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World Bank to loan Rs 150 billion to Uttar Pradesh

Sharat Pradhan in Lucknow

The World Bank has approved a loan of Rs 150 billion for various development projects in the state.

The loan would be utilised particularly for schemes in the energy, irrigation, education and benefit sectors, besides development of roads in the state.

A formal announcement to this effect came following a prolonged meeting between World Bank country director Edward Lim and Uttar Pradesh Chief Minister Kalyan Singh.

While a Rs 40 billion loan was sanctioned for certain power projects, a sum of Rs 50 billion had been earmarked for irrigation projects. According to a state government spokesman, Rs 16 billion will go towards reconstruction of roads and highways, while the remaining amount will be invested in health, primary education and allied areas.

Announcing the World Bank's approval of the loan, Lim appreciated the state government's efforts in brining down the ''non-productive" expenditure. UP's chief secretary Yogendra Parain told Rediff On The NeT, "The World Bank team led by Mr Lim did take note of the economic downfall that the state had experienced over the last 9, 10 years. Yet the government is committed to improving financial discipline and management, besides increasing capital expenditure for development."

The World Bank team has assured the chief minister all possible help for restructuring of the UP economy in the long run, Parain said. "The chief minister has assured Mr Lim of the state government's full co-operation in abolishing unnecessary controls and cutting down redtape to accelerate the pace of state's development.''

UNI