World Bank keen to double aid to India to $4 bn

The World Bank is eager to double its assistance to India to about $3-4 billion this fiscal, of which $2 billion could be for infrastructure development alone.

"We are ready to give $2 billion for India's infrastructure. The total assistance could be in the range of $3-4 billion in 2004-05," World Bank executive director C M Vasudev said on the sidelines of a seminar on SEZs in New Delhi on Thursday.

Vasudev, a former economic affairs secretary at the finance ministry, said India and China have persuaded the World Bank to create a new policy to ensure larger investment in infrastructure rather than focusing on social sectors.

As a result of the initiative, he said, the World Bank has put in place an Infrastructure Action Plan and is actively considering a number of projects in India.

The World Bank has identified railways, power, highways and rural roads, water and urban infrastructure as the key areas.

The bank has been approached for the Prime Minister's Gramin Sadak Yojana. The bank may come forth when the north-south and east-west expressway projects come up in the country, Vasudev said.

Some of the projects that are expected to get the World Bank funding include PowerGrid and NHPC.

The government is seeking the bank's assistance in modernising Indian Railways and improving its safety.

He said the bank has recently given $500 million for education and was considering funding the government's ambitious e-governance programme.