World Bank Readies $2 Bn Loan, Investment Scheme

Bangalore, May 21: | Updated: May 22 2003, 05:30am hrs
The World Bank has firmed up its plan of $2 billion comprising loan and investment for 2003-04 for India. WB proposes to provide loan for structural adjustment and make investment in physical and social infrastructure programmes in various states.

World Bank sources told FE at the sidelines of the annual bank conference on development economics (ABCDE) that Structural reforms and stabilization programs during the 1990s have contributed to Indias sustainable economic growth, which has been relatively strong over the past two decades, averaging between 5 and 5.5 percentage points a year. However, vast disparities in per capita income level between and within Indias states persist.

8% GDP Growth Feasible For India
OUR ECONOMIC BUREAU

Bangalore, May 21: World Bank sources said that eight per cent GDP growth is achievable for India provided it removes various roadblocks and increases pace of reforms. India has done a remarkable job since the launch of structural adjustment in 1990s..
They said India was selected for holding WBs ABCDE mainly in view of its consistent economic progress. The ABCDE, which is currently taking place at Bangalore is a maiden such event, outside Washington DC.

The list of projects being considered by the World Bank include Tamil Nadu state highway project- $350 million, Allahabad bypass -$150 million, Kerala state highways project -$300 million, Karnataka municipal water supply programme for 10 small and medium towns -$150 million, Andhra Pradesh urban reforms programme -$130 million, Gujarat urban Reform Programmes -$100 million, Solar Thermal Power Project in Rajasthan -$98 million. India joined the WB in 1944 and is one of its oldest members. As of June 2002, India is the Banks largest single borrower, with cumulative lending of more than $58 billion in combined market-based loans from the International Bank for Reconstruction and Development (IBRD) and development credits from the International Development Association (IDA), the World Bank affiliate that provides interest-free loans to economies with low per capita incomes. Since 1950, the Bank has extended assistance to India for 434 projects, roughly equal in number from IBRD and IDA. Loans from IBRD total approximately $29.6 billion, and credits from IDA total $28.8 billion equivalent.