WB-INDIA 2 LAST

The loan money will provide piped water to 2.1 million
people and extend sanitation services to 1 million.

The money to the Public Banking sector and Powergrid from
the International Bank for Reconstruction and Development
(IBRD) has a 30-year maturity, including a 5-year grace
period. The IBRD loan to IIFCL has a 28 year maturity
including a 7.5-year grace period.

The credit from the International Development Association
(IDA), the World Bank's concessionary lending arm, carries a
0.75 per cent service fee, a 10-year grace period, and a
maturity of 35 years.

Noting that this is a crucial time to support India,
Roberto Zagha, World Bank's India Director, said: while the
worst of the crisis seems to be behind us, doubts linger about
the strength of the comeback, partly because the strength of
the global recovery is uncertain.

"Today's support will help maintain credit growth and
continued infrastructure investments. Supporting
infrastructure is particularly important during the current
crisis, not just to sustain the domestic economy at a time of
reduced global demand, but even more to lay the foundations
for stronger future growth," he said. PTI