The Hindu : Andhra Pradesh News : World Bank ready to extend Rs. 7510-cr. loans

Online edition of India's National Newspaper
Wednesday, May 18, 2005

Andhra Pradesh

Andhra Pradesh

World Bank ready to extend Rs. 7510-cr. loans

Special Correspondent

NEW DELHI: The World Bank has expressed its willingness to extend loans to the tune of Rs.7510 crores to the Andhra Pradesh Government for development of roads, irrigation and slum area development scheme.

The Chief Minister, Y.S. Rajasekhara Reddy, who met the World Bank Country Director, Michael Carter, here, discussed loans — Rs.1610 crores for structural adjustment, Rs. 1,300 crores for municipal infrastructure/slum development; Rs. 3000 crores for modernisation of right and left bank canal of Nagarjuna sagar project; and Rs. 1,600 crores for roads.

Dr. Reddy said that he had discussed the issue with the Union Finance Minister, P. Chidambaram, who had responded positively. Asked whether the World Bank imposed conditionality that water users association polls be held regularly, the Chief Minister said polls were a regular exercise.

The Chief Minister said while in the Opposition he never opposed taking loans from the World Bank but was critical of the manner in which the then Government had not taken people-friendly measures citing international funding body conditions. "World Bank loans carry cheaper interest rates, that is why we are going for them. We have not asked the World Bank for their approval when we have implemented free power policy."

He asserted that the World Bank was convinced with the policies of his Government and that loans from the world organisation would be accepted on conditions acceptable to the Government.

"We have made the World Bank see reason behind our move to give free power to farmers since they are in distress. We have convinced the World Bank and will not do anything that is against people's interest, otherwise we will not avail ourselves of loan," the Chief Minister said here in response to party policy in the wake of the rout faced by the Telugu Desam Party for implementing the international body's dictates.

Participating in an interactive session organised by the Indian Women Press Corps, Dr. Reddy said during the past year, his Government had changed focus by according priority to agriculture and irrigation.

But at the same time, it did not ignore infrastructure development and Information Technology.

"Unless the basics are addressed by building infrastructure both in the rural and urban areas, there can be no growth. In the next four years, Andhra Pradesh will have a new image and direction,'' he asserted.

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