Government sources told The Financial Express that the World Bank is insisting upon the formation of the mission with an officer of the rank of additional chief secretary as its managing director. The bank is also seeking a government notification defining the authority of the mission vis-a-vis other departments. It wants to channel the funds through the mission so that the latter could be held responsible for possible misuse of the funds.

The bank, which committed $350 million for power sector reforms in Orissa, has had a bitter experience with the finance department while releasing a part of the funds. Out of the Rs 155 crore the bank disbursed for the power sector reforms, the state finance department has provided only Rs 21 crore to the energy department, thesources said.