WB approves $4.3 billion loan to India

New Delhi: The World Bank on Wednesday approved a loan package of 4.3 billion dollars to India to bolster the country`s economic stimulus programme.

World Bank Country Director for India Roberto Zagha said that this was a crucial time to support India. He said this through a videoconference from Washington.

The four loans are banking sector support loan (2 billion dollars), India's Infrastructure Finance Company Ltd (IFCL) (1.195 billion dollars), fifth power support project (1 billion dollar) and Andhra Pradesh Rural Water Supply and Sanitation Project (150 million dollars)

Zagha said the first three projects would help India sustain growth during the global economic crisis and lay the foundation for stronger growth in the coming years.

The two billion dollar Banking Sector Support is aimed at helping the government`s broad economic stimulus programme by enhancing the capital of select public sector banks.

The loan to IIFCL was to catalyse private financing for public-private partnerships in infrastructure and stimulate the development of a long-term local currency debt financing market. The Fifth Power System Development Project loan is aimed at addressing India's acute deficit of power. These loans would be financed with a maturity of 30 years.

September 23, 2009

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