World Bank loans to Andhra will flow on: CM

Bank likely to sanction aid to proposed urban poverty project

Chief minister Y S Rajasekhara Reddy said that the flow of World Bank loans to Andhra Pradesh would not be affected though the bank has reservations about the state government's free power scheme to farmers.

Addressing a press conference after a luncheon meeting with the World Bank's country head Michael Carter, the chief minister said that the representatives of the multilateral lending agency were in fact very positive about the various initiatives of the state government.

"Yes, they are unhappy with our free-power scheme. But that does not prohibit the bank from considering sanction of loans to various programmes," he said while reiterating that his government would not accept any conditionalities which undermine the interests of the people.

Reddy also indicated that the bank is likely to sanction financial assistance to the proposed urban poverty and infrastructure project.

Referring to the World Bank's parameters on government expenditure, Reddy said that his government in fact took steps to reduce the revenue and fiscal deficit in the current annual Budget.

"Achieving fiscal prudence is our aim also," he pointed out. Basing on the feedback from MLAs and other elected representatives on the causes of suicides by farmers, the chief minister said that in almost 95 per cent of the cases the failure of bore wells was the single biggest reason for suicides.

"Repeated drilling in anticipation of finding water is leading the farmers to heavy indebtedness," he said while stating that his government is contemplating steps to restrain rig-owners from digging repeatedly without keeping in mind the possibility of finding water.

According to him, rig-owners would now onwards have to take permission of a committee before digging a bore well.

He disclosed that the government is actively working on a rural health insurance policy covering all the rural families cutting across farmers, agricultural labour and self-help groups.

The chief minister also said that the government is looking into the policy of bringing a strong legislation to contain the menace of spurious seeds, besides requesting the Centre to expedite a similar proposal pending before it for the past four years.

Giving details on the meeting with all the Parliament members from the state held earlier in the day, Rajasekhara Reddy said that he requested them to strive to get more help from the Centre according to the new priorities of the state government, including clearance of pending projects like the Hyderabad International Airport.