State seeks early release of WB loan

The 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 World Bank country director Roberto Zagha here, chief minister B S Yeddyurappa noted that the World Bank had sanctioned a loan of US $857 million for six state projects.

“Out of this amount, $475 million is yet to be released,” he said. “Besides the 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 the World Bank would hold discussions with the state government on loan requirements pertaining to water, highways and rural development projects.

"India has done extraordinarily well in weathering a global crisis which was the most severe in 70 years," Zagha told PTI here.

"India is fortunate to have had a macro economic management that it has," he said.

Noting that the global crisis was of unprecedented proportions and nature, he said India handled it remarkably well on fiscal and monetary fronts as also on issues relating to contraction in credit. "WB is very much appreciative of how India tackled the global crisis. We are very impressed. (Indian) Government has a situation very well in hand in the short term and the 11th Plan gives a very good perspective for the medium term," Zagha said.