World Bank to double loans to India

The bank would provide $2.15 billion through IBRD loans at commercial rates and another $750 million through its concessional lending arm International Development Agency, Patel said, adding the bank had provided $1.5 billion during the last fiscal. ‘‘There is scope for us to scale up the assistance in line with the CMP, which we have looked into very carefully,’’ he said.

World bank Country Director Michael Carter said the Bank would like to focus on relatively poorer states like Bihar, UP, Orissa and Jharkhand. Karnataka and Orissa are expected to get structural adjustment loans, he said, adding Andhra Pradesh has been provided $220 million a few months back. On the new state government’s plan to give free power to farmers, Carter said ‘‘it might not be a good idea since it has implications for the finances of the state.’’ However, he added that targetted subsidies could be helpful.

The bank estimated that states would require $500-900 million a year, while a bulk would go towards funding infrastructure, social sector projects, especially education and health. It was also considering several loans for projects in power, railways, roads and urban development. It would stress on improving effectiveness of government-sponsored programmes, fostering private sector-led growth and promoting health and education.

According to Patel, ‘‘An important emphasis of support would continue to be improved fiscal and public expenditure management that enables state and local governments to maintain or increase allocation towards high priority areas’’.