Lok Sabha Question No. 3844 (UNSTARRED), answered on 2017-03-24
Subject: World Bank Loans
Ministry: FINANCE
Asked by: ASHOK SHANKARRAO CHAVAN, BIDYUT BARAN MAHATO, VIJAY KUMAR S.R., SUDHEER GUPTA, KUNWAR HARIBANSH SINGH

:

## 1′ OK SABIA UNSTARRED QUEST10N NO.3844

## TO BE ANSWERED ON FRIDAY,MARCΠ

## 24,2017/Chaitra 3,1939(Saka)

## や Vorld Bank:′ Oans OUEST10N

3844 SHRI ASHOK SHANKARRAO CHAVAN: SHRI BIDYUT BARANヽ 4AllATO: SHRIS R Vl」 AYAKUヽlAR: SHRISUDHEER GUP!A: KtlNWAR HARIBANSH SINGH:

WiH thc Ministcr of「 INANCE bc plcascd to statc:-

- (a)Whcthcrthc Govcmmcnt has mctthc Chicf Exccutivc OfIIcc Of WOrld Bank rcccndy and ir s。 ,thc dctalis thcrcOf and thc issucs discuss in thc lnccting along with thc outcomc thcrctt):
- (b)ヽ lhcthcr(1lc(〕 。 、 crnlllcnt has rcqucstcd thc WOrld Bank to lowcr thc cllcctivc ratc or lntcrcst On WOrld Bank loan by g じ moving thc commitlllcnt chargcs lcvicd On t1lc undisl)tlrscd loans:
- (C)if so,thc dctails thcrcOfalong with thc rcspOnsc Orthc world Bank thcrcto;
- (d)whcthcr india has sought an assistancc/1oan iOm WOrid Bank tO clcar huge pipclinc Ofpr● CCtヽ ¨d
- (C)if so,tllc dctails thcrcof and thc amOunt likcly tO bc sanctiOncd along with thc tcrms and conditions thcrclo?

## ANSWER

## MINIS rER  o「   sFATE  IN  riIE  MINISTRY  OF  FINANCE (SIIRI ARJl,N RA'l MECHWAI.)

- {a) Ycs sir  Thc chicf Exccullvc Offlccr o「 wOrld Batt GrOup. ヽ 4s Kristalina Gcorgicva was oll visit to lndia lrOm 27th Fcbrualy to 02tld March,2017 D、lrilぅ g hcr visit, shc hcld mcctings 、 vith thc HOn'blc rinallcc Millistcr. 110n hlc(]hicr

Minister of Maharashtra.  scnior otlicials fiom Govemment  of lndia, RBI' and some Workl Bank Group Project Implementing autho'ities' The discussions  during the meeting ranged from the World Bank's shategy  and program in India to the performance of World  Bank Group projects.

The CEO was apprised  of the various policy issues pertaining  to the World Bank Group and the site visit helped hcr  get a hrst-hand experience  of the implementation  of thc World  Bank  projects in lndia.

(b)  &  (c): Yes Sir. Since the World Bank  Group  projects  are required  to pay commitment charge  of 25 basis point  even on the  part ofthe loan which they havc committed  to draw only in subsequent  years, hencc the World Bank Group  was requested  to lower the effective  rate of interest on World  Bank loan by removing  the commitment  charges levied  on the undisbursed  loans.

During the discussions.  the World Bank Group acknowtedged  lndia's concem  and stated that the rcmoval of commitment  charges  will be difficult to adopt  due to the tighr cost racovery  guidelincs  of the World  Bank Group-  However it was sppreciated  dudng the mcetings  that eflici€nt  projeat stucturing  hclps  in minimizing  the burden of the commitment charges.

(d) &  (e): Yes Sir. The detaits of the pipeline projects for assistance of USD 9432.4 Million fiom the World Bank Group  are at Annexure  'A''

'lhe  final decision to select a project and extcnd loan/assistanca along with quantum of loan tests with the World Bank. Thg same is intimated  to the Govemment of India  from time to time as and when a particular  project  is ready for implementation  for the  purpose  ofloan ncgotiation  and signing of loan.

All financial  assistance  to India  is govemed  by legal agreements.  which inter-alia dcscribc  the lerms and conditions of individuat loans according to the financial product(s)  opted  by the Govemment.  The rate of interest  and norms  fixed for repayment of the loans vary ftom loan to loan and are defined in the respective legal documents' Summary of interest rates and applicable charges in rcspect IBRD loans is at Annexure 'B'.

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## ADnexure-A

| Project name                                                            | IBRD Commitment Amount (in USD Million)   |
|-------------------------------------------------------------------------|-------------------------------------------|
| Shared Infiastmctue for Solar Parks                                     | 75.0                                      |
| Capacity Auglentation ofNational waterway I                             | 3750                                      |
| Kamataka Strengthening Governance and Service                           | 2090                                      |
| National Agdcultural Higher Educatiol                                   | 82.5                                      |
| Uttarakhand WorKorce Development                                        | '74.0                                     |
| 24x7- Power for a1l h Andhra Pradcsh                                    | 2400                                      |
| Madhya Pradesh Urban Development                                        | 1162                                      |
| Assam Agri-business& Rural Tmnsformation                                | 2000                                      |
| Innovate iD India (13)                                                  | 1250                                      |
| Himachsl Public Financial Management Capacity Building Pmsram           | 36.0                                      |
| Assatn State Public Finance Institutioml Reforms (ASPIRe) Projecr       | 35.0                                      |
| Tamil Nadu Rural Tmrsformation Project                                  | 1000                                      |
| National GW Management Improvement Progmm                               | 5000                                      |
| Skill India Mission Operation                                           | 5000                                      |
| Jharkiand Opportrmities for Hamessing Rur&l Growth Project              | 1000                                      |
| UP Pro-poor Tourism D€velopment Project                                 | 1050                                      |
| UP Core Road Network Development                                        | 4000                                      |
| Assarn Citizen-Centric Service Deliverv                                 | 39.2                                      |
| Stengthering Public Financial Management in Rajasthan                   |                                           |
| Madhya Pradesh Rural Connectivity Project                               | 2108                                      |
| Rajasrhan State Highways Development Prognm II                          | 2500                                      |
| Meghalaya Landscap€s Project                                            | 60.0                                      |
| Uttarakhand Water Supply & Sanitation                                   | 1200                                      |
| Jharkhand Municipal Development Project                                 | 2100                                      |
| Tamil Nadu lrrigated Agricultue Modemization Project                    | 3180                                      |
| Rajasthan Electric Distribulion Reform 2                                | 2500                                      |
| Odisha Higher Educarion Project                                         | 1190                                      |
| Maharashtra Project on Climate Resilient Agdculture                     | 4800                                      |
| Andha Pradesh Inte$ated Inigation & Agriculture Transformation Proj ect | 1700                                      |

| Karnataka Urban Water Supply Modemization Project - Additional Financing   | 1000   |
|----------------------------------------------------------------------------|--------|
| Assam lnland Water Transport Project                                       | 1200   |
| Madhya Pradesh Public Financial Management Sengthcnmg Prolect              | 330    |
| India Smart Cities Program                                                 | 5000   |
| Amaravati Sustainable Capital City Development                             | 3000   |
| lnnovation in Solar & Hybrid Technologies                                  | 1800   |
| India Energy Efficiency Scale-up Program                                   | 3000   |
| Uttar Pradesh Solid waste Management Project                               | 850    |
| Shimla WSS Project                                                         | 850    |
| Jharklund Power System Improvement Project                                 | 4040   |
| Himachal Pradesh: Forests for Prosperity                                   | 1000   |
| Assam Flood Erosion River Modemisation                                     | 2500   |
| Jharkhand Service Delivery Project                                         | 476    |
| West Bengal Maior Irrigation Project                                       | 1450   |
| HP Statc Roads ProJcct II                                                  | 00     |
| Chmatc Resilicnt Attcultllrc Pro」 cct                                      | 161 4  |
| MUTP3                                                                      | 6000   |
| Pune Metlo Rail Project                                                    | 5000   |
| Tolal assistance                                                           | 9,4324 |

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## Terms snd Conditions  of World B{nk  (;roup

|                                                       | Type of t an/Cr€d ir     | Maturl● :"Tf   | l other chargぃ                                                                                            |
|-------------------------------------------------------|--------------------------|----------------|-----------------------------------------------------------------------------------------------------------|
| Intemational Bank for Reconstruction and f)evclopmenl | Variable or lixed spread |                | Commitment Charges @- 0.25 % p.a. Front-End Fee of0.25 oZ on Loan Agreement amount (Applicable on current |