Industry & Economy
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Natural Calamities
$450-m IDA credit for TN likely soon
Our Bureau
New Delhi
,
April 6
THE World Bank is in talks with the Centre and the Tamil Nadu Government for finalising a $450-million International Development Association (IDA) credit for emergency reconstruction of properties hit by the tsunami, Mr Michael F. Carter, Country Director, India, World Bank, said here today.
"We expect the negotiations for the IDA credit to be completed in the next few days.
"The board of the bank may give its approval in May. Apart from the $450 million, we are also looking at reallocation of existing assistance of $60 million to the tsunami project," Mr Carter said at a meeting with members of the Forum of Financial Writers.
Besides Tamil Nadu, the Union Territory of Pondicherry would also receive a portion of the IDA credit.
Mr Carter said that the tenure of the IDA credit would be 35 years and was likely to attract an interest rate of 0.75 per cent.
Commenting on growth rate of the economy, Mr Carter said that India had the potential to grow at 8 per cent per annum. He, however, held that rapid growth would depend on adjustments in fiscal position.
"Its not sustainable for India to continue with revenue deficits.
"It is important to have revenue surplus and there is also need to increase public investment," he said.
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