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The Asian Development Bank (ADB) expects its finances in infrastructure projects in India to increase, irrespective of land acquisition complications.
Talking to reporters on the sidelines of a seminar — South East Asia Economic Integration: Infrastructure and Trade Challenges, organised by the Indian Chamber of Commerce here on Monday — Mr Rajat M. Nag, Managing Director-General, ADB, admitted that the lending agency previously “underestimated” such issues (land acquisition) while appraising projects in India.
Land acquisition snags
“Earlier we underestimated the issue. Land acquisition here is very sensitive,” he said, adding that the agency is now spending “more time” in reviewing the issues with regard to rehabilitation of the project affected as a part of its project appraisal programme.
“We are spending more time on our upfront work which includes rehabilitation and compensation packages,” he pointed out clarifying that the ADB is not mulling any compensation package of its own.
On the issue of increasing investments and its areas of focus, Mr Nag maintained that while demand for infrastructure was likely to go up, the agency is likely to invest a “little over $2 billion” next fiscal.
“While operations in India are increasing, our resources are limited,” he added.
In 2010-11, the agency's lending was around $2 billion in the country, higher than the $1.5-billion that it allotted to China.
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