Finance Minister flags problems over AIIB-funded border projects

New Delhi, July 16

Union Finance Minister Nirmala Sitharaman on Sunday took up problems linked to China-led Asian Infrastructure Investment Bank (AIIB) approving projects in India’s border regions.

In a meeting with AIIB president Jin Liqun, Sitharaman, who is also a governor of the bank as India is its second largest shareholder, “discussed critical issues relating to governance, personnel and approvals of Indian projects in Uttarakhand, Himachal Pradesh and other border states in India”. There was no further elaboration. Even immediately after the Galwan valley clash, India had continued to depend on AIIB financing, including for several marquee projects such as the Delhi to Meerut Rapid Rail project and the Mumbai Metropolitan Transport Project.

“While discussing issues of relevance to India and AIIB, Sitharaman suggested that AIIB should further use innovative financing and financing instruments so as to better address the infrastructure requirements of member countries,” tweeted the Finance Ministry.

Sitharaman also met her Canadian counterpart Chrystia Freeland and discussed the progress being made on ongoing trade negotiations. The meetings were held on the sidelines of the 3rd Finance Ministers and central bank governors meeting in Gandhinagar, Gujarat.

“They also discussed the progress on the ongoing various trade-related negotiations between India and Canada,’’ tweeted the ministry.