The World Bank will be roped in for the ambitious Rs 174,000 crore (Rs 1,740 billion) Bharat Nirman programme for developing rural infrastructure, with the government seeking a $1 billion loan from the multi-lateral institution.
World Bank President Paul Wolfowitz on Friday had a series of meetings with top finance ministry and Planning Commission officials, during which the government projected a higher funding need compared to the present $3 billion it gets annually.
The bank also agreed to provide a $325 million loan for a water project in Maharashtra, under a pact signed in the presence of Wolfowitz and Finance Minister P Chidambaram.
"One of the most important things I have been discussing with my hosts is how the World Bank can do more to support the critical challenge of scaling up rural infrastructure," Wolfowitz said.
Plan panel made a detailed presentation before the World Bank chief on the upcoming projects and the funding needs.
"We have mentioned that India could easily absorb something of the order of a billion dollar in the Bharat Nirman programme," Planning Commission Deputy Chairman Montek Singh Ahluwalia said when asked about the government's funding needs from the bank.
During the meeting Ahluwalia briefed Wolfowitz on the progress made in conceptualising the ambitious Bharat Nirman programme, status of infrastrucutre in the country, growth in different sectors of the economy and financing plans.
"We have said that this (Bharat Nirman) is certainly a flagship programme," he said, adding India would need huge funds over the next few years especially in the 11th Plan period (2008-13) for the infrastructure development programmes and wanted external assistance as well.
Wolfowitz, who met with North Block mandarins earlier in the day, discussed the progress of Bank funded projects in India and country's future loan requirements.
India wants World Bank to step up lending in the coming years mainly to finance infrastructure projects.
"We had a very good meeting. We discussed World Bank funded development projects in the country and infrastructure projects including water," Wolwowitz said, after a meeting with Chidambaram.
The World Bank chief also discussed about the progress made by India towards the Millennium Development Goals especially reduction in poverty levels.
Wolfowitz met Prime Minister Manmohan Singh over lunch and was scheduled to call on President A P J Abdul Kalam later.
The World Bank chief, who is on a four-day India visit, arrived on Wednesday and was in Hyderabad on Thursday where he visited some of the bank-funded projects in Andhra Pradesh.
Commenting on the water project in Maharashtra, he said: "I hope this project -- which is aimed at making every drop of water count in the state -- can be an excellent example of development work making a real difference for people battling to improve their lives."
Chidambaram said the ambitious project of repair, renovation and restoration of water bodies was a national priority.
The bank-funded project is expected to increase irrigation coverage by 22 per cent in the state and crop yields by 5-20 per cent. Farm income is also expected to rise by 49 per cent and about 33,610 families are expected to benefit from it.
© 2025