India to get $9.3 billion of WB loans for 2009-10

India has requested Bank to focus on the dedicated freight corridor, cleaning and conserving of the Ganga and emergency Kosi flood relief project

trithesh

Trithesh Nandan | June 23, 2010



The World Bank has committed 21 per cent of its US$9.3 billion of lending to India for the year ending June 2010 on infastructure, but the country wants more funds for energy, transport and other infrastructure.

"The demand for additional support for infrastructure development has been increasingly voiced by countries like India and China over the last few years, and the bank has been making sustained efforts to respond to it," World Bank Country Director (India) Roberto Zagha told journalists on Wednesday, while releasing the details of its India plan.

A significant portion of the loans for the year 2009-10 was aimed at helping the country remove infrastructure constraints to high growth, he said.

The bank, for instance, is helping fast industrialising and urbanising Haryana in electricity transmission and distribution. Lending to public–private partnerships (PPP) also tops the agenda of the Washington-based multilateral funding agency. Indian Infrastructure Finance Company Ltd (IIFCL) will get $1.2 billion to channelise into PPPs in infrastructure such as roads, power, airports, and ports.

“The government of India is accelerating its response to its development challenges and so are we,” Zagha said.

Prime Minister Manmohan Singh said in March that India will need to spend over $1 trillion in infrastructure development over the 12th Five-Year Plan.

The World Bank has also supported India with $1 billion in flagship primary education programme, the Sarva Shikhsa Abhiyan (SSA). “This year’s $750 million additional finance to SSA is the largest single International Development Assistance (IDA) loan to any country in one fiscal year,” the bank said.

The bank has also denied a British newspaper report that suggested instances of corruption in the SSA. “There is nothing serious in terms of magnitude of corruption in the SSA,” Zagha said in response to a question.

Some of the projects in the pipeline for the coming year include Dedicated Freight Corridor (DFC), cleaning and conserving river Ganga with $1 billion dollar, and Kosi flood recovery project with a credit of $200 million.

The Bank has also earmarked $3 billion to support India’s response to the global financial crisis which included $2 billion package to some public sector bank to maintain its credit expansion.

Zagha parried questions on lending for next year. "It is up to the Bank to decide for the next year."

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