The Hindu Business Line : Indians are best borrowers in the world: Chidambaram

THE UNION FINANCE MINISTER, Mr P. Chidambaram, and the Chief Minister, Dr Y.S. Rajasekhara Reddy, applaud as the World Bank representative, Mr Salman Zaheer (left), and the Union Joint Secretary, Mr Madhusudan Prasad (right), and the Andhra Pradesh Principal Secretary for Irrigation, Mr S.P. Tucker, exchange documents after signing an MoU for community-based water tank management project in Andhra Pradesh in Hyderabad on Friday. - H. Satish

Hyderabad June 8 The Union Finance Minister, Mr P. Chidambaram, today said that "Indians are the best borrowers in the world and there was no need to be apprehensive about their repayment capability."

Speaking at a function organised to sign an MoU between the Andhra Pradesh Government and the World Bank for a $189 million community-based tank management project here today, Mr Chidambaram said that both the services and manufacturing sectors in the country have been growing at double digit rate and the key to economy is agriculture and this called for a sustained effort.

Community Initiatives

To ensure a sustained agriculture growth, efficient water management is a must. Judicious use of water would ensure better productivity and profitability. And the World Bank support for this project would bring all-round development in Andhra Pradesh, he said.

Such community initiatives have the potential to improve agriculture production and thereby livelihood. The productivity would cover agriculture, horticulture, fisheries, livestock and other productive activities, he said. Earlier, the World Bank had signed a similar project with the Government of Tamil Nadu. The Finance Minister also hinted that the Rs 2,200-crore Nagarjunasagar irrigation project has been posed for loan assistance from the World Bank. The project report is now underway.

As per the memorandum of understanding, the tank project would cover 3,000 tanks with an outlay of Rs 1,044 crore. The Centre is providing 25 per cent financial support as grant and 75 per cent as loan through the World Bank.

The Chief Minister of Andhra Pradesh, Dr Y.S. Rajasekhara Reddy, said that the Central Government has been supportive of several important projects that the State Government had initiated to boost up the farm sector and this included the recent Krishna water supply scheme.

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