WB to lend additional $3 bn to India
The World Bank has agreed to help India with $3 billion of increased investment as the global financial crisis undermines private financing for the country’s much-needed infrastructure agenda.
Part of the additional financing include a line of credit to the India Infrastructure Finance Company Limited (IIFCL) to help finance private-public partnerships in infrastructure; funding for the Small Industries Development Bank of India (SIDBI) to provide credit to small and medium enterprises, and assistance to PowerGrid to expand its transmission network.
The development institution has provisioned this additional amount as part of the total financing envelope of $14 billion proposed in the India Country Strategy over 2009-2011.
Other areas which could receive support from additional financing include the National Housing Bank and the recapitalisation of state banks. India was the largest borrower from the World Bank’s International Development Association (IDA) and second largest borrower from its International Bank for Reconstruction and Development (IBRD) in fiscal 2008.
The World Bank’s $15.1 billion-portfolio in the country covers 61 active investment projects.