World Bank approves $4.3 bn loan for India

I / Washington September 23, 2009, 10:53 IST

The World Bank has approved four projects worth $4.3 billion to India to bolster its economic stimulus programme and support the infrastructure sector.     

Of this $2 billion is banking sector support loan, which will provide budgetary support to India, helping it maintain its broad economic stimulus program, by enhancing the capital of select public sector banks.     

This loan will help maintain credit growth levels,support social banking and employment growth, and help strengthen the economic recovery ahead, the World Bank said in a media statement.     

Another loan of $1.2 billion to the India Infrastructure Finance Company (IIFCL) is designed to support its role to catalyze private financing for public-private partnerships (PPPs) in infrastructure and stimulate the development of a long-term local currency debt financing market, the Bank added.     

The World Bank also approved another $1 billion loan to the Power Grid Corporation of India for the Fifth Power System Development Project, designed to help address India’s acute deficit of power.     

Lastly, the Bank approved $150 million for the Andhra Pradesh Rural Water Supply and Sanitation Project, aimed at improving water supply and sanitation services in 2,600 villages across six districts of the State.