The Hindu Business Line : World Bank clears $14-b lending to India for 2009-12

New Delhi, Dec. 12 The World Bank Group has cleared India Country Strategy 2009-12 that envisages lending program of $14 billion for the next three years. The institution’s board discussed the Country Strategy at its meeting in Washington on December 11.

Of the $14-billion assistance, about $9.6 billion will come from the International Bank for Reconstruction and Development (IBRD) and $4.4 billion will come from the International Development Association (IDA).

A World Bank release said the assistance would be tailored both to fast track the much-needed infrastructure development and to support the country’s seven poorest States achieve better living standards for their citizens.

In the seven low-income States — Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa, Rajasthan, and Uttar Pradesh — the Bank Group’s focus will be on poverty reduction and helping them achieve the Millennium Development Goals.

The strategy is guided by the priorities of the Central Government as expressed in the Eleventh Five-Year Plan, the release added.

Support to middle-income States will be on two fronts: fighting poverty in the lagging areas of these States, and addressing the challenges emerging from rapid growth, compounded now by the global economic downturn. The new strategy will support some of India’s middle-income States such as Andhra Pradesh, Karnataka, Punjab, Tamil Nadu, Haryana, Gujarat, and Maharashtra.

India is looking to avail itself of a total annual assistance of $6 billion from the World Bank for the financial year ending June 2009, as against previous year’s level of $3 billion.

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