World Bank to clear $2.6 bn loan for India

World Bank, which has decided to step up its exposure to India to $14 billion in the next three years, will soon clear a $2.6 billion special loan package.

Under the package, India Infrastructure Finance Company is expected to get $1.2 billion, SIDBI $400 million and Power Grid Corporation $1 billion.

The Bank is in advanced stages of approving this special package, World Bank's Economic Adviser (India) Giovanna Prennushi told reporters.

World Bank is also working on a $3 billion loan for recapitalisation of public sector banks.

In December last, the World Bank had decided to step up its exposure to India beginning 2009 to $14 billion from about $8.1 billion during the previous three years.

Till February this year, World Bank has approved five projects in India with a total commitment of $1.34 billion.

World Bank had sanctioned a $400 million loan earlier this year to Power Grid Corporation, the third largest transmission utility in the world.

World Bank's increasing exposure to the Indian infrastructure sector is in line with its thinking that such investments would help developing nations to tide over the global recession.