India and the ADB
Finance Minister Chidambaram told a meeting of the Parliamentary Consultative Committee attached to his Ministry that
1. India became a member of the ADB as a founding member in 1966 and started borrowing ordinary capital resources only in 1986.
2. India has a permanent seat in the ADB whose membership today has risen to 67.
3. Since 2004, we have encouraged ADB and the World Bank to deal directly with the States except the special category States. The lendings are provided on back to back basis and we play a catalyst role between the lending institutions and the State Governments.
4. ADB's another arm is its lending to private sector for infrastructure development through public-private partnership mode.
5. The private sector would have to play a more important role in the development of the Asia and Pacific region.
6. However, it is our belief and experience that the bulk of the resources for infrastructure will still have to be found through the public sector.
7. Hence, a portfolio restructuring plan for ADB to increase the private sector's share of annual loans to 50% will be consistent with the continued need for a vibrant public sector and this twin strategy will succeed only if total loan approvals and/or disbursements are enhanced significantly.
8. The fundamental role of ADB as a multilateral development bank should not be diluted by an overemphasis on non-sovereign loans at the cost of sovereign loans.