India-New Development Bank sign 500 million USD agreement

On November 19, 2020, India and the New Development Bank signed an agreement of 500 million USD. Under the agreement, the New Development Bank is to lend the funds to implement Delhi- Ghaziabad-Meerut Regional Rapid Transit System project. The funds will be used to provide reliable, fast, safe and comfortable public transport system in the region.

Significance

The daily passenger traffic along the Delhi-Ghaziabad-Meerut corridor of the National Capital Region is  0.69 million. Of this around  63% use private vehicles. Due to traffic congestion the time taken to transit between Delhi and Meerut is about 3 to 4 hours. Also, the traffic congestion in the route is adding to the air pollution in NCR region. Thus, it is essential to implement the Rapid Transit System Project.

New Development Bank

The New Development Bank is usually referred to as the BRICS bank. The headquarters of the bank is located in Shanghai, China.  The proposal to establish the New Development Bank was made by India at the fourth BRICS Summit that was held in New Delhi in 2012.  The shares of the bank are equally distributed among the members. Brazil, Russia, India, China and South Africa hold 20% of the shares of the bank. 25% of the bank loan go for water and sanitation projects, 24% for Transport project, 30% for energy project.

Regional rapid transit system

The Regional Rapid Transit System connects fastest developing small towns in the National Capital Region. The main objective of the project is to reduce the dependence on Roadways. It is being implemented by the National Capital Region Transport Corporation.

Technologies used

Ballastless Tracks are to be used in Regional Rapid Transit Systems. These tracks are being used for the first time in India. They are easy to replace. These tracks provide excellent riding comfort even at a speed of 180 km per hour.

Month: Current Affairs - November, 2020