The Orissa government will seek the third tranche of the World Bank loan for Orissa Socio Economic Development Programme (OSEP).The state finance department is preparing a concept note to avail the loan.
The concept note among others will specify the need for the loan, sectors for investment, pattern of the utilisation of the loan, fiscal restructuring and priority sector investment.
It is expected to be completed in the next couple of months, after which discussion will be held with the World Bank authorities, said R N Bohidar, Development Commissioner (DC), government of Orissa.
Talking to the media after discussion with a visiting team of World Bank officials, he said, Orissa availed $225 million under the second tranche of World Bank loan in August 2006.While the International Bank for Reconstruction and Development (IBRD) component was $150 million, the International Developemnt Association (IDA) component was $75 million.
Though the size of the third tranche of the loan to be sought by the state is not yet finalised, it may be closer to $250 million.
Stating that the inclusive growth will be the theme for third tranche of the World Bank loan, Bohidar said, the report submitted by the Regional Imbalance Enquiry Commission headed by Justice (retd.) S K Mohanty will be quite useful as backwardness has been accorded due weightage.
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A team of officials of the World Bank comprising Vukram Menon, M Nagararan and Alena Jinksa today met the development commissioner and discussed about the issues pertaining to the overall economic growth, infrastructural development, rural electrification and poverty reduction in Orissa among others.
The World Bank team reportedly wanted to know about the investment coming to the state and the measures being taken for making growth inclusive. It was informed that to ensure that the projects benefits the local people, the state government has told all the state PSUs working in the scheduled areas to spend 5 percent of their profit on the development of the periphery.
Similarly, the chief minister has written to the Prime Minister Manmohan Singh to direct the Central PSUs working in the scheduled areas for spending 5 percent of their profit for the peripheral development. Meanwhile, the state government is working on formulating guidelines for use of this fund which will ensure better public monitoring.
Besides, the state government intends to institute a study for better linkage between the industry and the local community, starting from the acceptability of the project.The government is seeking to know exactly the expectation of the people, so that they will have interest in promoting industries.
Alena Jinksa, a member of the team said, the bank will be happy to respond any proposal of the Orissa government. However, theere has been no specific proposal for the World Bank assistance at present.The team took stock of the developments taking place in Orissa and the discussions also involved methodical issues like estimation of Gross State Domestic Product (GSDP), she added.