Context: The Asian Development Bank (ADB) and the Government of India today signed a $132.8 million loan to strengthen and modernize the distribution network and improve the quality of power supplied to households, industries, and businesses in India’s north-eastern state of Meghalaya.
- Though Meghalaya has achieved 100% electrification, remote rural areas in the state suffer from frequent power interruptions due to overloaded distribution networks and substations that use outdated technology, resulting in high aggregate technical and commercial (AT&C) losses.
- The Government of India and the state government of Meghalaya embarked on a joint 24×7 Power for All Meghalaya initiative to provide uninterrupted, quality, reliable, and affordable power supply to all electricity consumers.
What Is the Asian Development Bank?
- Founded in 1966, the Asian Development Bank’s (ADB) headquarters are in Manila, Philippines.
- ADB is composed of 68 shareholding members, 49 of which are from the Asia and Pacific region and rest from outside the region.
- The Asian Development Bank’s primary mission is to foster growth and cooperation among countries in the Asia-Pacific Region.
- It has been responsible for a number of major projects in the region and raises capital through the international bond markets.
- The ADB also relies on member contributions, retained earnings from lending, and the repayment of loans for the funding of the organization.
- The two largest shareholders of the Asian Development Bank are the United States and Japan.
How the Asian Development Bank Works
- The Asian Development Bank provides assistance to its developing member countries, the private sector, and public-private partnerships through grants, loans, technical assistance, and equity investments to promote development.
Board of Governors
- ADB’s highest policy-making body is the Board of Governors, which comprises one representative from each member nation – 48 from the Asia-Pacific and 19 from outside the region.
Board of Directors
- The Governors elect 12 members to form the Board of Directors, which performs its duties full time at the ADB headquarters.
South Asia Subregional Economic Cooperation
- India is also a member of the ADB’s South Asia Subregional Economic Cooperation (SASEC) program.
- The South Asia Subregional Economic Cooperation (SASEC) program brings together Bangladesh, Bhutan, India, Maldives, Myanmar, Nepal, and Sri Lanka in a project-based partnership that aims to promote regional prosperity.
- A long term strategy initiated by the Asian Development Bank to address the financial requirement of the Asian countries to deal with poverty.
- “Asian Development Outlook” is one of the major publications of ADB.