India becomes 69th shareholder of European Bank for Reconstruction & Development

New Delhi, July 12: India has become the 69th shareholder of the European Bank for Reconstruction and Development, paving the way for more joint investment with Indian companies across the bank's regions of operation.

 

European Bank President Suma Chakrabarti said in London on Wednesday that India had applied for the membership in December 2017. The Board of Governors, voted unanimously in favor of the country's application in March 2018, with the entire membership process completed this week.

London-headquartered EBRD is a multilateral development bank set up in 1991 after the fall of the Berlin Wall. It aims to promote the private and entrepreneurial initiative in emerging Europe and invests in 38 emerging economies.

The EBRD’s board of governors, which represents all existing shareholders, voted unanimously in favor of the country’s application in March 2018.

India takes a shareholding in the EBRD but will not be a recipient of EBRD financing. But it may benefit indirectly through EBRD projects or if Indian companies invest alongside the bank.

The London-based bank has already worked with Indian companies on joint projects worth almost 1 billion euros ($1.18 billion), including investments with Tata, SREI, Jindal, and Mahindra and Mahindra.

 

The EBRD is also working closely with leading Indian organizations, such as FICCI, the Confederation of Indian Industry (CII), the Associated Chambers of Commerce & Industry of India (ASSOCHAM), and the International Solar Alliance (ISA).