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Home -> Finance -> Full Story

World Bank to double loans to India at $3 bn yearly
Friday, June 25 2004 19:53 Hrs (IST)

New Delhi: World Bank will double loan sanctions to India to about $ three billion annually during 2005-08, as the scope for funding has widened with the promises for poor in the Common Minimum Programme (CMP) of Government.

"The country assistance will be almost doubled to $ three billion annually in the next four years," World Bank vice president for South Asia, Praful Patel, said announcing its country assistance strategy.

The Bank would provide $ 2.15 billion through IBRD loans at commercial rates and another $ 750 million through its concessional lending arm IDA, he said, adding the Bank had provided $ 1.5 billion during the last fiscal.

"There is scope for us to scale up the assistance in line with the CMP," he said.

World Bank country director Michael Carter said that the Bank would like to focus on relatively poorer States like Bihar, Uttar Pradesh, Orissa and Jharkhand.

Karnataka and Orissa are expected to get structural adjustment loans, he said, adding that Andhra Pradesh has been provided $ 220 million a few months ago.

The Bank estimates that States would require $ 500-900 million a year, while a bulk would go towards funding infrastructure, social sector projects, especially education and health.

It was also considering several loans for projects in power, railways, roads and urban development.

It would stress on strengthening the enabling environment for development and growth by improving effectiveness of Government-sponsored programmes, fostering private sector led growth and promoting health and education.

PTI