World Bank approves $4.3 bn loan for infrastructure in India

Lalit K Jha

Washington, Sep 23 (PTI) The World Bank has approved four
projects worth USD 4.3 billion to India to bolster its
economic stimulus programme and support the infrastructure
sector.

Of this USD 2 billion is Banking Sector Support Loan,
which will provide budgetary support to India, helping it
maintain its broad economic stimulus programme by enhancing
the capital of select public sector banks.

This loan will help maintain credit growth levels,support
social banking and employment growth, and help strengthen the
economic recovery ahead, the World Bank said in a media
statement.

Another loan of USD 1.2 billion to the India
Infrastructure Finance Company Ltd (IIFCL) is designed to
support its role to catalyse private financing for
public-private partnerships in (PPPs) infrastructure and
stimulate the development of a long-term local currency debt
financing market, the Bank said.

The World Bank also approved another USD 1 billion loan
to the Power Grid Corporation of India for the Fifth Power
System Development Project. It is designed to help address
India's acute deficit of power, the bank said.

Lastly, the Bank approved USD 150 million for the Andhra
Pradesh Rural Water Supply and Sanitation Project, aimed at
improving water supply and sanitation services in 2,600
villages across six districts of the State. MORE PTI