The Hindu Business Line : India eyes World Bank aid for Bharat Nirman project

The Finance Minister, Mr P. Chidambaram, with the World Bank President, Mr Paul D. Wolfowitz, at the North Block in the Capital on Friday. - Kamal Narang

New Delhi , Aug. 19

THE country is eyeing World Bank assistance to part-finance its ambitious Bharat Nirman project, which has been conceived to improve basic infrastructure in rural areas.

"We have mentioned that India could easily absorb something of the order of a billion dollar in the Bharat Nirman programme," the Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia, told reporters after a meeting with the visiting World Bank President, Mr Paul D. Wolfowitz, here on Friday.

The components of Bharat Nirman project are irrigation, roads, water supply, housing, rural electrification and rural telecom connectivity.

During his interaction with the Plan panel, the World Bank chief was briefed that India would need huge funds in the coming years, especially in the 11th Plan period, for the infrastructure development programme would also require external assistance.

A presentation was made about the status of infrastructure in the country, the growth in different sectors and the financing plans.

Earlier in the day, the World Bank President met the Union Finance Minister, Mr P. Chidambaram.

"We had a very good meeting. We discussed World Bank-funded development projects in the country and infrastructure projects including water," Mr Wolfowitz said after his meeting with Mr Chidambaram.

The World Bank President is also understood to have discussed the progress made by India towards the Millennium Development Goals, especially reduction in poverty levels.

Meanwhile, the World Bank has given $325-million loan assistance to Maharashtra for improving the State's irrigation system performance and enhancing the productivity of its water resources.

The loan agreement was signed here on Friday in the presence of Mr Wolfowitz and Mr Chidambaram.

Speaking at the agreement signing function, Mr Wolfowitz said, "One of the most important things I've been discussing with my hosts is how the World Bank can do more to support the critical challenge of scaling up rural infrastructure."

The World Bank chief said the Indian Government has recognised the importance of this task for the millions of citizens who live in the rural areas . "I hope this project - which is aimed at making every drop of water count in Maharashtra - can be an excellent example of development work making a real difference to people battling to improve their lives," Mr Wolfowitz said.

Mr Chidambaram said repair, renovation and restoration of water bodies was a national priority. "A national project has been launched that covers restoration of water bodies, either natural or man-made, directly linked to agriculture. The Maharashtra project supports our national objective as it covers rehabilitation and modernisation of irrigation schemes as well as improving the safety of dams," he said.

The Maharashtra Water Sector Improvement Project is expected to address some of these issues by promoting multi-sectoral planning and sustainable development of scarce water resources and help improve the irrigation service delivery and agricultural productivity in the State.

The World Bank chief also had a luncheon meeting with the Prime Minister, Dr Manmohan Singh.

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