The World Bank plans to double lending to India to nearly 3 billion US dollar by 2006, especially for infrastructure, education and health, reports the Bank in its press review Tuesday.
– We will substantially expand our support, said Praful Patel, the World Banks vice president for South Asia. – A large part of this expansion will be in the form of advisory work, but the increase will also involve more national level lending compared to recent years.
India is already the largest recipient of low-cost credit from the World Bank. The multilateral agency, which is preparing its assistance strategy for India, plans to set a 3 billion dollar cap for lending to India during 2005-2008.
Michael Carter, the World Banks country head for India, said that limit is expected to be reached during the financial year starting June 2005. The World Bank is lending India 1,5 billion US dollar in the current financial year ending June 30.
Carter also said the bank is unlikely to continue providing budgetary support to southern Andhra Pradesh state where the new regional government has announced it will supply free power to farmers. The World Bank lent 220 million dollar to Andhra Pradesh in February before the previous pro-reform regional government was ousted in last months state elections.
The Press Trust of India Limited adds Carter said the Bank would like to focus on relatively poorer states like Bihar, Uttar Pradesh, Orissa and Jharkhand. Karnataka and Orissa are expected to get structural adjustment loans, he said, adding Andhra Pradesh has been provided with 220 million a few months ago.
The Bank estimates that states would require 500 – 900 million US dollar a year, while a bulk would go towards funding infrastructure, social sector projects, especially education and health.
It was also considering several loans for projects in power, railways, roads and urban development. It would stress on strengthening the enabling environment for development and growth by improving effectiveness of government-sponsored programs, fostering private sector led growth and promoting health and education.
The Indian newsspaper, The Hindu, notes Patel said the World Banks Country Assistance Strategy was consistent with the new Governments Common Minimum Programme. He explained that the new CAS was actually a draft that would incorporate suggestions from institutions, organizations and even members of the public. The first draft would be on the official website of the World Bank till July 14 and the Bank would welcome comments from interested members of the public.
Patel also underlined three strategic principles which would underpin the Bank groups work. The first would focus on outcomes to ensure that all of the work was explicitly geared towards supporting Indias achievement of its development goals; the second would focus on selectivity to target limited resources to activities where assistance was welcomed and could be most effective; and the third was to substantially expand the role of the Bank as a knowledge provider and generator.
Kilde: www.worldbank.org
