While Gujarat sought a $1,809 million assistance loan for 11 development projects during its presentation before Mr Wolfensohn on his half-day visit to the state, he harped on the need to take up projects in health, education, poverty removal, urban and social infrastructure development.

During his informal lunch meeting with chief minister Keshubhai Patel among others, he said that the WB was keen to co-operate with a progressive state like Gujarat and assured him that the bank would consider the state's projects on a priority basis.

He also lauded the way GoG tackled the state's drinking water problem. Talking about the Narmada river valley project, he felt that GoG should take more care about issues involving the beneficiaries of the project. He also showed considerable interest in a drinking water pipeline project based on the Narmada's waters and even agreed to consider the issue afresh.

Although the SSP, still under construction, is considered to be the `lifeline of Gujarat', both parties avoided raising the topic for discussion even once. Being a contentious issue between the WB and GoG, it was deliberately kept out of the agenda. It may be recalled that the WB had withdrawn a $300 million loan well after it was sanctioned and partially spent on the main dam after the WB-commissioned independent Morse Committee had published adverse remarks about the project's environmental and other aspects.

However, Mr Wolfensohn was all praise for the GoG who prepared a plan document, called `Gujarat's Agenda for Infrastructure Vision 2010' and also expressed his satisfaction at the state's proper utilisation of WB loans so far.

Earlier, making a presentation before the WB president, additional chief secretary (finance) KV Bhanujan, said the state has so far received a $ 417 million loan from WB for 14 projects, mostly related to drinking water and sewer treatment, rural roads and medium scale irrigation projects. Two other major WB-aided projects, including $533 million for state highways and $15 million for a national hydrological project in the state, are underway.

The GoG sough fresh loans amounting to $1,809 million under 11 major heads, including a $347 million loan for disaster management, a $311 million loan for drinking water, a $311 million loan for urban infrastructure, a $258 million loan to check salinity ingress, $ 44 m. to reclaim alkaline land, $ 160 m. for water resources and $ 89 m for desert control.