The BRICS New Development Bank (NDB) has agreed to sanction four loans worth $811 million including its first package of $250 million to Canara Bank for a renewable energy scheme in India, according to a Hindustan Times report.
The money, to be disbursed in a staggered manner, will be used to support renewable energy projects with a capacity of 2,370 MW in the four countries namely Brazil, China, South Africa and India.
The first tranche of $75 million will be given to Canara Bank for “on-lending to projects for generating 500 MW additional renewable energy capacity”.
The decision to approve first loans was approved by the NBD at the board of governors on the sidelines of the International Monetary Fund (IMF) and the World Bank spring meetings in Washington DC, RIA reported.
The Bank has decided to provide $300 million to Brazil, $81 million to China, $250 million to India and $180 million to South Africa.
“There are many more new projects in the pipeline including projects from Russia. They are at various stages of consideration or appraisal,” the NDB spokesperson said, according to RT.com.
The New Development Bank created by Brazil, Russia, India, China and South Africa started its operations in July, 2015, with initial authorized capital of $100 billion. The goals of the bank, headquartered in Shanghai, is to fund infrastructure projects in emerging economies for sustainable development.