IFC has already entered into discussions with several companies and associated financial institutions and work is expected to start soon.

Releasing the IFC annual report for 1999 on Monday, south and south-east Asia department director Rashad Kaldany said that in the current year, the institution was hopeful of completing at least two projects. IFC has started work on similar lines in Korea and Indonesia.

The Indian operations of IFC are no longer affected by US sanctions imposed on New Delhi after last year's nuclear tests, officials said. IFC vice president Jemal-ud-din Kassum told reporters in Washington that IFC "is now completely open for business in India."

The corporation "effectively reopened its business in India at the beginning of thisyear", Kassum said, noting that while IFC's ability to invest in India was "obviously somewhat delayed" by the sanctions, it didn't expect "any future effect" of the same on its operations in the country.

Financing the telecom sector is also high on IFC's agenda provided the new telecom policy is passed. According to Kaldany, high licence fees had restricted a direct involvement of IFC in telecom funding but if the sector switched over to revenue sharing there would be ``tremendous opportunities'' of investment.

IFC also wants to support entrants in insurance, once the sector is opened to private players. Pension fund management is another area where the institution sees a lot of scope. "India has a high saving rate. It needs to be effectively tapped."

In the current financial year, IFC has till now approved three projects for a total investment of $72 million. According to officials it can go up by $150 million by the end of the year. Last year, due to post-Pokhran economic sanctions, there was a lullin approvals and IFC approved projects only worth $54 million.

Although restrictions continue to apply on investment approvals for International Bank for Reconstruction and Development projects which do not address basic human needs, Kaldany said that IFC had been processing projects for investments in India since February this year and had not received any indication from its shareholders asking it to stop its funding process.

IFC has drawn a list of sectors where it would like to channel its investments.

Infrastructure development is one field where IFC wants to concentrate its attention. It is working on developing links with local financial institutions like the IDFC, ICICI and ILFS for financing the sector. It is holding discussions to form a new financing mechanism for mobilising more investment resources for private infrastructure, including financial guarantee products.

In the power sector, IFC feels that the state electricity boards should be restructured and there should be a major focus ondistribution. If the government allows private players in distribution, we would be keen to provide the adequate support, said Kaldany

Additional financial markets focus would be in contractual savings, housing finance and distressed asset resolution, development of local debt markets, mechanisms for SME finance focussed on backward areas and strengthening of banks and non-bank financial institutions.