New Delhi: World Bank (WB) today (Dec 12, 2003) indicated that it will double its lending to India to $ 2.5-3.0 billion annually within 2-3 years, and said it plans to raise $ 100 million from the domestic market through bonds.

"We have already discussed with Government, which wants the bank to increase our lending. Our funding to India would increase substantially in the next 2-3 years," WB Country Director Michael Carter said after launching a 'Country-level Development Market place' initiative in New Delhi.

Indications are that WB would step up loan sanction to $ 2.5-3.0 billion by 2007 from $ 1.7 billion during July 2003-June 2004.

WB's announcement of hiking loan sanction to India comes a day later Asian Development Bank (ADB) expressed willingness to increase its lending to $ 1.7 billion from next year (2004).

"We are planning to sanction loans to 10 new projects a year," Carter said, adding the thrust would be on infrastructure, Human Resource Development (HRD), rural livelihood and fiscal and structural reforms of states.

Referring to Finance Minister Jaswant Singh's plan of heralding a second Green Revolution, Carter said, "Our assessment is that -- what is needed in rural development is substantial increase of investment in agriculture."

He said the WB was eager to offer assistance to India in development of rural roads, electrification, irrigation and Research and Development (R&D).

"We are also talking to state governments of Orissa, Tamil Nadu and Punjab for fiscal and structural adjustment," Carter said.

PTI