State to present reforms progress report to World Bank head

On the occasion of Wolfensohn’s visit, the government has already approved the controversial proposal to unbundle the crisis-ridden Maharashtra State Electricity Board (MSEB) despite strong opposition from trade unions.

When the state had approached the Bank for assistance of Rs 6,000 crore earlier to improve the transmission as well as distribution network and also to strengthen the board, the Bank had laid down the condition that unless the board was trifurcated, its application would not be considered.

Along with the application for assistance for MSEB, the Deshmukh government will also move revised applications for assistance for the Rs 6,000-crore Mumbai Urban Transport Project (II), projects implemented by Maharashtra State Road Development Corporation, drinking water supply schemes undertaken by the Maharashtra Jeevan Pradhikaran, and for a sewerage treatment plan of the BrihanMumbai Municipal Corporation.

“Though no immediate decision will be taken by the World Bank, we feel that following the meeting between the Chief Minister and the World Bank President, the process will be expedited. Atleast, certain misconceptions about the Democratic Front government will be removed,” the official pointed out.

Of course, even if in the ultimate course, the Bank agrees to fund projects, the moot question is whether the government will be in a position to accept the stringent conditions, particularly on abolition of subsidies proposed by the World Bank.

The meeting between Deshmukh and Wolfesohn assumes significant importance. When Deshmukh was at the Bank’s headquarters the last time, he was not able to meet Wolfesohn as the appointment could not be fixed. “We have only 45 minutes, during which Wolfesohn will have breakfast with the Chief Minister and also carefully watch our presentation on reforms. We are sure, it will yield results,” the official added.

The main area of concern for the Congress-led Democratic Front government is the current financial crisis. “We will have to inform the World Bank the measures we are taking to tackle the resource crunch,” he added.