World Bank approves $4.3-bn loan for India
The World Bank has approved $4.3 billion loan for India to help finance infrastructure projects and support its economic stimulus programme.business Updated: Sep 23, 2009 15:08 IST
The World Bank has approved $4.3 billion loan for India to help finance infrastructure projects and support its economic stimulus programme.
"This is the crucial time to support Indian economic recovery," said World Bank country director for India Roberto Zagha.
"This money will be directed towards four projects," Zagha told reporters in a videoconference on Wednesday morning.
Of the total loan, World Bank said it would provide $2 billion to India's banking sector designed to expand the volume of credit available to firms.
The bank also sanctioned $1.2 billion for the India Infrastructure Finance Co for financing public-private partnerships in infrastructure and to stimulate the development of a long-term local currency debt financing market.
In addition, the World Bank approved $1 billion to address India's acute power shortages by assisting the PowerGrid Corp, the national electricity distribution company, with its investment programme after a freeze in overseas lending.
The bank also provided $150 million to Andhra Pradesh to improve water supply and sanitation services for 2,600 villages across six districts.
The loans are part of the World Bank's $14-billion crisis-related lending for Asia's third-largest economy over three years through 2012.