US DFC Board Approves $340 Million Loan To India For Food, Health & Development Projects

Loan worth $340 million has been committed to India to strengthen health systems, bolster food security, empower smallholder dairy farmers and innovate the dairy industry, and support other highly impactful development outcomes.

Loan worth $340 million has been allotted to India to strengthen health systems. (File Photo/ AFP)

New Delhi: Days after committing to donate 200 ventilators to India amid the COVID-19 pandemic, United States has now approved loans and investments worth more than $340 million in India for various development projects. As per the latest developments, US International Development Finance Corporation (DFC)’s board of directors recently approved investments worth $1 billion with the aim to bring development in Africa, Latin America, the Indo-Pacific, and emerging markets globally. Of the $1 Billion fund, loan worth $340 million has been allotted to India to strengthen health systems, bolster food security, empower smallholder dairy farmers and innovate the dairy industry, and support other highly impactful development outcomes. Going by the reports, the board agreed upon $20 million in equity that will help 'FreshToHome' deliver high-quality, affordable fish, meat, and produce to homes across India. In addition to this, a loan worth $142-million has been approved for the renewal of Power construct and operate a 300 MW solar power plant in Rajasthan. This will strengthen energy security in India. Another $50-million loan will enable Sitara Solar Energy Private Ltd to build and operate a 100 MW solar power plant in Rajasthan to enhance power supply. As quoted in reports, the US embassy in a statement on Friday said "up to $30 million investment in South Asia Growth Fund II will support businesses in the energy, water, and food sectors across India. The fund aims to promote sustainable access to and the efficient use of these resources, which remain scarce in many regions of India." Meanwhile, DFC CEO Adam Boehler reportedly said that the impact of these projects will be particularly meaningful as the world continues to fight the health and economic fallout of the pandemic. Calling India as ‘friends’ American President Donald Trump in May extended a helping hand to the country and announced that the US will donate ventilators to India. Trump had said that they will be sending ‘a lot of’ ventilators and that they stand with India during the pandemic.