This was communicated by the World Bank chief to Finance Minister Yashwant Sinha at a meeting held in North Block on Monday. India has been seeking an enhancement in the country assistance strategy (CAS) of the World Bank to $4 billion per annum.

Talking to newsmen after meeting Mr Sinha, the World Bank President said, "We are perfectly happy to look at an increase (of loans). I think we are mutually agreed that we want to make sure that all we are doing now is well carried out so that we can build intelligently for the future."

He said, "I have told the minister that as far as the bank is concerned, we are more than happy to look at an expansion of activities and I think each one of us is keen to make sure that we spend the money correctly. We are going to work together." On sanctions, Mr Wolfensohn said the bank has always taken the view "that we should try and continue to lend to India, and we will continue to lend to India and expand our programmes."

He said, "Right throughout the period of sanctions, I think you would have noticed, the bank was able to have an expanded definition of human beings and we were able to continue lending here and there. It is our expectation that sanctions will become less and less effective."

The World Bank chief, however, expressed concern over the level of investment and the drop in growth rate in India, but felt that the economic growth at 6 per cent was "still good" on an international basis.

In the coming five years, he said the World Bank would continue to lay special emphasis on both social and physical infrastructure sectors in India. "Social sectors like education, health, poverty, water and infrastructure sectors including highways and power in India will receive priority," he said.

On the impact of burgeoning international oil prices on developing economies like India, the World Bank chief said, "The oil prices are definitely a cause for concern."

Meanwhile, Mr Sinha expressed confidence of achieving a `satisfactory' GDP growth rate for the country this fiscal and added that the government had already initiated action for propping up the slow-growing sectors.

"Growth rate is something that we are watching very closely. We have problems and challenges in the economy but we are capable of meeting those challenges. We are capable of solving those problems and have initiated some steps, both on the wider front and on a sectoral front, he said.

Mr Sinha added that studies have pointed out to a growth rate varying from 5.8 per cent to 6.6 per cent for the Indian economy during the current financial year.

Mr Sinha said the government was looking at short-term as well as medium-term solutions and suggestions from the chambers to reverse the slowdown the economy had already come. "We have initiated action regarding some of the suggestions and in the process of initiating action on the others. But the idea is to arrest the slowdown, to impart momentum to those sectors of the economy which are slowing down in this financial year," he said.

The finance minister further said that on the positive side housing activities have picked and as a result of which the cement industry was showing good growth.

However, he said that growth movement was not enough to keep the growth rate of the cement sector at 20 per cent which had been achieved last year. Mr Sinha said the government was trying to expedite the contract for concretising of some section of the highway project initiated by Prime Minister Atal Bihari Vajpayee to give a boost to the cement industry.

The government was also taking steps to accelerate construction activities like building of bridges in the rural areas and the urban areas. Mr Sinha said the problem of dumping of foreign goods in India was not alarming as it has been made out to be though the government was taking all possible measures to curb this problem.

He said the Prime Minister's advisory group was already monitoring the various projects. He added that the government was also working for quick financial closures for the power and the other core sectors.

He said the affected or `injured' industries have already been asked to take advantage of anti-dumping and the safeguard duty mechanisms for tackling the problems of dumping.

Later in the day, World Bank President met Information Technology Minister Pramod Mahajan. Mr Wolfensohn, who was also briefed by a select group of corporates and FIs about the general situation of the Indian economy, will call on Vajpayee before winding up his India tour.

The World Bank has agreed to help the ministry of information technology in funding its two projects: IT for Masses and Operation Knowledge, each worth $1 billion. The bank has also shown interest in setting up a centre in India to research on using IT to remove poverty.

Addressing the media after a meeting with World Bank President James D Wolfensohn, IT Minister Mr Pramod Mahajan said that he had apprised Mr Wolfensohn about India's plan to become a digital country and develop a reservoir of IT professionals to feed the demand of the world.

The World Bank President, according to the minister, has shown keen interests in the project and offered to partner with India for such projects. Mr Wolfensohn had asked to give him a brief note on the projects for further considerations, said Mr Mahajan adding that the note would be sent to him by tomorrow.

When asked about fund commitments, Mr Wolfensohn said that he was impressed with the ideas and intend to initiate a partnership with India for such projects. "The commitment of partnership is above committing funds," he said.