India’s Dinesh Sharma has been elected to the board of directors of the China-sponsored Asian Infrastructure Investment Bank (AIIB).
Dinesh Sharma, Additional Secretary of Ministry of Finance has been elected to the 12-member board for which a secret ballot was held. This will be the first board of directors for the new bank in which 57 members joined as founding members.
The inaugural meeting of the board of the governors of the AIIB also held in Beijing after its formal launch. The meeting approved by-laws, rules and codes of conduct for the bank.
It should be noted that Union Finance Minister Arun Jaitley is the designated governor of the AIIB from India. However he was represented by Mr. Sharma at the meeting.
Presently, Dinesh Sharma is serving as Additional Secretary of Union Ministry of Finance.
About AIIB
- With authorised capital of $ 100 billion and subscribed capital of $ 50 billion, AIIB will invest in sectors including energy, transportation, urban construction and logistics as well as education and healthcare.
- China is the largest shareholder with 26.06% voting shares. India is the second-largest shareholder with 7.5% followed by Russia 5.93% and Germany with 4.5%.
- India whose total capital subscription amounts to $8.37 billion has paid first instalment of $334.70 million to the paid-in capital stock of the bank. 20% of the subscription is to be paid in five equal instalments.
- The election of India to board of directors of the AIIB is expected to provide significant role for it as it is the forum that approves the loans for projects.