The World Bank’s financial commitment to India will continue to be in the range of $5 billion a year, according to Onno Ruhl, country director, World Bank. Between 2010 and 2014 (June-July period), the World Bank’s financial commitment peaked in 2010 when it committed nearly $9.3 billion to India. It was the lowest in 2013, when the Bank approved $1.3 billion for development projects in the country.
“We intent to work with the new government in India based on their priorities. Our commitment to India is the range of $5 billion every year, and that is something we aspire to continue,” said Ruhl during a field trip to Ghatakpukur, South 24 Parganas in West Bengal, to visit the microfinance operations of Bandhan.
During the 12-month period between July 2013 and June 2014, the World Bank had made financial commitments to the tune of $5.2 billion in India. In 2014, one of the biggest projects approved by the World Bank in India was the Eastern Dedicated Freight Corridor Project-II, in which the World Bank has approved $1100 million, against the project cost of $1,650 million. Another big project approved by the World Bank was on elementary education ($1,006.20 million).
“We will have a strong commitment to India going forward. If they (government) have good projects, we will definitely consider financing them,” said Ruhl when asked if the World Bank would revise its commitments upwards in 2015.
Support to Bandhan to continue
The World Bank would continue to support Bandhan through fund infusion once the West Bengal-based microfinance institution turns into a bank. “We have been supporting Bandhan from the beginning. Now it has to go through the process of becoming a bank. Our intention is to stay engaged and support it,” said Ruhl.
