World Bank is helping the government to put in place a viability gap funding for infrastructure, while planning to step up loan assistance to $3.35 billion annually in the coming years.
The bank is also keen to lend funds to the Infrastructure SPV when the company is set up, World Bank country director Michael Carter indicated today.
World Bank is slated to extend 200 million dollars each to two states -- Andhra Pradesh and Orissa -- next fiscal, Carter said.
As part of its Country Assistance Strategy, he said the bank is likely to extend close to 3.35 billion dollar next fiscal. World Bank has extended close to $3 billion in 2004-05 and another $2.7 billion in this fiscal.
Of the total $3.35 billion, World Bank will extend $2.15 billion through IBRD and give another 1.2 billion soft loans from the IDA window.
Apart from providing funds, World Bank is helping the Finance Ministry in capacity building for viability gap funding mechanism for mega projects.
In the Budget for 2005-06, the government has earmarked Rs 1,500 crore for viability gap funding and another Rs 10,000 crore from the Infrastructure SPV to speed up infrastructure development.
{{/usCountry}}In the Budget for 2005-06, the government has earmarked Rs 1,500 crore for viability gap funding and another Rs 10,000 crore from the Infrastructure SPV to speed up infrastructure development.
{{/usCountry}}Apart from infrastructure, Carter said: "We have been asked to give substantial loans for drinking water projects."