The World Bank, in a bid to give a push for India’s various projects in the 11th five year plan, has proposed a lending program of $14 billion for the next three years (2009-12). Of the $14 billion, which is being planned under the World Bank’s new strategy for India, $9.6 billion is from the International Bank for Reconstruction and Development (IBRD) and $4.4 billion (SDR 2.982 billion equivalent at the current exchange rate) from the International Development Association (IDA). The assistance is mainly to fast-track much-needed infrastructure development and to support the country’s seven poorest states achieve better living standards for their citizens. The World Bank board at its meeting held on December 11, gave its approval for the proposed assistance.
India was the largest IDA and second largest IBRD borrower from the Bank in fiscal 2008. The Bank’s $15.1 billion-portfolio in the country covers 61 active investment projects. During FY08, the Bank’s board approved $2.7 billion in funding for 9 new projects for India spanning a range of sectors including infrastructure, education, health and rural development. Of this, $1.3 billion came from IBRD and $1.4 billion came as interest–free credits from IDA.The World bank economic adviser Giovanna Prennushi in a release said in the seven low income states - Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh,Orissa,Rajasthan,and Uttar Pradesh—the Bank Group’s focus will be on poverty reduction and helping these states achieve the Millennium Development Goals.Support to middle-income states will be on two fronts: fighting poverty in the lagging areas of these states, and addressing the challenges emerging from rapid growth, compounded now by the global economic downturn. The new strategy will support some of India’s middle-income states like Andhra Pradesh, Karnataka, Punjab, Tamil Nadu, Haryana, Gujarat, and Maharashtra.It will help them explore and share innovative approaches to reducing poverty: one such example is the AP’s Indira Kranti Patham, which empowers millions of poor women through self-help groups.The Bank Group will continue to support policy and institutional changes in central government and the expansion of national programs.One such example is the support for India’s public education system, the Sarva Siksha Abhiyan (SSA).Schools are now accessible and the program has achieved gender equity. Under the next phase, Bank support will focus on the quality of education. Another example is the Bank’s continued support to PowerGrid Corporation of India, a leading electric transmission network in India.
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