For further queries, please contact:  In Delhi Sudip Mozumder (91 11) 2461-7241 smozumder@worldbank.org  New Delhi, December 18, 2008: The World Bank has agreed to help India with US$ 3 billion of increased investment as the global financial crisis undermines private financing for the country’s much-needed infrastructure agenda.  The development institution has provisioned this additional amount as part of the total financing envelope of US$ 14 billion proposed in the India Country Strategy over FY 2009-2011. The strategy, which is geared to help India fast track infrastructure development, support the country's seven poorest states, and respond to the financial crisis, was discussed by the Bank’s board last week in Washington DC.  Part of the additional financing can be put to work swiftly in some areas where the Bank is already engaged: including a line of credit to the India Infrastructure Finance Company Limited (IIFCL) to help finance private-public partnerships in infrastructure; funding for the Small Industries Development Bank of India (SIDBI) to provide credit to small and medium enterprises; and assistance to PowerGrid to expand its transmission network. Other areas which could receive support from additional financing include the National Housing Bank and the recapitalization of state banks, the details of which are yet to be discussed with the Government of India.  The Government of India had requested a total additional amount of US$ 5.6 billion over the next two years. Having provisioned the US$ 3 billion, the Bank said it would need to examine the balance US$ 2.6 billion and work with the Government over the coming weeks to clarify the details.  India was the largest IDA and second largest IBRD borrower from the Bank in fiscal 2008. The Bank's US$ 15.1 billion-portfolio in the country covers 61 active investment projects. During FY08, the Bank's Board approved US$ 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, US$ 1.3 billion came from IBRD and US$ 1.4 billion came as interest–free credits from IDA.  For more information on the Bank’s work in India, please visit http://www.worldbank.org.in   |
RSS