Political opportunists have questioned India`s decision to sign a $750 million loan agreement with the Asian Infrastructure Investment Bank (AIIB) to support the Pradhan Mantri Garib Kalyan Yojana (PMGKY) measures. NEW DELHI, August 24 (Xinhua) — The Indian government on Monday signed a $500 million agreement with the Asian Infrastructure Investment Bank (AIIB) to improve network capacity, service quality and safety of the commuter train system in Mumbai, Maharashtra`s capital, officials said. The loan agreement was signed by Shri Sameer Kumar Khare, Deputy Secretary, Ministry of Economy, Ministry of Finance, on behalf of the Indian Government, Shri Sanjay Kumar, Chief Secretary, on behalf of the Maharashtra Government, Shri R. S. Khurana, Director General of the Employment Corporation on behalf of Mumbai Rail Vikas Corporation and Shri Rajat Misra , Managing Director (Acting), Investment Operations on behalf of aiIB. “The Government of India, the Government of Maharashtra, Mumbai Railway Vikas (Development) Corporation and the Asian Infrastructure Investment Bank (AIIB) today signed a $500 million mumbai Urban Transport Project III loan agreement to improve network capacity, service quality and safety of Mumbai`s commuter rail system,” the Finance Ministry said in a statement. Regular authors claim that we took a “loan from China” or a “Chinese bank,” although our soldiers were martyred by the PLA in the Galwan Valley. The total estimated cost of the project is $997 million, of which US$500 million is funded by the AIIB, $310 million by the Maharashtra government and $187 million by the Ministry of Railways. AIIB`s $500 million loan has a five-year, 30-year term.
The question, then, is what is wrong with borrowing from a bank created by the use of our own money. Especially since India is the bank`s second largest shareholder and The Minister of Finance of India sits on the board of AIIB. The response to the Chinese has been unwavering and demonstrates the strong commitment of the current government to treat the problem with the utmost care, taking into account the multidimensional nature of the problem. Suggesting otherwise on the basis of false equivalence is not only a great disservice to the Indian people, but also an appearance of unease to support the campaign of some CCP members to weaken India through internal political tensions that concern our government. First, unlike what has happened before or as under the UPA, the Indian government is aware that it will not let the status quo change. Therefore, any provocation is accomplished by an appropriate response to delay future attempts to amend the LAC.