HYDERABAD: The World Bank has sanctioned a fresh tranche of loan to Andhra Pradesh and showered praise on the Congress Government for "building on the economic and social reforms initiated by the previous Government."

It approved the Andhra Pradesh Economic Reform Credit/Loan, the third in the series of structural adjustment loans (SAL) renamed development policy loan to the tune of $200 million (about Rs. 900 crore) to the State. The loan was approved as the new Government that took over in May, 2004, placed emphasis on agriculture and irrigation along with continuing key reform initiatives of the past such as fiscal discipline, improving the investment climate, governance reforms and restructuring of public enterprises.

The new Government "has extended the reform programme to new areas, including liberalisation of agriculture markets, increasing access of the poor to land and credit and shifting public expenditure to build rural infrastructure," the Bank observed. According to the Project Information Document (PID) released by the bank, the loan comes after two structural adjustment loans approved earlier. The first loan of $250 million along with a grant of $100 million provided by U.K.'s Department For International Development (DFID)was given in March 2002, and the second loan of $220 million and DFID grant of $100 million in February 2004.

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