23-Apr-2022: Finance Minister Smt. Nirmala Sitharaman meets World Bank President Mr. David Malpass in Washington D.C.

Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman and World Bank Group President Mr. David Malpass met in Washington D.C., today, to discuss various issues, including India’s continued recovery from COVID-19 pandemic; impact of the Russia-Ukraine conflict on the world economy and India in particular; economy and role of the WBG; Single Borrower Limit and exploring the possibility of Guarantees from other  nations, India’s G20 Presidency and World Bank's leadership in India after CD’s (Country Director) departure.

The Finance Minister stated that India’s pandemic response has focused on the twin goals of saving lives and livelihoods. India has been successfully running world’s second largest vaccination programme, administering more than 1.85 billion doses of vaccine.

Smt. Sitharaman mentioned that India remains concerned about the risks to global recovery due to rising uncertainty amidst enhanced geopolitical tensions.

The Finance Minister suggested that the multilateralism has become more critical as the world is undergoing a phase of exceptional uncertainty. On account of the pandemic and the recent geo-political developments, there is a need for the World Bank to come to the rescue of countries facing debt stress. In particular, the World Bank needs to pay special attention to Sri Lanka, which is facing an unprecedented economic situation.

Smt. Sitharaman highlighted the India’s roadmap for infrastructure development and look forward to World Bank’s continued support for financing investments for the National Infrastructure pipeline and Gati Shakti programme.

10-Mar-2022: India and World Bank sign $125 million Loan to support access to Social Protection Services in West Bengal

The Government of India, the Government of West Bengal, and the World Bank signed a $125 million IBRD loan to support efforts to help poor and vulnerable groups access social protection services in the state of West Bengal.

West Bengal runs more than 400 programs that provide social assistance, care services, and jobs. Most of these services are offered through an umbrella platform called Jai Bangla. The West Bengal Building State Capability for Inclusive Social Protection Project will support these interventions at the state level, with particular focus on vulnerable groups such as women, tribal and scheduled caste households, and the elderly, as well as households in the state’s disaster-prone coastal regions.

The Department of Economic Affairs, Ministry of Finance stated that, “The COVID-19 pandemic has highlighted the need to have seamless systems in place to deliver inclusive and equitable social protection in times of crisis. This project will focus on building the capabilities of the state government to expand coverage and access to social assistance and targeted services for poor and vulnerable groups within the State.”

The agreement was signed by Shri Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs, Ministry of Finance on behalf of the Government of India; Shri Sudip Kumar Sinha, Secretary, Finance Department on behalf of the Government of West Bengal, and Mr Junaid Ahmad, Country Director, India on behalf of the World Bank.

A recent survey found that while food and in-kind transfers reach most poor and vulnerable households in West Bengal, the coverage of cash transfers is weak. Access to social pensions by the elderly, widows, and disabled persons is also weak due to cumbersome application processes and a lack of automated systems for application and eligibility verification.

Over the next four years, the project will help strengthen the state’s capability to expand coverage and access to social assistance and to deliver cash transfers for the poor and vulnerable through a consolidated social registry.

West Bengal faces challenges related to manual data entry, inconsistent beneficiary data across departments, and a lack of data storage and data exchange protocols. The project will help digitize the state’s unified delivery system, the Jai Bangla platform, to help consolidate disparate social assistance programs and speed the delivery of social pensions to vulnerable and poor households.

The project will also support the creation of a tele-consultation network for social care services, complemented by a cadre of case management workers who can help households with advice on eldercare and links to health services and facilities. It will also create an institutional platform to improve coordination and effectiveness of government interventions to address the state’s low participation of women in the labour force.

18-Feb-2022: Govt. of India, World Bank sign loan agreement of $115 million for implementation of “Rejuvenating Watersheds for Agricultural Resilience through Innovative Development” (REWARD) Project

The Government of India, the State Governments of Karnataka and Odisha and the World Bank have signed a $115 million (INR 869 crore) Programme (Rejuvenating Watersheds for Agricultural Resilience through Innovative Development Programme) that will help national and state institutions adopt improved watershed management practices to help increase farmers’ resilience to climate change, promote higher productivity and better incomes.

The Government of India has committed to restoring 26 million hectares of degraded land by 2030 and doubling farmers’ income by 2023. Effective watershed management can help enhance livelihoods in rainfed areas, while building a more resilient food system. In this context, the new program will help the participating state governments in their efforts to transform watershed planning and execution and adopt science-based planning that could be replicated across the country. It will also help the participating and others states to adopt new approaches to watershed development.

The COVID-19 pandemic accentuated the need for sustainable and risk-averse agriculture in India which both protects farmers from climate uncertainties and strengthens their livelihood. While a robust institutional architecture for watershed development already exists in India, renewed focus on science-based, data-driven approaches implemented through this project can offer new opportunities for farmers in the face of climate change.

India has one of the largest watershed management programs in the world. This programme will further advance this progress by developing and applying comprehensive spatial data and technologies, decision support tools, and knowledge exchanges.

The International Bank for Reconstruction and Development (IBRD) financing will support Karnataka with $60 million (INR 453.5 crore), Odisha with $49 million (INR 370 crore), and the remaining $6 million (INR 45.5 crore) will be for the central government’s Department of Land Resources. The $115 million (INR 869 crore) loan has a maturity of 15 years, including a grace period of 4.5 years.

23-Nov-2021: India & World Bank sign loan agreement to improve quality of learning for over 50 lakh students across Andhra Pradesh

The Government of India, Government of Andhra Pradesh and the World Bank on 18th November 2021 signed the legal agreements for $250 million for a project which aims to improve quality of learning for over 50 lakh students in the state of Andhra Pradesh.

Students from all grades and stages of school education will benefit from the project. The beneficiaries are about 40 lakh students (between the age of six and fourteen) in over 45,000 government schools, and over 10 lakh children (between the age of three and six) enrolled in Anganwadis (Integrated Child Development Centers), and about 1,90,000 teachers, and more than 50,000 Anganwadi workers. 

The Supporting Andhra's Learning Transformation Project will encourage professional development of teachers; provide remedial learning courses for children impacted by the COVID-19 pandemic; and pay special attention to students from marginalized groups, including children with special needs, scheduled tribes, and girls.

The Department of Economic Affairs, Ministry of Finance, stated that “Providing universal access to quality education is central to India's economic and social development. The Project will support the state of Andhra Pradesh in fulfilling its vision of transforming government schools into vibrant institutions focused on foundational learning for young children, including addressing learning losses for children impacted by the COVID-19 pandemic.”

The agreement was signed by Shri Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs, Ministry of Finance on behalf of the Government of India; Mr. Budithi Rajasekhar, Principal Secretary, Department School Education on behalf of the Government of Andhra Pradesh; and Mr. Junaid Ahmad, Country Director, India on behalf of the World Bank.

The state has adopted a new competency-based teaching-learning approach. The project will improve teaching practices through classroom-based mentorships, need-based teacher training for teachers of all grades and subjects, Personalized Adaptive Learning (PAL) methods, and other forms of remedial education linked to standardized school-based assessments.

Developing the institutional capacity of schools for delivering these services will go a long way in building community confidence and improving the learning environment. The project will help with better maintenance of school facilities, support involvement of parents in school management and monitoring, make data available, and enhance school safety.

The focus on foundational learning would be through short-term in-service training courses for Anganwadi workers and early grade (Grade 1 and 2) teachers and the supply of pedagogically appropriate Teaching Learning Material (TLM) across these centres and schools. Such attention to foundational learning will improve the readiness of schools in preparing children with the cognitive, socio-behavioural, and language skills needed for future labour markets. The project will introduce a one-year preschool-level course in 3,500 schools in the tribal blocks. It will help address the issue of low learning levels amongst the tribal community.

With the ongoing COVID-19 pandemic, home-based learning opportunities for students are of top priority for the state. Given the low availability of digital devices amongst students, the focus will be on developing physical learning kits and content for television and radio broadcasts. It will help in reducing the learning losses that children are likely to face due to school closures because of the ongoing pandemic, future natural disasters, or other disruptions related to climate change.

1-Nov-2021: India and World Bank sign agreement to strengthen health systems in Meghalaya

Government of India, the Government of Meghalaya and the World Bank signed a $40 million health project for the state of Meghalaya on 28th October 2021. project will improve the quality of health services and strengthen the state’s capacity to handle future health emergencies, including the COVID-19 pandemic.

The Meghalaya Health Systems Strengthening Project will enhance the management and governance capabilities of the state and its health facilities; expand the design and coverage of the state’s health insurance program; improve the quality of health services through certification and better human resource systems; and enable efficient access to medicines and diagnostics.

All 11 districts of the state will benefit from the project. It will also benefit health sector staff at the primary and secondary levels by strengthening their planning and management capabilities and building their clinical skills. The project will enable women to better utilize healthcare services at the community level.

The Department of Economic Affairs, Ministry of Finance stated that “Strengthening and expanding health care systems is a priority for the Government of India. The Project will enhance the management and quality of health services in the state. It will also help expand the coverage of health services and make it accessible and affordable to the poor and vulnerable in the state.”

The agreement was signed by Shri Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs, Ministry of Finance on behalf of the Government of India; Shri Ramkumar S, Joint Secretary, Department of Health and Family Welfare on behalf of the Government of Meghalaya; and Mr. Junaid Ahmad, Country Director, India on behalf of the World Bank.

The project will help strengthen the effectiveness of Meghalaya’s health insurance program known as the Megha Health Insurance Scheme (MHIS) – which currently covers 56% of the households. With its merger into the national Pradhan Mantri Jan Arogya Yojna (PMJAY), MHIS now plans to offer a more comprehensive package and cover 100% of the households. This will reduce barriers to accessing hospital services and preventing catastrophic out-of-pocket costs for poor families.

As a key strategy, the project will move towards a performance-based financing system where Internal Performance Agreements (IPAs) between the DoHFW and its subsidiaries would foster more accountability at all levels. This is expected to go a long way in improving the management of the system to deliver quality health services. The project will also focus on promoting synergy between various schemes and augment the capacity of the state insurance agency.

The project will invest in infection prevention and control for a more resilient response to future outbreaks, pandemics, and health emergencies.

Improved health services may also lead to an incremental increase in bio-medical waste. Any improper management of wastes including bio-medical waste and other hazardous wastes such as plastic waste and e-waste poses environmental risks. The project will invest in improving the overall ecosystem for bio-medical waste management (both solid and liquid waste). It will include segregation, disinfection, and collection while safeguarding the environment and improving the quality of health service and patient safety.

4-Aug-2021: India and World Bank sign $250 million project to make existing dams safe and resilient

The Government of India, the Central Water Commission, government representatives from 10 participating states and the World Bank today signed a $250 million project for long-term dam safety program and improving the safety and performance of existing dams across various states of India.

The Second Dam Rehabilitation and Improvement Project (DRIP-2) will strengthen dam safety by building dam safety guidelines, bring in global experience, and introduce innovative technologies. Another major innovation envisaged under the project, that is likely to transform dam safety management, is the introduction of a risk-based approach to dam asset management that will help to effectively allocate financial resources towards priority dam safety needs.

The project will be implemented in approximately 120 dams across the states of Chhattisgarh, Gujarat, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Odisha, Rajasthan, and Tamil Nadu, and at the national level through the Central Water Commission (CWC). Other states or agencies may be added to the project during project implementation.

The agreement was signed by Additional Secretary, Department of Economic Affairs, Ministry of Finance on behalf of the Government of India; representatives from the state governments of Chhattisgarh, Gujarat, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Odisha, Rajasthan, and Tamil Nadu; and Mr. Junaid Ahmad, Country Director, India on behalf of the World Bank.

World Bank support to dam safety in India includes the recently closed DRIP-1 ($279 million + $62 million Additional Financing) that improved the safety and sustainable performance of 223 dams in six states of India and one central agency.

Other important measures that DRIP-2 will support include flood forecasting systems and integrated reservoir operations that will contribute to building climate resilience; the preparation and implementation of Emergency Action Plans to enable vulnerable downstream communities to prepare for and enhance resilience against the possible negative impacts and risks of climate change; and the piloting of supplemental revenue generation schemes such as floating solar panels.

24-Jun-2021: Government of India signs $32 million loan with World Bank for improving healthcare services in Mizoram

The Government of India, Government of Mizoram and the World Bank have signed a $32 million Mizoram Health Systems Strengthening Project to improve management capacity and quality of health services in Mizoram, particularly for the benefit of under-served areas and vulnerable groups.

The project will strengthen the governance and the management structure of the Department of Health and Family Welfare (DoHFW) and its subsidiaries, improve the quality and coverage of services delivered by the state government health systems, and invest in a comprehensive Quality Assurance program which would enable quality certification of health facilities.

A key focus will be to strengthen the effectiveness of the state health insurance programme; build synergies with the Government of India’s Pradhan Mantri Jan Arogya Yojna (PMJAY); and thereby reduce financial barriers in accessing hospital services, prevent catastrophic out of pocket expenditure for health by poor families and expand coverage.

The Mizoram Health Systems Strengthening Project will benefit the people across all eight districts of the state. It will also benefit health sector staff, specifically at the secondary and primary levels, by strengthening their planning and management capacity along with building their clinical skills and competencies.

The agreement was signed on 17.06.2021 by Shri Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs, Ministry of Finance on behalf of the Government of India; Shri Eric Zomawia, Project Director, Mizoram Health Systems Strengthening Project on behalf of the Government of Mizoram; and Mr. Junaid Ahmad, Country Director, India on behalf of the World Bank.

As a key strategy, the project will move towards a performance-based financing system where Internal Performance Agreements (IPAs) between the DoHFW and its subsidiaries would foster more accountability at all levels. This is expected to go a long way in improving the management of the system to deliver quality health services. The project will also focus on promoting synergy between various schemes and augment the capacity of the state insurance agency.

The COVID-19 pandemic has had adverse effects on the delivery and utilization of essential health services in the state. The project will invest in infection prevention and control for a more resilient response to future outbreaks, pandemics, and health emergencies.

The project will also invest in improving the overall ecosystem for bio-medical waste management (both solid and liquid waste). It will include segregation, disinfection, and collection while safeguarding the environment and improving the quality of health service and patient safety.

23-Feb-2021: Government of India and World Bank Sign Project to Improve Quality of India’s Education in Nagaland

The Government of India, Government of Nagaland and the World Bank today signed a $68 million project to enhance the governance of schools across Nagaland as well as to improve teaching practices and learning environments in select schools.

The “Nagaland: Enhancing Classroom Teaching and Resources Project” will improve classroom instruction; create opportunities for the professional development of teachers; and build technology systems to provide students and teachers with more access to blended and online learning as well as allow better monitoring of policies and programs. Such an integrated approach will complement conventional delivery models and help mitigate the challenges posed by COVID-19. About 150,000 students and 20,000 teachers in the government education system in Nagaland will benefit from the statewide reforms in schools.

Shri C.S. Mohapatra, Additional Secretary, Department of Economic Affairs, Ministry of Finance, Government of India said that human resources development plays a key role in any development strategy and the Government of India has taken several concrete steps to transform the education landscape in India. He added that the education project in Nagaland will address the critical gaps faced by students and teachers and play an important role in the development of the state.

The agreement was signed by Shri Mohapatra on behalf of the Government of India; Mr. Shanavas C, Principal Director, Department of School Education on behalf of the Government of Nagaland; and Mr. Junaid Ahmad, Country Director, India on behalf of the World Bank.

Today, Nagaland faces challenges of weak school infrastructure, lack of opportunities for the professional development of teachers and limited capacity on the part of communities to partner effectively with the school system. The COVID-19 pandemic has further accentuated these challenges and created additional stress and disruptions to the state’s school education system.

Mr. Junaid Ahmad, World Bank Country Director in India said that even as the number of children attending school in India has increased over the last few years, there is a growing need to significantly improve learning outcomes to meet the demands of the labor market and fuel future growth. This project is designed to support the Government of Nagaland’s ongoing efforts to improve and develop a more resilient education system in the state.

Strengthening Nagaland’s Education Management and Information System (EMIS) will enable wider access to education resources; support professional development and performance evaluation systems for teachers and education managers; facilitate school leadership and better management; and support examination reforms.

Mr. Kumar Vivek, Education Specialist and the World Bank’s Task Team Leader for the project said that the project will support the state’s efforts to reform and improve the learning environment in schools so that they are child-centered; supportive of modern, technology-enabled teaching and learning approaches; and resilient to future shocks.

As part of that strategy, approximately 15 out of Nagaland’s 44 higher secondary schools will be developed into school complexes that operationalize the envisioned learning environment during the project period.

The $68 million loan from the International Bank for Reconstruction and Development (IBRD), has a final maturity of 14.5 years including a grace period of 5 (five) years.

22-Dec-2020: World Bank Signs $500 Million Project to Develop Green, Resilient and Safe Highways in India

The Government of India and the World Bank today signed a $500 million project to build safe and green national highway corridors in the states of Rajasthan, Himachal Pradesh, Uttar Pradesh and Andhra Pradesh. The project will also enhance the capacity of the Ministry of Road Transport and Highways (MoRTH) in mainstreaming safety and green technologies.

The Green National Highways Corridors Project will support MoRTH construct 783 km of highways in various geographies by integrating safe and green technology designs such as local and marginal materials, industrial byproducts, and other bioengineering solutions. The project will help reduce GHG emissions in the construction and maintenance of highways.

Dr C S Mohapatra, Additional Secretary, Department of Economic Affairs, Ministry of Finance stated that the Government of India is committed to environmentally sustainable development in its infrastructure projects. This project will set new standards in the construction of safe motorable roads. The selected stretches in the states of Uttar Pradesh, Andhra Pradesh, Rajasthan and Himachal Pradesh will also help improve connectivity and promote economic development.

The agreement was signed by Dr Mohapatra on behalf of the Government of India and Ms. Sumila Gulyani, Acting Country Director, India on behalf of the World Bank.

The ultimate objective of transport infrastructure is to provide seamless connectivity and reduce logistics costs. The Government of India has launched many investment programs in road sector infrastructure to strengthen and improve logistics performance. This project will also support analytics to map the freight volume and movement pattern on the National Highway network, identify constraints, and provide innovative logistics solutions.

Historically, the transport sector in India has offered limited employment opportunities for women. The project will support the ministry with an in-depth analysis of gender-related issues in the transport sector along with help in creating jobs for women by training women-led micro enterprises and women collectives to implement green technologies in the highway corridors.

“Connectivity for economic growth and connectivity for sustainable development are two important aspects of a country’s development trajectory. This operation brings these two priorities together in support of India’s growth strategy,” said Mr Junaid Ahmad, World Bank Country Director in India. “This project will provide efficient transportation for road users in the four states, connect people with markets and services, promote efficient use of construction materials and water to reduce the depletion of scarce natural resources, and help lower GHG emissions,” he added.

The National Highways of India carry about 40 percent of road traffic. However, several sections of these highways have inadequate capacity, weak drainage structures and black spots prone to accidents. The project will strengthen and widen existing structures; construct new pavements, drainage facilities and bypasses; improve junctions; and introduce road safety features. It is imperative that the infrastructure investments are climate resilient. To this effect disaster risk assessment of about 5,000 km of the National Highway network will also be undertaken under the project along with support to ministry for mainstreaming climate resilience aspects in project design and implementation.

The $500 million loan from the International Bank for Reconstruction and Development (IBRD), has a maturity of 18.5 years including a grace period of five years.

16-Dec-2020: World Bank Signs $400 Million Project to Protect India’s Poor and Vulnerable from the Impact of COVID-19

The Government of India and the World Bank today signed a $400 million project to support India’s efforts at providing social assistance to the poor and vulnerable households, severely impacted by the COVID-19 pandemic.

This is the second operation in a programmatic series of two.

The first operation of $750 million was approved in May 2020. It enabled immediate cash transfers to about 320 million individual bank accounts identified through pre-existing national social protection schemes under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) and additional food rations for about 800 million individuals.

The Second Accelerating India's COVID-19 Social Protection Response Program signed today will build on the shifts that the first operation has achieved and address some of the gaps. It will:

• Move away from a scheme-based system to a more integrated one;
• Build an adaptive social protection system through use of the government’s disaster response funds which can quickly provide support to excluded groups and deliver needs across states and communities, not only for COVID-19 but also for any future natural disaster or crises;
• Create a portable social protection platform in India to ensure food, social insurance and cash-support for migrants across state boundaries.
• Support the government’s targeted measures to identify and quickly trigger cash and social insurance benefits for the urban poor and unorganized sector workers currently outside program databases.

“The COVID-19 crisis has brought to the fore the risks that migrants and the urban poor face and the need for governments to strengthen preparedness for future disasters of this nature,” said C S Mohapatra, Additional Secretary, Department of Economic Affairs, Ministry of Finance. “This program will help further expand and deepen the coverage of India’s social protection systems by helping these vulnerable groups in urban and peri-urban areas across the country,” he added.

The agreement was signed by C S Mohapatra, Additional Secretary, Department of Economic Affairs, Ministry of Finance on behalf of the Government of India and Sumila Gulyani, Acting Country Director, India on behalf of the World Bank.

Early results from tracking the first operation through a representative household survey across India highlights the strengths and challenges of India’s social protection system.

Highlights from first operation approved in May 2020: Between May and August 2020, 84 percent of India’s poorest households (based on consumption measures) received at least one benefit under the PMGKY. While food delivery is impressive at scale – 77.5 percent of poorest households received food grains – cash transfers remain a challenge. Within cash programs, transfers into the Prime Minister’s Jan Dhan Yojna (PMJDY) bank accounts reached most families—nearly 80 percent of those enrolled in PMGKY cash transfer programs received benefits. However, dynamic targeting and registration in program databases remains a chief constraint in accessing cash for a large number of poor households.

“In face of the Covid-19 pandemic, Government of India has been actively strengthening the nation’s social protection system. In support of this process, the first operation by the World Bank followed Government’s lead to scale up pre-existing programs for emergency relief,” said Junaid Ahmad, World Bank Country Director in India. “This second operation will complement the expansion of India’s safety net programs to create a portable social protection platform ensuring food and cash support for poor households, urban migrants, and unorganized sector workers across state boundaries.”

Given the continent-like size and heterogeneity in India, the post COVID-19 economic shocks are likely to manifest itself differently at the sub-national, community and household levels. The impacts in India will be particularly sharp given that the workforce is predominantly informal and nearly half the households are vulnerable. The COVID-19 crisis has brought to the fore the risks that migrants and the urban poor face as social assistance programs in India largely target rural populations without portability across state boundaries.

“Most social protection schemes operating in modern India are designed for a rural, agrarian and chronically poor country. That India now only exists in pockets. Even prior to COVID-19, India needed to pivot its social protection system to address the needs of a more urban, mobile and diverse population where the risks are related to climate, urbanization and migration. The onset of the pandemic has escalated the urgency of this reform agenda,” said Qaiser Khan, Lead Economist and Shrayana Bhattacharya, Senior Social Protection Economist and World Bank’s Task Team Leaders for this project.

The new operation will allow flexibility for state governments to cater to their contexts, while ensuring that the needs of migrants, informal workers and the urban poor are addressed. The proposed reforms will allow states to access flexible funding from disaster response funds to design and implement appropriate social protection responses to COVID-19 and future disasters. Given that larger shares of COVID-19 cases in India are currently in urban and peri-urban areas, geographically targeted support to these hot-spot districts will help deepen social protection coverage in urban areas.

The program was prepared in collaboration with the Asian Development Bank (ADB), Agence Française de Développement (AFD) and Kreditanstalt Fur Wiederaufbau (KfW).

The $400 million credit is from the International Development Association (IDA) – the World Bank’s concessionary lending arm. Check project documents for funding details.

13-Dec-2020: Xavier Chauvet, International Bank applauds India’s efforts towards river rejuvenation & cleanliness

From artificial intelligence to state-of-the-art infrastructure development approaches, US companies are aiming to partner with their Indian peers to accelerate innovative technologies and solutions into the Indian market. In a session on Digital Water, Dr. Ravi Kota, Minister Economic – Embassy of India, Washington said, “United States can be great allies to building India’s Digital foundation for the water sector.” Xavier Chauvet De Beauchene, Senior Water and Sanitation Specialist, International Bank for Reconstruction and Development said that the bank is very proud of all the work done in India. “Who would have thought 5 years ago that 550 million people will stop defecating in the open in India.” He added that there is a massive shift in the Indian Government’s approach from focusing only on infrastructure development to working with people and bringing about behaviour change.

He also emphasized on the importance of data. “The problem cannot be solved if it is not understood and quantified.” India has taken many endeavours in this direction also. There are many tasks at the work-in-progress stage but it’s a very good start, he observed. Mr. Ben Grumble, Secretary, Environment, Maryland stressed upon the need of nations to learn from each other’s experience. He said that “equity” of water is very essential and shared the success story of the US Clean Water Act.  Interestingly, India too has launched ‘Jal Jeevan Mission’ with the goal of equal distribution of water to all. Usha Rao Monari, Senior Advisor at Blackstone Infrastructure Group and Board presenting the case of the Thames river cleaning up said that a good mix of policy and finance lead to effective cleaning of the river. It is noteworthy that the Namami Gange Mission has the advantage of these two factors – policy and finance.

The discussion was organised as a part of the 5th India Water Impact Summit by the National Mission for Clean Ganga (NMCG) and the Center for Ganga River Basin Management and Studies (cGanga).

Shri Rajiv Ranjan Mishra, Director General, NMCG said, “we are glad that our efforts are being recognised by the international fraternity now.” He attributes the success of the Namami Gange Mission to his team, volunteers, academicians and many self-help organisations who are working continuously towards the cause of cleaning Ganga and her tributaries under the vision of the Hon’ble Prime Minister, Shri Narendra Modi and the guidance of the Minister of Jal Shakti, Shri Gajendra Singh Shekhawat.

6-Jul-2020: World Bank and Government of India sign $750 million Agreement for Emergency Response Programme for Micro, Small, and Medium Enterprises

The World Bank and the Government of India today signed the $750 million agreement for the MSME Emergency Response Programme to support increased flow of finance into the hands of micro, small, and medium enterprises (MSMEs), severely impacted by the COVID-19 crisis.

The World Bank’s MSME Emergency Response Programme will address the immediate liquidity and credit needs of some 1.5 million viable MSMEs to help them withstand the impact of the current shock and protect millions of jobs. This is the first step among a broader set of reforms that are needed to propel the MSME sector over time.

The agreement was signed by Shri Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance on behalf of the Government of India and Mr. Junaid Ahmad, Country Director (India) on behalf of the World Bank.

Shri Khare said that the COVID-19 pandemic has severely impacted the MSME sector leading to loss of livelihoods and jobs. The Government of India is focused on ensuring that the abundant financial sector liquidity available flow to NBFCs, and that banks which have turned extremely risk averse, continue taking exposures in the economy by lending to NBFCs. This project will support the Government in providing targeted guarantees to incentivize NBFCs and banks to continue lending to viable MSMEs to help sustain them through the crisis.

The World Bank Group, including its private sector arm – the International Finance Corporation (IFC), will support the government’s initiatives to protect the MSME sector by:

Unlocking liquidity

India’s financial system benefited from early and decisive measures taken by the RBI and the Government of India (GOI) to infuse liquidity into the market. Give current uncertainties, lenders remain concerned about borrowers’ ability to repay – resulting in limited flow of credit even to the viable enterprises in the sector. This program will support government’s efforts to channel that liquidity to the MSME sector by de-risking lending from banks and Non-Banking Financial Companies (NBFCs) to MSMEs through a range of instruments, including credit guarantees.

Strengthening NBFCs and SFBs

Improving the funding capacity of key market-oriented channels of credit, such as the NBFCs and Small Finance Bank (SFBs), will help them respond to the urgent and varied needs of the MSMEs. This will include supporting government’s refinance facility for NBFCs. In parallel, the IFC is also providing direct support to SFBs through loans and equity.

Enabling financial innovations

Today, only about 8 percent of MSMEs are served by formal credit channels. The program will incentivize and mainstream the use of fintech and digital financial services in MSME lending and payments. Digital platforms will play an important role by enabling lenders, suppliers, and buyers to reach firms faster and at a lower cost, especially small enterprises who currently may not have access to the formal channels.

Shri Junaid Ahmad said that the MSME sector is central to India’s growth and job creation and will be key to the pace of India’s economic recovery, post COVID-19. The immediate need is to ensure that the liquidity infused into the system by the government is accessed by MSMEs. Equally important is to strengthen the overall financing ecosystem for MSMEs. This operation seeks to achieve both these objectives by furthering the role of NBFCs and SCBs as effective financial intermediaries and leveraging fintech to broaden the reach of finance into the MSME sector.

The World Bank has to date committed $2.75 billion to support India’s emergency COVID-19 response, including the new MSME project. The first $1 billion emergency support was announced in April this year for immediate support to India’s health sector. Another $1 billion project was approved in May to increase cash transfers and food benefits to the poor and vulnerable, including a more consolidated delivery platform – accessible to both rural and urban populations across state boundaries.

The $750 million loan from the International Bank for Reconstruction and Development (IBRD), has a maturity of 19 years including a 5-year grace period.

30-Jun-2020: Government of India and World Bank Sign Agreements to Increase Access to Affordable Housing for Urban Poor in Tamil Nadu

The Government of India, Government of Tamil Nadu and the World Bank today signed an agreement to help low-income groups in the state of Tamil Nadu get access to affordable housing.

The agreement was signed for two projects – $200 million First Tamil Nadu Housing Sector Strengthening Program and $50 million Tamil Nadu Housing and Habitat Development Project – to  strengthen the state’s housing sector policies, institutions, and regulations.

The $200 million First Tamil Nadu Housing Sector Strengthening Program is the first of a series of two single-tranche operations. The first operation supports the government’s ongoing efforts to increase the availability of affordable housing by gradually shifting the role of the state from being the main provider to an enabler. It will also aim to unlock regulatory barriers and incentivize private sector participation in affordable housing for low-income families. The second operation will look to deepen these measures to make the affordable housing sector more efficient and inclusive.

The agreement was signed by Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance on behalf of the Government of India; Hitesh Kumar S. Makwana, Principal Resident Commissioner, on behalf of the Government of Tamil Nadu; and Sumila Gulyani, Acting Country Director, India on behalf of the World Bank.

“Providing safe and affordable housing is a key priority for the state of Tamil Nadu as identified in its vision document,” said Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance.  “With the allocation provided under the Pradhan Mantri Awas Yojana (Urban) and the two projects from the World Bank, a large number of the urban poor in the state are expected to get access to better housing and, in the process, improve their living conditions.” 

Nearly half of Tamil Nadu’s population is urban, and this is expected to increase to 63 percent by 2030. An estimated 6 million people are currently living in slums (representing 16.6 percent of the state’s urban population).

“The ongoing COVID-19 pandemic has put urban households at an unprecedented risk of increased poverty, loss of human capital, assets and livelihoods. The impact will be most acute among the poor, particularly those living in overcrowded slums with limited access to basic services,” said Sumila Gulyani, Acting World Bank Country Director in India. “The projects will support the state’s vision of providing safe affordable housing with improved living conditions for the poor and vulnerable.

Concurrently, the Board also approved a $50 million Tamil Nadu Housing and Habitat Development Project to support innovations in housing finance and strengthen housing sector institutions in the state. It will finance the newly created Tamil Nadu Shelter Fund (TNSF) – an innovation in housing finance in India – by providing an equity contribution of $35 million.

This initial support to TNSF will enable cross-subsidization opportunities where higher returns from commercial and high-income developments will compensate for lower returns from affordable housing. This will make affordable housing commercially viable for potential investors. The project will also strengthen the capacity of key housing institutions including the Tamil Nadu Slum Clearance Board, the state’s main provider of affordable housing; Chennai Metropolitan Development Authority, the land use planning authority for the Chennai Metropolitan Area; and Tamil Nadu Infrastructure Fund Management Corporation Limited, the asset management company of TNSF.

“Global experience shows that the public sector alone cannot address a growing housing demand, especially as countries undergo rapid urbanization,” said Yoonhee Kim, Senior Urban Economist, World Bank and Task Team Leader for the Housing Sector Strengthening Program. “The public sector can play an important role in providing regulatory and market incentives to make affordable housing more attractive for the private sector.”

Abhijit Sankar Ray, Senior Urban Specialist, World Bank and Task Team Leader for the Tamil Nadu Housing and Habitat Development Project added: “Both projects will complement each other and strengthen key institutions to transform the housing sector in Tamil Nadu.”

The $200 million and $50 million loans from the International Bank for Reconstruction and Development (IBRD), have a maturity of 20 years including a grace period of 3.5 years.

25-Jun-2020: World Bank Enhances Support for Rejuvenating the Ganga

The World Bank today enhanced its support for the Government of India’s program to rejuvenate the Ganga River with a $400 million operation that will help stem pollution in the river, and strengthen the management of the river basin which is home to more than 500 million people.

The Second National Ganga River Basin Project (SNGRBP), approved by the World Bank’s Board of Executive Directors today, will support the government’s Namami Gange program and its long-term vision for controlling pollution in the river and restoring its water quality.  The World Bank has been supporting the government’s efforts since 2011 through the ongoing National Ganga River Basin Project, which helped set up the National Mission for Clean Ganga (NMCG) as the nodal agency to manage the river, and financed sewage treatment infrastructure in several riverside towns and cities.

“The government’s Namami Gange Program has revitalized India’s efforts to rejuvenating the Ganga,” said Junaid Ahmad, World Bank Country Director in India. “The first World Bank project helped build critical sewage infrastructure in 20 pollution hotspots along the river, and this Project will help scale this up to the tributaries.  It will also help government strengthen the institutions needed to manage a river basin as large and complex as the Ganga Basin.”

Ongoing National Ganga River Basin Project

• Helped set up the National Mission for Clean Ganga
• Helping build sewage collection and treatment infrastructure in 20 towns along the mainstem of the Ganga
• 1,275 MLD sewage treatment capacity created
• 3,632 km of sewage network built
• Helped foster public mobilization for Ganga rejuvenation

The Ganga Basin covers a quarter of India’s landmass, and is a critical economic and environmental resource for the country. It provides over one-third of India’s surface water, includes the country’s largest irrigated area and is key to India’s water and food security. Over 40 percent of India’s GDP is generated in the densely populated basin. But the Ganga river is today is facing pressures from human and economic activity that impact its water quality and flows.

“The Project will help expand the coverage of sewage treatment infrastructure to more towns in the Ganga Basin, and focus on making sure that these assets are operated and maintained efficiently in the long term,” said Xavier Chauvot de Beauchene, Lead Water & Sanitation Specialist and Upneet Singh, Water & Sanitation Specialist, both co-task team leaders (TTL) for the SNGRBP. “The Project will also help NMCG develop state-of-the-art tools to help manage the river basin more effectively.”

Over 80 percent of the pollution load in the Ganga comes from untreated domestic wastewater from towns and cities along the river and its tributaries.  The SNGRBP will finance sewage networks and treatment plants in select urban areas to help control pollution discharges. These infrastructure investments and the jobs they will generate will also help India’s economic recovery from the COVID-19 crisis.

To ensure that these infrastructure assets function effectively and are well maintained, the Project will build on the innovative Hybrid Annuity Model (HAM) of public private partnership introduced under the ongoing NGRBP, and which has become the solution of choice for sewage treatment investments in the Ganga Basin. Under this model, the government pays a private operator 40 percent of the capital cost to build a sewage treatment plant during the construction period; the remaining 60 percent is paid as performance-linked payments over 15 years to ensure that the operator runs and maintains the plant efficiently.

The Project also provides up to $19 million of IBRD Payment Guarantees to backstop the government’s payment obligations for three HAM-PPP investments on the Ganga’s tributaries. “This is the first-ever IBRD Guarantee for wastewater treatment and the first IBRD Guarantee in the water sector in India, and is expected to help free up public resources in the current economic situation,” said Satheesh Sundararajan, Senior Infrastructure Financing Specialist and co-TTL for the Guarantee.

The Second National Ganga River Basin Project comprises a loan in the amount of $381 million and a proposed Guarantee in the amount of up to $19 million. The variable spread loan has a maturity of 18.5 years including a grace period of 5 years. The Guarantee Expiry Date will be 18 years from the Guarantee Effectiveness Date.

14-May-2020: $1 Billion from World Bank to Protect India’s Poorest from COVID-19 (Coronavirus)

The World Bank’s Board of Executive Directors today approved a $1 billion Accelerating India’s COVID-19 Social Protection Response Program to support India’s efforts at providing social assistance to the poor and vulnerable households, severely impacted by the COVID-19 pandemic.

This takes the total commitment from the Bank towards emergency COVID-19 response in India to $2 billion. A $1 billion support was announced last month towards immediate support to India’s health sector.

This new support will be funded in two phases – an immediate allocation of $750 million for fiscal year 2020 and a $250 million second tranche that will be made available for fiscal year 2021.[1]

The first phase of the operation will be implemented countrywide through the Pradhan Mantri Garib Kalyan Yojana (PMGKY). It will immediately help scale-up cash transfers and food benefits, using a core set of pre-existing national platforms and programs such as the Public Distribution System (PDS) and Direct Benefit Transfers (DBT); provide robust social protection for essential workers involved in COVID-19 relief efforts; and benefit vulnerable groups, particularly migrants and informal workers, who face high risks of exclusion under the PMGKY. In the second phase, the program will deepen the social protection package, whereby additional cash and in-kind benefits based on local needs will be extended through state governments and portable social protection delivery systems.

Social protection is a critical investment since half of India’s population earns less than $3 a day and are precariously close to the poverty line. Over 90 percent of India’s workforce is employed in the informal sector, without access to significant savings or workplace based social protection benefits such as paid sick leave or social insurance. Over 9 million migrants, who cross state borders to work each year, are also at greater risk as social assistance programs in India largely provide benefits to residents within states, without adequate portability of benefits across state boundaries. Importantly, in an urbanizing India cities and towns will need targeted support as India’s largest social protection programs are focused on rural populations.

“The response to the COVID-19 pandemic around the world has required governments to introduce social distancing and lock downs in unprecedented ways. These measures, intended to slow down the spread of the virus have, however, impacted economies and jobs – especially in the informal sector. India with the world’s largest lockdown has not been an exception to this trend,” said Junaid Ahmad, World Bank Country Director in India. “In this context, cash transfers and food benefits will help the poor and vulnerable access a ‘safety bridge’ towards a time when the economy will start to revive.”

“The COVID-19 pandemic has also put the spotlight on some of the gaps in the existing social protection systems,” added Ahmad. “This program will support the Government of India’s efforts towards a more consolidated delivery platform – accessible to both rural and urban populations across state boundaries. The platform draws on the country’s existing architecture of safety nets – the PDS, the digital and banking infrastructure, and Aadhaar – while positioning the overall social protection system for the needs of a 21st century India. Importantly, such a system will need to leverage India’s federalism enabling and supporting states to respond quickly and effectively in their context.”

Of the $1 billion commitment, $550 million will be financed by a credit from the International Development Association (IDA) – the World Bank’s concessionary lending arm and $200 million will be a loan from the International Bank for Reconstruction and Development (IBRD), with a final maturity of 18.5 years including a grace period of five years. The remaining $250 million will be made available after June 30, 2020 and would be on standard IBRD terms. The program will be implemented by the Ministry of Finance, Government of India.

World Bank Group COVID-19 Response: The World Bank Group is rolling out a $14 billion fast-track package to strengthen the COVID-19 response in developing countries and shorten the time to recovery. The immediate response includes financing, policy advice and technical assistance to help countries cope with the health and economic impacts of the pandemic. The IFC is providing $8 billion in financing to help private companies affected by the pandemic and preserve jobs. IBRD and IDA are making an initial US$6 billion available for the health-response.  As countries need broader support, the World Bank Group will deploy up to $160 billion over 15 months to protect the poor and vulnerable, support businesses, and bolster economic recovery.

28-Jun-2019: World Bank to support Kerala through climate resilience program marks first 'state-partnership' in India

The Government of India, Government of Kerala and the World Bank signed a loan agreement of US$ 250 million for the Resilient Kerala Program to enhance the state's resilience against the impacts of natural disasters and climate change.

The 2018 floods and landslides in Kerala led to severe impact on property, infrastructure, and lives and livelihoods of people. One sixth of the state’s population - about 5.4 million people - were affected while 1.4 million were displaced from their homes, especially the poor and vulnerable segments of the population.

The Resilient Kerala Program will focus on strengthening the state's institutional and financial capacity to protect the assets and livelihoods of poor and vulnerable groups through an inclusive and participatory approach.

The new program is part of the Government of India’s support to Kerala’s ‘Rebuild Kerala Development Programme’ aimed at building a green and resilient Kerala. This partnership will identify key areas of policy and institutional strengthening to maximize development impact.

The World Bank has been working closely with the Government of India and Kerala since the floods struck in August 2018 in assessing the impact of the floods and assisting in recovery and reconstruction. The Bank support also helped identify policies, institutions and systems for resilience to disaster risks and climate change.

The program, which represents the first ‘state partnership’ of the World Bank in India, is the first of two Development Policy Operations aiming to mainstream disaster and climate resilience into critical infrastructure and services. The Bank is supporting Kerala through a mechanism of state partnership in priority areas such as transport, livelihood, and urban planning.

The program aims to support the state with:

• improved river basin planning and water infrastructure operations management, water supply and sanitation services
• resilient and sustainable agriculture, enhanced agriculture risk insurance
• improved resilience of the core road network
• unified and more up-to-date land records in high risk areas
• risk-based urban planning and strengthened expenditure planning by urban local bodies
• strengthened fiscal and public financial management capacity of the state

The Bank support through this program will not only bring about additional financial resources but also help leverage other development partners and connect the state to lessons from global good practices.

The World Bank has been supporting the state through engagements such as the Second Kerala State Transport Project, Dam Rehabilitation and Improvement Project, National Hydrology Project,  National Cyclone Risk Mitigation Project Phase 2, Kerala Local Government and Service Delivery Project, Kerala Rural Water Supply and Sanitation Project and the Kerala Local Government Service Delivery Project.

4-Jun-2019: Government of India, Government of Tamil Nadu and World Bank sign $287 million loan agreement for the Tamil Nadu Health System Reform Programme

The Government of India, Government of Tamil Nadu (GoTN) and the World Bank today signed a $287 million loan agreement for the Tamil Nadu Health System Reform Programme. The programme aims to improve the quality of health care, reduce the burden of non-communicable diseases (NCDs), and fill equity gaps in reproductive and child health services in Tamil Nadu.

Tamil Nadu ranks third among all Indian states in the NITI Aayog Health Index which is reflected in vastly improved health outcomes. The state’s maternal mortality rate has declined from 90 deaths per 100,000 live births in 2005 to 62 deaths in 2015-16 while infant mortality has declined from 30 deaths per 1000 live births to 20 in the same period. A key contribution to these achievements has been the establishment of emergency obstetric and neonatal care centres and the 108 ambulance service with previous support from the World Bank. These have ensured that no mother has to travel more than 30 minutes to access emergency obstetric and neonatal care 24 hours a day, seven days a week.

Despite these impressive gains, certain challenges in health care remain, including quality of care and variations in reproductive and child health among districts. Tamil Nadu is also dealing with a growing burden of NCDs as they account for nearly 69 percent of deaths in the state.

The Tamil Nadu Health System Reform Program will support the state government to:

• develop clinical protocols and guidelines;
• achieve national accreditation for primary, secondary, and tertiary-level health facilities in the public sector;
• strengthen physicians, nurses and paramedics through continuous medical education;
• strengthen the feedback loop between citizens and the state by making quality and other data accessible to the public.

The programme supports interventions to strengthen institutional and state capacity to achieve results. Good practices and innovations from Tamil Nadu are being scaled up while others from around the world are being introduced through the programme to improve management of the state public health sector, increase transparency, and strengthen accountability.

The programme will promote population-based screening, treatment and follow-up for NCDs, and improve monitoring and evaluation. Patients will be equipped with knowledge and skills to self-manage their conditions. Lab services and health provider capacity will also be strengthened to address mental health. To tackle road injuries, the programme will improve in- hospital care, strengthen protocols, strengthen the 24x7 trauma care services and establish a trauma registry.

Another key aim of this programme is to reduce the equity gaps in reproductive and child health. Special focus will be given to nine priority districts, which constitute the bottom quintile of the RCH indicators in the state and have a relatively large proportion of tribal populations.

This Programme focuses on results instead of inputs through a Programme-for-Results (PforR) lending instrument. This will provide a much greater focus on outputs and outcomes through better alignment of expenditures and incentives with results. The use of the P for R instrument is a first for the health sector and will offer lessons for other states.

5-Apr-2019: David R. Malpass, 13th President of the World Bank Group

David R. Malpass was selected as 13th President of the World Bank Group by its Board of Executive Directors on April 5, 2019.  His five-year term began on April 9.

Mr. Malpass previously served as Under Secretary of the Treasury for International Affairs for the United States.  Mr. Malpass represented the United States in international settings, including the G-7 and G-20 Deputy Finance Ministerial, World Bank–IMF Spring and Annual Meetings, and meetings of the Financial Stability Board, the Organization for Economic Cooperation and Development, and the Overseas Private Investment Corporation.

In 2018, Mr. Malpass advocated for the capital increase for the IBRD and IFC as part of a reform agenda featuring sustainable lending practices, more efficient use of capital, and a focus on raising living standards in poor countries.  He was also instrumental in advancing the Debt Transparency Initiative, adopted by the Bank Group and the IMF, to increase public disclosure of debt and thereby reduce the frequency and severity of debt crises. 

20-Nov-2018: Government of India and the World Bank sign $310 million Loan Agreement for Jharkhand Power System Improvement Project

The Government of India, the Government of Jharkhand and the World Bank signed a $310 million Loan Agreement for Jharkhand Power System Improvement Project to provide reliable, quality, and affordable 24x7 electricity to the citizens of Jharkhand.

The Jharkhand Power System Improvement Project will help build new power transmission infrastructure, as well as put in place systems to improve the technical efficiency and commercial performance of the state power sector utilities. The Project will help bring in modern technology solutions such as automated sub-stations, and network analysis and planning tools to provide reliable power supply and enhance customer satisfaction.

While a significant portion of the proposed investments are aimed at improving power transmission infrastructure, the Project will also focus on developing institutional capacities of State-owned power transmission and distribution companies and improving their operational performance.

The Project is part of the Government of India’s Power for All program launched in 2014. The plan envisages addition of over 4.5 GW generation capacities by 2022 (including a significant share of 1.5 GW from solar energy), through a mix of Private and Public-sector investments.

After signing the Agreement, Shri Sameer Kumar Khare, Additional Secretary, DEA said that Jharkhand was one of the first States’ to join the Power for All plan and is making efforts to improve access to power through reforms in transmission and electricity distribution. He further said that with the demand for reliable power expected to almost double in the coming years, the Project will help meet the energy needs of the State for its economic growth.

 Speaking on the occasion, Mr. Junaid Ahmad, World Bank Country Director in India said that the Government of Jharkhand is committed to providing quality power supply to its people for the State’s economic development. This Project will help the State increase supply of reliable electricity to households, industries, businesses and various other productive sectors, and contribute to poverty alleviation, and inclusive growth in Jharkhand.

The Government of Jharkhand has achieved significant results towards electrification. As per data from the Jharkhand Distribution Company more than 80 percent of all citizens in the State have access to electricity. However, the State will have to continue to work towards providing reliable 24x7 power for all its consumers. The Per Capita Consumption of electricity in Jharkhand at 552 kWh at the end of FY16 is roughly half of the national average. Improved availability of power in the region from plants owned by the Central Government and Independent Power Producers (IPPs) has helped the State achieve lower demand supply deficits in recent years.

Some of the major components of the project include construction of new substations and transmission lines, primarily at 132kV voltage level; provide support to the Jharkhand Urja Sancharan Nigam Limited (JUSNL) in setting-up systems for strengthening the State Load Dispatch Centre (SLDC) operations including financing software solutions for improving scheduling and dispatch functions. This will help integrate renewable energy in the State grid.

The Project will also support smart meters, with two-way communication and backend IT infrastructure, deployed in select urban towns. These meters will not only reduce technical and commercial losses, but also improve peak load management. The meters are expected to provide consumers with better access to data which will encourage them to reduce their electricity consumption. To begin with, the Project will finance smart metering for around 350,000 consumers in the capital city of Ranchi. 

Implementing such a large program and improving the financial health of the sector, requires deeper institutional development of its power transmission & distribution utilities. Hence, one of the key elements of the current project will be to support institutional strengthening of the State-owned utilities in the areas of procurement, contract implementation, financial management, and commercial operations among others

The $310 Million Loan from the International Bank for Reconstruction and Development (IBRD), has a 5-year grace period, and a final maturity of 25 years.

30-Jan-2018: The ​Government of India and World Bank sign $100 Million Project to Boost Rural Economy of Tamil Nadu

The Government of India and the World Bank has signed a $100 million Loan Agreement that is expected to promote rural enterprises, facilitate their access to finance, and create employment opportunities for youth, particularly women, in selected blocks of Tamil Nadu across 26 districts, directly benefitting over 400,000 people.

The Tamil Nadu Rural Transformation Project will create an enabling environment for producer organizations and enterprises to promote businesses across select value chains. Based on the analysis, communities will identify commodities and subsectors in the value chain for preparing business plans. Thirty percent of the financing for these business plans will be through a matching grant program from the project and the remaining 70 percent will be leveraged from other financial institutions.

Government of India is committed to help create an enabling environment of institutional reforms, policies and investments which are key factors that will help India attain speedy and inclusive rural transformation. The Project will enable producer organizations and enterprises especially women entrepreneurs in Tamil Nadu, build businesses that will help them access finance, markets and networks and generate employment.

​​It will also specifically support eligible households from socially and culturally disadvantaged groups harness their existing assets, skills, and resources; break their entry barriers to value-added economic activities; enhance their ability to access finance, markets, technology, and related support services; help them graduate to value-added economic activities with higher returns such as garment manufacturing and food processing units, eco-tourism ventures, and businesses around creative industries.

World Bank-financed State Livelihood Projects, which have so far reached over 35 million people, have given the rural poor a greater sense of identity, and better services and livelihood opportunities. This Project will build on those achievements and support Tamil Nadu’s rural enterprises access finance, build business skills and create jobs.

The Project will be operational in 120 blocks across 3,994 villages in 26 Districts of Tamil Nadu with 411,620 direct beneficiaries. It will work with targeted households that are already part of Self-Help Groups (SHGs). The project will be rolled out in a phased manner – 26 blocks will be taken up for implementation in all project districts in the first eight months, followed by 52 blocks by the end of 12 months, and the remaining 42 blocks by the end of 18 months from initiation of project implementation.

​ Selected innovations and start-up ideas will also be tested or scaled up under a newly created platform known as the Tamil Nadu Rural Transformation Marketplace. This platform will identify, showcase and celebrate innovative solutions related to themes that have the potential to impact rural economic growth in the state. Innovative ideas related to promoting rural artisans, local nutritious food systems and traditional health practices will be considered. The project will draw lessons from several rural livelihoods programs in India and build on the successes of the recently closed Tamil Nadu Empowerment and Poverty Reduction Project.

The Project will support building an ecosystem that will provide business development services to entrepreneurs in rural and semi-urban areas for promoting rural enterprises and creating employment opportunities. It will specifically target at least 60 percent women entrepreneurs from the SHG network in Tamil Nadu who have the potential to move into the next level of economic integration.

​ ​An e-governance architecture with the use of ICT along with a robust Management Information System (MIS) will help monitor and track results real time.

The $100 million loan from the International Bank for Reconstruction and Development (IBRD), has a 5-year grace period, and a maturity of 19 years.

20-Dec-2017: India signs Financing Agreement with the World Bank for US$ 125 Million for 'STRIVE' Project.

A Financing Agreement for IDA Credit of USD 125 million (equivalent) for the “Skills Strengthening for Industrial Value Enhancement Operation (STRIVE) Project” was signed by the Government of India with the World Bank.

The Objective of the operation is to improve access to quality and market-driven vocational training provided in it is and apprenticeships.

The result areas for the project include Improved Performance of Industrial Training Institutes; Increased Capacities of State Governments to Support Industrial Training Institutes and Apprenticeship Training; Improved Teaching and Learning; and Improved and Broadened Apprenticeship Training.

The closing date for the project is 30th November, 2022.

30-Oct-2017: The Government of India and World Bank sign $200 Million Loan Agreement for the Assam Agribusiness and Rural Transformation Project.

The Government of India and the World Bank today signed a $200 million Loan Agreement for the Assam Agribusiness and Rural Transformation Project.

The Project will support the Government of Assam to facilitate agri-business investments, increase agriculture productivity and market access, and enable small farm holders produce crops that are resilient to recurrent floods or droughts in the state.

After the Agreement, Mr. Khare, Joint Secretary, Department of Economic Affairs, Ministry of Finance said that Assam is simplifying several regulatory procedures related to doing business, agricultural marketing, and fisheries amongst others. The project will help the State increase agricultural productivity by strengthening the farming systems, raise private sector investments to promote Agri-enterprises which will create better job opportunities for the youth in the State.

The Project will be implemented in over 16 Districts of Assam. Over 500,000 farming households will directly benefit from the Project. At least 30 percent women are expected to participate in project activities. Specific focus will be given to women-led enterprises and their participation in the decision-making process of farmer producer organizations.

Speaking on the occasion, Mr. Hisham Abdo, Operations Manager, World Bank said that the Government of Assam aims to double farm incomes in the State and transform the agricultural sector into a stable source of growth and economic development. This project will serve as the nucleus to fulfill the State’s much larger vision of an agriculture-based rural transformation.

The focus on geographic clustering of the production base for certain commodities will help Agri-enterprises take advantage of existing and future market opportunities that they may not necessarily achieve alone. The cluster approach will allow for combining efforts, making use of synergies, and pooling resources to increase the competitive advantage of these products, while at the same time share the risks involved in introducing improved products or entering previously untapped markets. Successful clusters will also continuously innovate and adapt ‘best practices’ across agricultural value chains.

Mr. Manivannan Pathy, Senior Agricultural Specialist and World Bank’s Team Leader for the Project said that the value addition and market led production systems supported through the project are expected to play a vital role in enhancing the competitiveness of the agriculture sector. He said that this will be done by facilitating policy reforms, fostering private-public dialogue and catalyzing a wider private sector development in the agribusiness ecosystem of Assam.

Another key component of the project will be to promote market-led production that can deal with the vagaries of climate change. Assam’s agriculture sector is highly vulnerable to climate variability and the state experiences recurrent floods and droughts. Currently, more than 50 percent of the paddy growing areas are prone to flooding, submergence and drought. A market-led production system will take advantage of the rapidly changing market, introduce crops that are resilient to climate change, increase production and manage risks for farmers.

The $200 million loan from the International Bank for Reconstruction and Development (IBRD), has a 7-year grace period, and a maturity of 16.5 years.

25-Mar-2017: India Signs Financing Agreement with World Bank for Us$ 100 Million for Uttarakhand Health Systems Development Project.

A financing agreement for IDA credit of US$ 100 (equivalent) for the "Uttarakhand Health Systems Development Project" was signed with the World Bank .

The objective of the project is to improve access to quality health services, particularly in the hilly districts of the State, and to expand health financial risk protection for residents of the State. The project will benefit the residents of hilly districts in particular. The project has two main components, (i) Innovations of engaging the private sector; and (ii) Stewardship and system improvement. Out of the total project size of USD 125 million, USD 25 million will be the counterpart contribution of the State Government.

The planned design of the Project consists of multiple self-contained clusters of clinical services managed by operators on a PPP basis, providing services for free or at nominal charges, backed up by a robust oversight and monitoring mechanism fully integrated with the expanded health insurance program in the State. This will be concurrent with strengthening the state’s capacity to implement the project.

The closing date of Uttarakhand Health Systems Development Project is 30th September, 2023.