From: BARRRM@zis.ziff.com (Mallidi Reddy)
Subject: India Receives Series of World Bank Loans
Organization: BARRA, CA.
Date: Mon, 21 Dec 92 12:02:25 GMT


     Sources: DPA, XINHUA, Financial Times
     Date   : Dec 17-18, 1992
     Country: India

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  * India receives series of World Bank loans and credits

  India has recieved a series of loans and grants from the World Bank to
  help develop environmental and energy resources as well as social 
  services, the Bank announced on Friday.

  i) $500m for social safety programs

  The largest crdit of $500m is for supporting the initial phase of the
  government's social safety net sector adjustment program including 
  retraining of laid off workers and desease control. The social safety net
  program will support the government's continuing efforts to pursue
  structural adjustment with a human face. The key areas covered by the
  program are: key social secror programs which deal with primary education,
  primary health care, nutrition and disease control, and the national
  renewal fund which has been established as temporary social safety net
  to cover the costs of compenstation and severance pay, retraining and 
  redevelopment of workers affected by the restructuring of the sick 
  public sectors, and area employment regeneration schemes in cities and
  states affected by the public sector restructuring.
  The interest-free credit will be provided by the IDA. The progran will be
  cofinanced with an additional $406m from the Netherlands, US, Germany,
  the European Community, and Asian Development Bank.

  ii) $12m for coal fire control program

  Another $12m interest-free credit extended by the Internationl Development
  Authority (IDA) is intended for a fire fighting progran for the Jharia
  coalfields and the preparation of an environemental management plan.
  The Jharia coalfields managed by the Bharat Coking Coal Ltd. contains
  one of the highest concentration of thick coal seams in the world and
  the mine produces about 80% of the coking coal required by the India's
  steel industry. However, the presence of coal fires in the mine have a
  considerable impact on the mining and the livelihood of the people 
  living in the region. The first reported minefire dates back to 1916,
  and the fire is still burning. In subsequent years more thatn 75 fires
  have been started and only five have been put out.
  The loan will assist Bharat Coking Coal to prepare a program to control
  the mine fires and to deal with the economic and social implications of
  those fires.

  iii) $190m for alternate energy sources

  The world Bank also announced $190m in support for a series of credits
  designed for alternative energy ventures, including finding substitute
  fibers for newsprint, thus sparing India's diminishing forest 
  resources.  (DPA, XINHUA Dec 18)

  * Cotton prices languish despite government's support

  Indian cotton prices are much lower than last year's, in spite of the
  federal government raising support prices and sanctioning an export quota
  of 500,000 bales (170kg each) of cotton, plus 85,100 bales of yellow
  pickings and soft and hard cotton waste, ahead of the arrival of the new
  season crop. The delayed monsoon has delayed this year's cotton crop.
  The behaviour of cotton prices has once again proved that India can not
  depend entirely upon value-added exports of yarn and fabrics. The interest
  of farmers in cotton cultivation is unlikely to sustain unless India
  remains a regular exporter of cotton. The government my allow additional
  exports of cotton in the current season to maintain domestic prices. 
  (FT Dec 17)

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