Karnataka presses for early release of $1.175 bn WB loan

Karnataka government today pushed for early clearance of loans to the tune of $1.175 billion that it has sought from the World Bank to take up various projects in the state.

In a meeting with WB Country Director Roberto Zagha here, Chief Minister B S Yeddyurappa noted that the WB had sanctioned a loan of $857 million for six state projects.

"Out of this amount, $475 million is yet to be released," he said.

"Besides government of Karnataka has submitted three more projects (relating to water supply and sanitation) worth $700 million", Yeddyurappa said and sought release of the loan at the earliest.

On the nature of discussions, Zagha told reporters: "We are trying to understand Karnataka's development priorities and see how best we can partner."

He said WB would hold discussions with the state government on loan requirements pertaining to water, highways and rurual development projects.

Chief Secretary Sudhakar Rao and senior officials of the Finance Department were present at the meeting.