ADB ‘very concerned’ about corruption in India

February 14th, 2011 - 9:00 pm ICT by IANS  

Kolkata, Feb 14 (IANS) Though the Asian Development Bank (ADB) is “very concerned” about the level of corruption in India, its credit exposure to the country, at $2 billion this fiscal, will remain the same in the next financial year, a top bank executive said Monday.”We are very concerned about the corruption. Corruption does have an impact on investment. Countries with good governance attract more investment,” ADB managing director general Rajat M. Nag told reporters on the sidelines of a programme organised by the Indian Chamber of Commerce (ICC) here.

He, however, said the bank’s credit exposure to India will be the same in 2012.

“Our portfolio in India is in a very solid state. This year, our disbursal of loans was higher than the commitment. India is the third largest recipient of our credit,” he said.

Stating that need for infrastructure in India was huge, Nag said the sector was getting 70-80 percent of credit from the Manila-based bank.

He, however, said project implementation in the country had been slow.

“That is why our commitment to environmental projects is getting delayed. Project implementation is the key,” he said.

On land acquisitions for different developmental projects in India, he said, “Land acquisition is a very sensitive issue. It is a political process. Appropriate compensation (to land losers) is needed. Compensation is a very complex function. It is always a process of dialogue.”

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