New Development Bank

• At the fourth BRICS Summit in New Delhi (2012), the leaders of Brazil, Russia, India, China and South Africa considered the possibility of setting up a new Development Bank to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies, as well as in developing countries. 
• During the sixth BRICS Summit in Fortaleza (2014), the leaders signed the Agreement establishing the New Development Bank (NDB).

Significance of New Development Bank

• • The daily passenger traffic along the Delhi-Ghaziabad-Meerut corridor of the National Capital Region is  0.69 million. Of this, around  63% use private vehicles. 
  • Due to traffic congestion, the time taken to transit between Delhi and Meerut is about 3 to 4 hours. 
  • Also, the traffic congestion in the route is adding to the air pollution in the NCR region. Thus, it is essential to implement the Rapid Transit System Project.
  • India asked the New Development Bank (NDB) to enhance the emergency facilities to $10 billion to deal with the challenges posed by the outbreak of the COVID-19 pandemic.
  • The country appreciated the efforts of the multilateral lending agency on fast-tracking of financial assistance of about $5 billion to BRICS countries, including emergency assistance of $1 billion to India to combat the COVID-19 pandemic.
  • Lauding efforts of the NDB in establishing itself as a credible Global Financial Institution, India said it should take appropriate actions to join G-20 forum along with other Multilateral Development Bank (MDBs)/ International Financial Institutions (IFIs).

Objectives:

• Fostering the development of member countries.
• Supporting economic growth.
• Promoting competitiveness and facilitating job creation.
• Building a knowledge-sharing platform among developing countries.
• Multi theme.
• Clean energy
• Social Infrastructure
• Environmental efficiency
• Urban development
• Irrigation, water resources and sanitation management
• Transport infrastructure 

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Regional rapid transit system:

• The Regional Rapid Transit System connects the fastest-developing small towns in the National Capital Region.
• The main objective of the project is to reduce the dependence on Roadways. It is being implemented by the National Capital Region Transport Corporation.

Initiatives taken:

• Announcement of a scheme of social support measures amounting to $25 billion (Rs 1.70 lakh crore) to alleviate the hardship of the poor and the vulnerable.
• Insurance cover of $67,000 (Rs 50 lakh) per person to over 2.2 million frontline health workers and others provision of relief to firms in statutory and regulatory compliance matters.
• Creating a COVID-19 Emergency Fund
• Allocation of $2 billion (Rs 15,000 crore) by the government for strengthening the healthcare system.

• To fulfill its purpose, the Bank supports public or private projects through loans, guarantees, equity participation and other financial instruments
• The NDB is building a robust and diversified portfolio of sustainable infrastructure projects, in order to fulfill its mandate and achieve strategic objectives.