ADB, Jahrkhand - Current Affairs Questions and Answers

ANSWER: 6.7 percent

Explanation:
The Asian Development Bank (ADB) in its Asian Development Outlook Supplement has lowered India's economic growth forecast for current fiscal i.e. FY 2017-18 by 0.3% to 6.7% from earlier 7%.

The reasons cited for this downward revision of growth forecast of largest economy South Asia are lingering effect of demonetisation, transitory challenges to Goods and Services Tax (GST) and weather-related risks to agriculture.

ADB Forecast: Know More

• ADB has also revised downwards India's gross domestic product (GDP) outlook for next fiscal beginning from March 2018 to 7.3% from 7.4% mainly due to rising global crude oil prices and soft growth in private sector investment.
• However, it expects growth to pick up in remaining two quarters of FY 2017-18 as Government is implementing measures to ease compliance with new GST as well as bank recapitalisation.
• Inflation in India has remained subdued in first seven months of 2017-18, averaging 2.7%, with low food prices and demand still not out of woods because of demonetisation.
• However, inflation had picked up since July 2017 on price uptick for food, especially pulses and vegetables. Fuel prices also inched up in response to rising global crude oil prices.
• It has now projected inflation to average 3.7% in 2017-18, somewhat below the 4% earlier forecast.

ANSWER: $500 million

Explanation:
Multilateral funding agency Asian Development Bank (ADB) on 29th Nov, 2017 said it will provide a $500 million loan to improve rural road connectivity in five states, including Assam and West Bengal.

The board of directors of ADB has approved the multi-tranche financing facility (MFF) for the 'Second Rural Connectivity Investment Programme' to improve rural roads in five states of India, ADB said in a statement.

Under this project, ADB will invest to construct and upgrade over 12,000 kilometre rural roads in Assam, Madhya Pradesh, Chhattisgarh, Odisha and West Bengal. It will also support state governments to improve rural road maintenance and safety.

ADB is building on the success of previous assistance for rural roads in India. The agency will work closely with the government to improve connectivity for the rural people to access markets, health centres, education and other opportunities.

In the first tranche, ADB is expected to invest USD 250 million in December for construction of initial 6,254 km all weather rural roads in these states. While the second tranche of the loan of same amount is expected to come by the third quarter of 2019.

This leg of the ADB loan assistance for rural roads builds on the first 'Rural Connectivity Investment Programme in 2012' financing USD 800 million MFF to add about 9,000 km all-weather rural roads in these five states.

Apart from this MFF, the Manila-headquartered agency will provide a USD 500,000 technical assistance (TA) grant from its Technical Assistance Special Fund to strengthen sustainability of rural road assets, disaster resilience and innovation in rural road development.

The TA is due for completion in December 2021, with the investment programme expected to be completed by the end of 2023, ADB said.

Rural roads comprise nearly 80 per cent of India's overall paved road network connecting them to major district roads, state roads and national highways.

ANSWER: $4 billion

Explanation:
Multi-lateral funding agency Asian Development Bank (ADB) announced that it increase annual funding to India to up to $4 billion from existing $2.7 billion from next year to accelerate inclusive economic transformation.

As part of ADB's Country Partnership Strategy 2018-22, the multi-lateral funding agency will provide loans up to $4 billion on annual basis including non-sovereign or private debt during 2018-22.

Cumulatively, India which is the largest recipient of ADB will get about $20 billion over a period of 5 years.

ANSWER: ADB

Explanation:
The Government of India and the Asian Development Bank (ADB) signed a USD 175 million loan agreement to support construction of high voltage transmission systems.

This is to evacuate power generated from new mega solar parks to the interstate grid, and improve reliability of the national grid system.

The loan will be given to the Power Grid Corporation of India Limited (POWERGRID) and will include subprojects in various locations in India.

As an innovative feature, the project is designed to adopt the country systems on both safeguards and procurement at the agency level.

In addition to the ADB loan of USD 175 million, the project includes USD 50 million co-finance from the Clean Technology Fund (CTF).

This is a USD 5.8 billion component of the Climate Investment Funds, aimed at providing developing countries with resources to expand efforts in utilising low carbon technologies and transitioning to clean, renewable energy sources.

POWERGRID will make an equity contribution of USD 135 million to support the total project cost of $450 million.

The USD 175 million loan will be from ADB’s ordinary capital resources (OCR) and will have a 20-year term, and an annual interest rate will be applicable, determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility.

The USD 50 million CTF loan financing will come with a 40 year term.

The project will improve the capacity and efficiency of interstate transmission networks, particularly in transmitting the electricity generated from the new solar parks to the national grid.

Apart from the evacuation of 2,500 megawatts(MW) of power from solar parks in Bhadla, Rajasthan, and 700 MW from Banaskantha, Gujarat, POWERGRID is also including two additional subprojects that will increase solar power generation by 4.2 gigawatt and lessen carbon emissions by over 7 million tons every year.

POWERGRID would make an equity contribution of $135 million equivalent to support the total project cost of USD 450 million.

ADB: Know More

• Headquarters : Mandaluyong, Metro Manila, Philippines
• Main organ : Board of Governors
• President : Takehiko Nakao
• Purpose : Social and economic development

ANSWER: 7.4

Explanation:
ADB has cut India’s growth forecast to 7.4% for 2016-2017 and global headwinds will pull down the growth rate in the next fiscal. ADB has pegged growth at 7.8% in the earlier instance.

• ADB’s Asian Development Outlook also projected a rise in consumer inflation
• This is chiefly on account of the impact of salary hike on government employees and likely mid pick up in global oil prices
• Indian Finance Ministry has estimated growth to by between 7 to 7.5 percent in the next fiscal year and India is currently one of the fastest growing economies in the world.