24.09.2009

The World Bank has recently approved USD4.3 bn for four projects in Indiadesigned to support the Government’s in­frastructure agenda and bolster itseconomic stimulus program. After a period of high economic growth — whichreached 9.7 percent in 2006–07 — the onset of the global financial crisisin 2008 saw India’s growth rate fall to about 5–6 percent in the fourthquarter of 2008–09. Although there is uncertainty about the pace of theeconomic recovery, current trends suggest that a growth rate of between 5.5 and6.5 percent for 2009–10 is realistic. Thus this support will help maintaincredit growth levels, support social banking and employment growth, supportnecessary infrastructure projects and help strengthen the economicrecovery ahead.

The USD4.3 bn is made up of USD2bn which will be used to enhance the capitalof select public sector banks, USD1.2 billion designed to support privatefinancing for public-private partnerships in (PPPs) in infrastructure andstimulate the development of a long-term local currency debt financing market,USD1 bn for the Fifth Power System Development Project, and lastly USD150million for the Andhra Pradesh Rural Water Supply and Sanitation Project.

For more information please go to: http://www.worldbank.org.in