The Asian Infrastructure Investment Bank (AIIB) has passed a $356 million loan to develop the Chennai metro rail system. The AIIB is a development bank that supports the making of infrastructure in the Asia-Pacific area. China is the largest shareholder of the bank with 26.06 per cent voting rights. India is the second-largest shareholder with 7.5 per cent, followed by Russia and Germany.
The project includes the building of a new corridor in Chennai’s metro network as part of its Metro Rail Phase 2, AIIB Vice President for Investment Operations D J Pandian told. With this loan, the bank has approved 28 projects in India of a total of $6.7 billion, Pandian said.
Besides funding different infra projects, the bank also invested $1.75 billion to India for Covid-19 relief budget support, including help for social protection and support to Micro, Small and Medium Enterprises (MSMEs).
The project will address traffic jams and decrease greenhouse gas eruptions by raising public urban transport options. Its design and construction will have environmentally friendly features to lessen its carbon footprint. In addition to solar panels installed on the roofs of the metro stations, the project will also have dedicated places for bicycles and green vehicles to increase environmental awareness.