The Hindu Business Line : World Bank to step up assistance programme

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World Bank to step up assistance programme

Our Bureau

Talks on with four States for new infrastructure projects

The road ahead
The Bank will concentrate on roads, irrigation, hydel generation
The process of streamlining the functioning of SEBs is important as this holds the key for additional investments.

Hyderabad , May 14

The World Bank is poised to step up its assistance programme in India that which could potentially go up to $3.5 billion across sectors this year.

While there is a shift in terms of its exposure in certain sectors, the Bank has begun to provide State budget support loans to Andhra Pradesh and Orissa and is in parleys with four States for new infrastructure projects.

The Lead Energy Specialist, South Asia Energy and Infrastructure, World Bank, Mr Salman Zaheer, said the Bank's focus shift is in terms of sectors within infrastructure into roads, irrigation and hydel generation.

Speaking on the theme Power supply— Challenges in efficient delivery, at a World Bank-Press Institute of India Workshop for the media, Mr. Zaheer said that India has set a target of adding 60,000 MW of power by the year 2012. If this target were to be achieved, it needs to expedite not just work on new projects but also strengthen the transmission and distribution (T&D) network, while streamlining the functioning of the State Electricity Boards.

SEBs functioning

The process of streamlining the functioning of SEBs is important as this holds the key for additional investments. It is estimated that at least $100 billion (about Rs 450,000 crore) would be required for the power sector alone. This includes Rs 2,70,000 crore for generation and about Rs 1,80,000 crore for transmission and distribution.

One of the challenges confronting India is with regard to refurbishing and modernising about 20,000 MW of existing thermal capacity, and the need to revitalise a large workforce in the country, as the sector seeks to expand.

The sector is a conduit for about Rs. 20,000 crore of poorly accounted subsidies each year from both budget and cross-subsidies. Unless this is addressed, investments would be harder to come by, he explained.

Consultant role

Apart from supporting some hydel projects in the country, the Bank is in parleys with four States for State utility development and reform process. "We are also in the process of finalising plans to be consultants for the West Bengal Government for governance structure and Andhra Pradesh is seeking funds for irrigation sector (about $ 1 billion)", he said.

"As a part of the ongoing engagement, we exploring options to be part of the last mile works in the Rajiv Gandhi Grammena Sadak Yojana," he said.

Referring to India's carbon emission concerns, Mr. Zaheer said the power sector accounts for about 60 per cent of carbon emissions and this called for a concerted effort and significant investments to bring this down.

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