World Bank to lend $14 bn to India for infra projects

The World Bank has said it will provide $14 billion to India over the next three years to facilitate infrastructure development projects and to achieve the Millennium Development Goals.

The World Bank Group's new Country Strategy for India, discussed by the Institution's board, envisages a total proposed lending program of $14 billion for the next three years, the World Bank said in a statement.

The bulk loan offered to India is for developing its infrastructure projects and to achieve the Millennium Development Goals.

"The World Bank Group is tailoring its assistance to India both to fast-track much-needed infrastructure development and to support the country's seven poorest states achieve better living standards," the Bank said.

Further, part of the loan would be spend in the seven low-income states -- Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa, Rajasthan, and Uttar Pradesh -- to support the poverty reduction programmes.

Meanwhile, World Bank Economic Adviser Giovanna Prennushi said: "The strategy is designed to boost support to these states, but also not to forget about the poorest people in India's middle income states."

The new strategy will support some "middle-income states" (as per global standards) like Andhra Pradesh, Karnataka, Punjab, Tamil Nadu, Haryana, Gujarat, and Maharashtra.

However, the Bank will closely scrutinise these developmental projects. "The World Bank and the government will jointly implement a more rigorous project selection process than in the past," World Bank acting Country Director for India Rachid Benmessaouds said.

India had borrowed $2.7 billion for funding nine projects in sectors, including infrastructure, education, health and rural development.