World Bank to open purse strings for UP projects

A three member WB team met UP industries and infrastructure development principal secretary Sanjiv Saran

The World Bank on Friday offered to fund improvement of industrial infrastructure and creation of new infrastructure for micro, small & medium enterprises (MSME) in Uttar Pradesh.

A three-member team comprising World Bank Lead Urban Specialist Barjor Mehta and Senior Country Economist Denis Medvedev met UP industries and infrastructure development principal secretary Sanjiv Saran here. They discussed a report on infrastructure and investment strategy for three sub-regional growth centres on the Eastern Dedicated Freight Corridor (EDFC).

The report has been prepared by CRISIL under the aegis of the WB for Agra-Firozabad, Kanpur-Lucknow-Unnao-Auraiya and Allahabad-Varanasi sub-regions. WB is focusing on Kanpur-Lucknow-Unnao-Auraiya sub-region.

The report contains study of infrastructural gaps to be filled in these sub-regions with high industrial and economic potential for effective and sustainable industrialisation.

Meanwhile, the multilateral funding agency has offered two options for funding: Development policy loan (DPL) and Programme-for-Results.

Development policy loans provide quick-disbursal to countries with external financing needs to support structural reforms.

The funds are released based on agreed actions taken by the government with regard to structural, financial sector and social policy reforms.

Programme-for-Results supports government programmes and links disbursement directly to the delivery of defined results with a focus on strengthening institutions.

Funds can only be used for environment conservation, rehabilitation or training of labour and not for hardware development.

WB is willing to invest in rejuvenation of industrial areas and creation of fresh plug-and-play facilities for MSMEs at virgin locations.

WB has already sanctioned a loan of $1.1 billion for the construction of a 393-km double line between the Mughalsarai–Bhaupur section under EDFC.

The proposed alignment of 1,840-km long EDFC starting from Punjab traverses UP via Khurja and ends at Dankuni in West Bengal.

Uttar Pradesh is the biggest beneficiary of EDFC project with the share of nearly 57 per cent, measuring 1,049 km. In UP, 40 new stations are proposed on this freight corridor, which would cross through 18 districts.

TWIN FUNDING OFFERS

Development Policy Loan

• Development Policy Loans provide quick-disbursal to countries with external financing needs to support structural reforms.
   
• The funds are released based on agreed actions taken by the government with regard to structural, financial sector and social policy reforms.

Programme-for-Results

• It supports government programmes and links disbursement directly to the delivery of defined results with a focus on strengthening institutions.
   
• Funds can only be used for environment conservation, rehabilitation or training of labour and not for hardware development.