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Union Finance Minister Pranab Mukherjee has mentioned that the 95% of the $4.3 billion loan granted by World Bank will used for the development the infrastructure of India.
"The World Bank has sanctioned $4.3 billion loans for India. At least 95% of the fund will be used for developing infrastructure," said Mukherjee. He was talking at the 108th annual general meeting of the Merchants' Chamber of Commerce (MCC) in Kolkata.
"Of this total grant, $2 billion will go to the banking sector for expanding the volume of credits available to firms," he said.
$1.2 billion has been approved by World Bank which is meant to be used for the public-private partnership projects which will be implemented by India Infrastructure Finance Co Ltd in the infrastructure segment. This fund will also be used for the development of a long-term local currency debt financing market
The fund will also be used for overcoming India's acute power shortages by providing assistance to PowerGrid Corp.
The bank has also provided $150 million to Andhra Pradesh to improve its water supply and sanitation services for 2,600 villages across six districts.
