TN May Get Rs 650 Cr More From World Bank

New Delhi, March 24 | Updated: Mar 25 2004, 05:30am hrs
World Banks southern bonanza continues. In a shot in the arm to Tamil Nadu, the bank is set to provide Rs 650 crore more for poverty alleviation programmes in the state.

The bank board will take a final decision in May, sources say. A large chunk of the loan is likely to go to self-help groups in Tamil Nadu. However, the nitty gritties are yet to be decided, a senior official at World Bank said.

The banks total assistance to India will touch about $2 billion by June and it is planning to increase this in the next financial year. Speaking to FE earlier, Michael Carter, country director, World Bank, said the bank will provide loans worth $2.5 billion in the next financial year. The target is to double the amount in the next few years, he said.

However, he also said that future loans may be disbursed under the IBRD category.

The proportion of International Development Association and International Bank of Reconstruction and Development (IBRD) may change and it may tilt towards IBRD, he added.

It is also understood that in 2005 the bank will revise its IDA grants for individual countries. The proportion will automatically change after the revision, we will have to wait and see, Mr Carter said.

The governments total stock of external liability, which includes stock of debt and interest rates, as of September 2003 is estimated at $110 billion.

The government has however decided to repay high-cost loans to World Bank and Asian Development Bank. Thus, $3.5 billion will be paid to both the multilateral agencies by the end of the financial year.