THE WORLD BANK said today it will lend India $14bn (£9.34bn) by 2012 to help the country overhaul its creaking infrastructure and increase living standards in its poor states.
The government has estimated it needs $500bn (£334.29bn) over the five years to 2012 to upgrade infrastructure such as roads, ports, power and railways.
“Under the strategy, the bank will use lending, dialogue, analytical work, engagement with the private sector, and capacity building to help India achieve its goals,” the World Bank said.
The International Bank for Reconstruction and Development would lend $9.6bn (£6.4bn) and the International Development Association would make available $4.4bn (£2.94bn) of funding.
Only 30 per cent of India’s state highways have two lanes or more, and the majority is in poor condition, the bank said. Electricity generation capacity has grown at less than five per cent in the past five years, much slower than overall economic growth of about eight per cent over the same period.
The funds would also be used to help reduce poverty in seven low-income states such as Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa, Rajasthan and Uttar Pradesh, the World Bank said.
