Contacts In Delhi: Sudip Mozumder (91 11) 2461-7241/9810052117 e-mail: smozumder@worldbank.org In Washington: Erik Nora (202) 458 4735
enora@worldbank.org
World Bank President extends support to India to overcome growth constraints New Delhi, 2 November, 2007– Three World Bank loan/credit agreements amounting to US$ 944 million were signed in New Delhi today in the presence of visiting World Bank President, Robert B. Zoellick and the Finance Minister of India, Mr. P. Chidambaram. Also present on the occasion was Mr. Oscar Fernandes, Union Minister of Labour. The agreements were signed by Mr. Madhusudan Prasad, Joint Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of Government of India, and Ms. Isabel Guerrero, Country Director, India for the World Bank. The loan/credit agreements are for Strengthening Rural Credit Cooperatives Project for US$ 600 million loan and credit; India Vocational Education Training Project for US$ 280 million credit; and additional financing for the Karnataka Community Based Tank Management Project for US$ 64 million loan and credit. Speaking on the occasion the Finance Minister, Mr. Chidambaram, said that, “The three projects being signed today reflect Govt. of India’s priority in rejuvenating the rural economy. The project on Strengthening Rural Credit Cooperatives will significantly enhance farmer’s access to formal finance. The Vocational Education Training Project was a Budget announcement of 2004-05, strengthening of ITIs will enable India’s dynamic workforce in upgrading their skills to contribute to the country’s growth process. The Karnataka Community Tank Project would help restore and rehabilitate traditional water bodies and thereby unlock the huge potential they hold for improving agricultural production and livelihoods of the people.”
At the signing, Robert B. Zoellick, President of the World Bank said, “The three projects signed today reflect the Government of India's focus on revitalizing the rural economy and on removing skill gaps that could inhibit India's drive for inclusive and sustainable growth. The World Bank is committed to supporting these priorities.”
He further added “Reforming and revitalizing India’s rural cooperative credit institutions will provide millions of farmers access to affordable credit for their critical needs, be it for better quality seeds and fertilizers, or a better breed of cattle. The Vocational Training Project will help revamp India’s vocational training system, enabling India's young and growing workforce to attain multiple skills and continually upgrade their skill sets in a fast changing global economy. The ongoing Karnataka Tanks projectis helping farmers rejuvenate tanks, an integral part of the traditional village water bodies, which have slipped to disuse because of inadequate maintenance.”
Project Details:
Strengthening Rural Credit Cooperatives Project - US$ 600 million loan and credit supports the Government of India’s initiative to reform and revitalize the country’s rural cooperative credit institutions and is designed to transform access to financial services for India's poorest farmers. These institutions include some 31 State Cooperative Banks, 367 District Central Cooperative Banks and over 100,000 Primary Agricultural Credit Societies. India Vocational Training Improvement Project - US$ 280 million credit is being earmarked towards helping the Government of India improve the vocational training system through policy reform and by making the design and delivery of training more demand responsive by improving the quality and relevance of training in 400 eligible Industrial Training Institutes (ITIs). Karnataka Community Based Tank Management Project - US$ 64 million loan and credit in additional financing to the original project that has so far mobilized 1,518 Tank User Groups (TUG) to develop and manage some 1,681 irrigation tanks since April 25, 2002, when the original project was approved by the World Bank. The project will continue to improve rural livelihoods and reduce poverty by developing community-based approaches to improving and managing small reservoirs, locally known as 'tanks'.
Zoellick became the 11th President of the World Bank Group on July 1, 2007. Prior to joining the Bank, he served as Vice Chairman, International of the Goldman Sachs Group. Zoellick served as the Deputy Secretary of the U.S. State Department in 2005-06. From 2001-05, he served in the U.S. Cabinet as the U.S. Trade Representative.
The World Bank works with 185 member countries. India was the largest cumulative IBRD/ IDA borrower from the Bank in fiscal 2007, accounting for 15 percent of the Bank's new commitments worldwide. The Bank's current portfolio in the country comprises 68 active investment projects. During FY07, the Bank's Board approved US$ 3.7 billion in funding for 17 new projects for India spanning a range of development sectors including infrastructure, health and rural development. Of this, US$ 1.5 billion came from IBRD and US$ 2.25 billion came as interest–free credits from the International Development Agency (IDA). The total IFC portfolio amounts to US$2.4 billion in commitments; last year IFC committed over US$1 billion. ************************ |
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