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World Bank approves $4.3-bn loan to India

Thursday, September 24, 2009 WASHINGTON: The World Bank today approved four loans worth $4.3 billion to help India finance its infrastructure programmes and further strengthen the capital base of state-run banks. The approved loan includes a budgetary support of $2 billion for capital infusion in select public sector banks to help them maintain credit growth.The approval also includes a $1.2-billion lending for the government-run India Infrastructure Finance Company Ltd (IIFCL) that will provide long-term funds to public-private partnership (PPP) projects in road, port and power sector.The Indian government has estimated that public sector banks will require at least $4.8 billion during 2009-11 to maintain credit growth over the medium term. For the infrastructure sector, the Indian Planning Commission has estimated that an investment of $500 billion is required during the Eleventh five-year plan (2007-12).The World Bank loan also includes $1 billion loan for Power Grid and $150 million for improving water supply and sanitation project in 2,600 villages of Andhra Pradesh.

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