Bangalore: World Bank (WB) is in advanced stage of discussions with Karnataka Government on sanctioning loans/credits in excess of $ 200 million for urban sector reforms and health projects, a WB official said today (Sep 14, 2004).

"We don't know yet (about the final figure). But each of these will be in excess of $100 million," WB's Country Director Michael Carter told in Bangalore.

"I would very much hope that urban reforms project will be negotiated by the end of this calendar year, and the health project a little after middle of next year," he added.

According to WB officials, the Bank also has a substantial investment project portfolio in Karnataka - this accounts for about seven per cent of the Bank's net commitments to India.

Earlier, speaking at the launch of Karnataka Public Financial Management and Accountability study, prepared by the WB, Carter said while the State's growth record is good, it is endangered by infrastructure bottlenecks.

Karnataka's rural population, he said, faces recurrent drought and water shortages, and the State's human development indicators have lagged behind those of its southern neighbour, Tamil Nadu.

"Whereas over the last 20 years, Tamil Nadu has zoomed from 7th in the Human Development Index ranking of India's States to 3rd, Karnataka has marginally fallen from 6th to 7th".