The World Bank plans to augment its support for development of hydropower generation projects, increasing forest cover and expanding roadwork in Himachal Pradesh, whose economy heavily relies on tourism and apple plantations.

A six-member team of World Bank executives headed by Salman Zahir, energy development manager of the bank met chief minister Prem Kumar Dhumal and other senior government functionaries and showed renewed interest in funding different projects in the state.

Dhumal told FE during a visit to this city, ?With assistance from the World Bank, the state was preparing a master plan for sustainable development to protect the environment?.

Already a Rs 1365-crore World Bank-funded road project for development of road infrastructure in the state has been launched. The road project involves upgradation of about 436 km of state highways and all major roads in the districts across the state. The total cost of this project is Rs 1365.43 crore out of which Rs 990 crore will be the World Bank loan and Rs 375.43 crore as borrower component. The Centre on a grant basis will make about 90 % of the proceeds of this loan amount of Rs 990 crore available to the state.

Under the first phase of this project, 231.69 km of road length will be upgraded which include 44.82 km Mehatpur-Una-Amb road, 45 km Una-Barsar road, 45.80 km Barsar-Jahu road, 15.39 km Jahu-Kalkhar road and 80.68 kms Theog-Hatkoti-Rohru road. Under the second phase, 203.66 km of road length will be upgraded. The project to be implemented through the Himachal Pradesh Road Infrastructure Development Corporation will be completed by December 2012.

The World Bank has also agreed to extend the facility of carbon credit financing to Himachal Pradesh to encourage people to raise forests on private and community lands. New plantations will be raised over 12,000 hectares of degraded and fallow land under the scheme in a phased manner.

The growers will be paid Rs 25, 000 per hectare for raising the plantation and Rs 3,500 to Rs 5,000 per hectare annually for 10 years depending on the carbon sequestration efficiency of the plants.

Not to be left behind in the race, the Asian Development Bank too has agreed to fund three projects in the state.

Significantly, already on the recommendation of the union ministry of power, the Asian Development Bank has agreed to fund three power projects in the state. Official sources said the hill state has a potential to tap 22,000 mw of hydropower and the World Bank funding would mean a lot for the state?s development.

Other members of the World Bank team, which visited the state, are Judith Plummer, Darwil Field, Assendro (dam safety expert), UB Reddy, Tapas Paul and Rohit Mittal.