New Delhi: Asian Development Bank (ADB) is considering hiking annual assistance to India by more than 50 per cent to 2.0 billion Dollars but asked the government to step up reforms in power, agriculture and financial sectors.

"We will seriously consider enhancing annual assistance to India to two billion Dollars a year. We have various expectations of the reform efforts. It's a necessity but not a pre-condition," ADB President Tadao Chino said on the sidelines of an interactive session hosted by FICCI on February 5.

While lending, the bank wanted to make sure that the loans were used efficiently, he said, stressing on the reforms.

According to official estimates, India needs 5.0 billion Dollars from multilateral agencies in the coming years to ensure a higher growth rate. The government has sought 2.0 billion Dollars from ADB, of the total 5.0 billion Dollars.

ADB Director General (South Asia), Y Iwasaki, said the hike in loan amount to 2.0 billion Dollars from the present 1.2-1.3 billion Dollars would depend on India's absorptive capacity, debt management and portfolio performance.

"These issues will be examined in the new Country Strategy Programme to be developed by mid-2002," he said.

ADB has provided a total 10.3 billion Dollars for 52 projects since 1986. Currently loans totalling 5.4 billion Dollars are being utilised in 24 projects.

The Manila-based bank, in which India is the fourth largest shareholder, has also provided 285 million Dollars to the private sector and about 71.3 million Dollars worth of technical assistance to Indian corporates.

PTI