Three multilateral agencies -- the World Bank, UK's Department for International Development and the European Commission -- will provide $1 billion for the government's education project 'Sarva Siksha Abhiyan'.
World Bank on Thursday signed an agreement to offer $500 million, while the pacts with DfID for $300 million and European Commission for the remaining $200 million would be signed shortly.
The agreement for the education project, estimated to cost $3.5 billion or Rs 15,750 crore, was signed by World Bank country director Michael Carter and Ranjit Bannerji, joint secretary in the finance ministry in New Delhi on Thursday.
The Centre and state governments would provide the remaining $2.5 billion (Rs 11,250 crore) for the project that aims to achieve universal enrollment and completion of elementary education of children of 6-14 years of age by 2010.
"The project aims to reduce the number of out-of-school children by at least 90 lakh (9.0 million) by June 2007, to narrow the existing gender and social gaps and to enhance the quality of education for all students," an official release said.
The World Bank assistance will be in the form of IDA (International Development Association) loans repayable in 35 years including a grace period of 10 years.