Search the Internet          Tips  Sites: Finance, Investment

World Bank approves $665 mn in loans for India

The World Bank on Thursday approved $665 million in loans for four projects in India aimed at reducing poverty and improving transportation.

The projects approved by the bank's decision making board include a $250 million loan for Andhra Pradesh and a $100 million loan for Karnataka. Both loans back structural adjustments including fiscal reforms and efforts to make the government more transparent and efficient.

The loan for the Andhra Pradesh state is accompanied by a £65 million grant from Britain.

"There is broad agreement in India on the need for reforms at the state level to accelerate growth and poverty reduction," World Bank Country Director for India Edwin Lim said in a statement. "Both Andhra Pradesh and Karnataka are reform leaders among India's states."

Lim said both projects, "aim to help the two state governments reduce poverty more rapidly."

"If these states can establish a more stable fiscal position, boost their allocations to priority social sectors and function transparently and effectively, this will all contribute to a more rapid rate of poverty reduction and improvements in social indicators."

The bank also approved two transportation loans, one worth $255 million for Kerala, the other a $60 million loan for roads in the state of Mizoram.

Kerala, on India's southwest coast, has the highest rate of road accidents of any Indian state. The project is aimed at enhancing road capacity and providing safety programs. An estimated 1,600 kilometers of roads will be rehabilitated or expanded under the project over the next 5 years.

The Mizoram project will expand or rehabilitate over 700 kilometers of roads over the same period.

The World Bank hopes the poor will benefit from better roads because they will bring better access to schools and hospitals, lower costs of goods and services and better access to markets for farmers.

ALSO READ:
The Rediff Budget Special
Money

Tell us what you think of this report