World Bank aid to fall short by $500 mn

The World Bank is expected to extend $ 2.5 billion assistance to India during the current financial year as against the annual target of $3 billion for the period 2004-07.

"This fiscal, our assistance would be about $ 2.5 billion. Our thrust areas are infrastructure, human resource development and rural livelihood," World Bank country director Michael Carter said on the sidelines of a function.

It had recently drawn up its country assistance scheme, which envisages an assistance of up to $ 3 billion annually, totalling $12 billion in four years.

The World Bank is on an advanced preparatory work for extending $ 300-500 million to PowerGrid for the National power transmission system. NHPC is also in talks with the multilateral agency for assistance for its expansion plans.

Another $600 million is expected to be allocated to NHAI over the next few months for completing the Lucknow-Muzaffarpur stretch of the golden quadrilateral project, Carter said.

He said the World Bank was also eager to fund rural road and electrification projects in the country. The multilateral agency intends to run a pilot project on rural electrification in some states before extending it across the country.

The World Bank is also in talks with the government for providing assistance for e-governance projects. On assistance towards social sectors, Carter said the World Bank provided $ 500 million for the universal education scheme "" Sarva Shiksha Abhiyan "" last fiscal.

"Similar assistance is under our consideration for India's reproductive and child health programme," he said, adding the loan could be about $ 300 million.

The bank is also planning to raise the allocation for schemes related to Aids, tuberculosis, malaria and polio.

Carter said it was necessary to improve rural drinking water supply as it had a positive bearing on health.