Lok Sabha Question No. 2506 (UNSTARRED), answered on 2018-03-09
Subject: IBRD Loan Agreement for SANKALP
Ministry: FINANCE
Asked by: POONAMBEN HEMATBHAI MAADAM

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 2506

TO BE ANSWERED ON FRIDAY, MARCH 09, 2018/ PHALGUNA 18, 1939 (SAKA)

## IBRD Loan Agreement for SANKALP

## 2506. SHRIMATI POONAMBEN MAADAM :

## Will the Minister of FINANCE be pleased to state :

- (a) whether his Ministry has signed loan agreement with the International Bank for Reconstruction  and  Development  (IBRD)  for  the  Skills  Acquisition  and  Knowledge Awareness  for  Livelihood  Promotion  (SANKALP)  project  recently,  if  so,  the  details thereof;
- (b) the  aims  and  objectives  of  said  loans  along  with  the  ongoing  projects  in  association  with international agencies, State/UT-wise including Gujarat;
- (c) whether  India  has  contributed  any  share  to  the  World  Bank  and  if  so,  the  details  thereof during each of the last three years and the current year; and
- (d)   the role of India in the decision making body of World Bank?

## ANSWER

## MINISTER OF STATE FOR FINANCE (SHRI PON RADHAKRISHNAN)

(a) Yes, Madam.  The Skills Acquisition and Knowledge Awareness for Livelihood (SANKALP) is a project of total size US Dollar 675 million, including World Bank assistance of US  Dollar  500  million,  in  two  tranches  of  US  Dollar  250  million  each,  with  a  six-year implementation  schedule.  At  present,  the  first  tranche  has  been  approved  for  implementation. Accordingly,  a  Loan  Agreement  with  International  Bank  for  Reconstruction  and  Development (IBRD) for an amount of US Dollar 250 million has been signed by the Government of India on December 13, 2017. The total repayment period of this loan amount is 18 years, including a grace period  of  6  years.  SANKALP  is  an  outcome  oriented  project,  where  the  outcomes  will  be measured through Disbursement Linked Indicators (DLIs). The loan amount will be disbursed in phases, upon achievement of DLIs like successful completion of skill development programs by trainees, percentage of graduates employed within six months of completion of programs, number of trainers and assessors trained, improved performance of states on institutional strengthening, increase  in  percentage  of  women,  SCs  and  STs,  and  Persons  With  Disabilities  participating  in training  programs,  and  successful  utilization  of  public  and  private  sector  funding  into  skill development initiatives.

(b)     SANKALP is a project to reform the skill development landscape, strengthen institutions at Central and State levels, enable greater decentralization of skill development governance, and improve industry connect of skill development programs. The main objectives of the project are:

- (i) Creating convergence among all skill training activities, both State-led and Government of India funded, at the state level;
- (ii) Improving quality of skill development programs through enablers such as building a pool of quality trainers  and assessors, developing model curriculum and content, and standardizing assessment and certification;
- (iii) Establishing robust monitoring and evaluation system for skill training programs;
- (iv) Providing access to skill training opportunities to the disadvantaged sections; and
- (v) Creating industry led and demand driven skill training capacity.

The  list  of  other  ongoing  projects  focused  on  skill  development  being  implemented  with assistance of international agencies, along with their aims and objectives, is at Annexure-I.

(c)      India has contributed to the paid-in capital of IBRD and International Finance Corporation (IFC) pursuant to the last Capital Increase of the World Bank that was agreed to in 2010. India's contribution  to  these  institutions  of  the  World  Bank  during  the  last  three  years,  including  the current year is at Annexure-II.

(d)     In accordance with the Articles of Agreement of the World Bank, all powers are vested in the  Board  of  Governors,  which  is  the  decision-making  body  of  the  Bank.  The  Board  of Governors  consists  of  one  Governor  and  one  Alternate  Governor  appointed  by  each  member country.  The  Governor  of  the  Bank  for  India  is  the  Union  Minister  of  Finance  while  the Alternate  Governor  for  India  is  the  Secretary,  Department  of  Economic  Affairs,  in  the  Union Ministry of Finance. The Governors have delegated most powers to the Executive Directors who are  responsible  for  the  conduct  of  the  general  operations  of  the  Bank  and  who  represent  a member country or a group of member countries. The Executive Director of India represents four constituency  countries,  namely  India,  Bangladesh,  Sri  Lanka  and  Bhutan,  in  the  Board  of Directors.

***

## ANNEXURE-I  IN  RESPECT  OF  PART  (b)  OF  THE  REPLY  TO  LOK  SABHA UNSTARRED QUESTION NO.  2506  BY  SHRIMATI  POONAMBEN  MAADAM  FOR ANSWER ON MARCH 09, 2018

List  of  other  ongoing  projects  focused  on  skill  development  being  implemented  with assistance of international agencies

|   No. | Project Name                                                             | Internatio nal agency   | State/ Central Project                                      | Aims and objectives                                                                                                                                                                                       |
|-------|--------------------------------------------------------------------------|-------------------------|-------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|     1 | Skills Strengthening for Industrial Value Enhancement Operation          | IDA                     | Central (Ministry of Skill Development & Entrepreneursh ip) | Improve access to quality and market- driven vocational training provided in Industrial Training Institutes (ITIs) and apprenticeships                                                                    |
|     2 | Nai Manzil- Education and Skills Training for Minorities                 | IDA                     | Central (Ministry of Minority Affairs)                      | Improve completion of secondary education and market-driven skills training for targeted youth from minority communities                                                                                  |
|     3 | Vocational Training Improvement                                          | IDA                     | Central (Ministry of Skill Development & Entrepreneursh ip) | Improve the employment outcomes of graduates from the vocational training system by making the design and delivery of training more demand- responsive                                                    |
|     4 | Technical Education Quality Improvement Project III                      | IDA                     | Central (Ministry of Human Resource Development)            | Enhance quality and equity in participating engineering education institutes and improve the efficiency of the engineering education system in focus states                                               |
|     5 | Enhancing Teacher Effectiveness in Bihar Operation                       | IDA                     | State (Bihar)                                               | Improve the effectiveness of elementary school teachers in Bihar                                                                                                                                          |
|     6 | Tejaswini: Socioeconomic Empowerment of Adolescent Girls and Young Women | IDA                     | State (Jharkhand)                                           | Improve completion of market-driven skills training and secondary education for Adolescent Girls and Young Women in select districts of Jharkhand                                                         |
|     7 | Supporting Kerala's Additional Skill Acquisition Program                 | ADB                     | State (Kerala)                                              | Implement post-basic education i.e. higher secondary and under-graduate levels with market relevant vocational training and career counseling to enhance the youth employability and employment prospects |
|     8 | Supporting Human Capital Development in Meghalaya                        | ADB                     | State (Meghalaya)                                           | Enhance the employability of youth by improving the quality and delivery of its secondary and higher secondary education, and technical and vocational skills development programs                        |

## ANNEXURE-II  IN  RESPECT  OF  PART  (c)  OF  THE  REPLY  TO  LOK  SABHA UNSTARRED QUESTION NO.  2506  BY  SHRIMATI  POONAMBEN  MAADAM  FOR ANSWER ON MARCH 09, 2018

|   No. | Year     | Institution   | Contribution (USD million)   | Remarks                                                                                                                                                                                                                                                                                                                                                                                                              |
|-------|----------|---------------|------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|     1 | 2014-15  | IBRD IFC      | 37.276 0.094                 | Payment of USD 20.867 million in respect of India's subscription of 2,883 shares out of 14,744 shares of India under the 2010 General Capital Increase of IBRD; and Payment of USD 16.409 million in respect of India's subscription of 2,267 shares to complete India's subscription of 9,348 shares of India under the 2010 Selective Capital Increase of IBRD Subscription of 94 additional shares of the capital |
|     2 | 2015-16  | IBRD          | 20.867                       | Payment in respect of India's subscription of 2,883 shares to complete India's subscription of 14,744 shares of India under the 2010 General Capital Increase of IBRD                                                                                                                                                                                                                                                |
|     3 | 2016-17  | -             | NIL                          | -                                                                                                                                                                                                                                                                                                                                                                                                                    |
|     4 | 2017-18* | -             | NIL                          | -                                                                                                                                                                                                                                                                                                                                                                                                                    |