World Bank to lend India infra, aid funds
The World Bank has said it will lend India $14 billion by 2012 to help the country overhaul its creaking infrastructure and increase living standards in its poor states.
The government has estimated it needs $500 billion over the five years to 2012 to upgrade infrastructure such as roads, ports, power and railways.
“Under the strategy, the bank will use lending, dialogue, analytical work, engagement with the private sector, and capacity building to help India achieve its goals,” the World Bank said on its website.
The International Bank for Reconstruction and Development would lend $9.6 billion and the International Development Association would make available $4.4 billion of funding.
Only 30% of India’s state highways have two lanes or more, and the majority is in poor condition, the bank said.
Electricity generation capacity has grown at less than 5% in the past five years, much slower than overall economic growth of about 8% over the same period. The funds would also be used to help reduce poverty in seven low-income states; Bihar, Chhatisgarh, Jharkand, Madhya Pradesh, Orissa, Rajasthan and Uttar Pradesh.