"The Government of India has already alerted the World Bank," Union minister for steel Dilip Ray told The Financial Express. "The bank has indicated that it is ready to field a multi-disciplinary mission to Orissa at a short notice and at a date convenient to the state government," he said.

The loan will be used to meet expenses incurred towards restoration of infrastructure and cyclone preparedness but not for rescue and immediate relief operations.

Ray, a Biju Janata Dal Rajya Sabha member from Orissa, said all legitimate expenditures for relief and rescue operations will be met from the grant given by the National Fund For Calamity Relief (NCRF) if the state has exhausted its Calamity Relief Fund of Rs 47 crore. "The Prime Minister has already assured that in view of the size of the problem faced by the Orissa government and the financial position of the state, funds will be made available for relief and rescue works in cyclone-affected areas," he said.

Dispelling the fear that Orissa will not be able to seek soft loans from international and multilateral institutions unless the cyclone is declared a national calamity, Ray said Maharastra after the Latur earthquake in 1994-95 and Andhra Pradesh after cyclone/ floods in 1997-98 availed of loans from international lending organisations.

Meanwhile, a controversy has been raised over the declaration of the Orissa super cyclone a national disaster. All India Congress Committee general secretary Pranab Mukherjee and Madhya Pradesh Chief Minister Digvijay Singh said at a press conference here recently that the declaration is essential to get international funds for the reconstruction of the cyclone-ravaged districts.

Stating that the reconstruction could not be taken up without international assistance, the two Congress leaders said the government can impress upon the World Bank for soft loan only if the cyclone is declared a national calamity. "A World Bank loan of Rs 11,000 crore could be obtained for reconstruction after Latur earthquake because the Centre declared the disaster a national calamity," they pointed out.