<p>The pact was signed Tuesday by representatives of the central government, India Infrastructure Finance Co (IIFC), PowerGrid Corp and the World Bank. <br /><br />Under the agreement, the bank will provide $2 billion for state-run banks, with IIFC receiving $1.195 billion to fund infrastructure projects, and PowerGrid Corp getting $1 billion to upgrade India's power transmission system.<br /><br />"Today’s support will help maintain credit growth and continued infrastructure investments in the country," said Roberto Zagha, World Bank Country Director for India. <br /><br />"Supporting infrastructure is particularly important during the current crisis, not just to sustain the domestic economy at a time of reduced global demand, but even more to lay the foundations for stronger future growth,” Zagha said.<br /><br />Added IIFC chairman and managing director S.S. Kohli: “This loan will help IIFC increase the availability of long-term finance for infrastructure projects across a range of sectors including roads, power, airports, and ports. <br />“India's infrastructure needs have been estimated at between $100-150 billion per year, with realizations well short of this target," he said. <br /><br />The funding to IIFCL has two components -- IBRD loan of USD 1.195 billion long-term finance to infrastructure projects and a grant of USD 5 million for capacity building of IIFCL, which finances infrastructure projects.<br /><br />"This loan ... (will make) long-term financing available to infrastructure projects being done through public private partnerships... in a range of sectors, including roads, power, airports, and ports," the statement said.<br />The total cost of the Fifth Power System Development Project, aimed at strengthening of the transmission system, is USD 1.562 billion.<br />The loan will be utilised for strengthening transmission systems for Sasan, Mundra and Krishnapatnam Ultra Mega Power Projects and South-West interconnection. This would further result in the strengthening of the National Grid, it said.<br /><br />"This is a crucial time," World Bank Country Director for India, Roberto Zagha, said in a statement.<br />"Today’s support will help maintain credit growth and continued infrastructure investments in the country. Supporting infrastructure is particularly important during the current crisis, not just to sustain the domestic economy at a time of reduced global demand, but even more to lay the foundations for stronger future growth," he said.</p>
<p>The pact was signed Tuesday by representatives of the central government, India Infrastructure Finance Co (IIFC), PowerGrid Corp and the World Bank. <br /><br />Under the agreement, the bank will provide $2 billion for state-run banks, with IIFC receiving $1.195 billion to fund infrastructure projects, and PowerGrid Corp getting $1 billion to upgrade India's power transmission system.<br /><br />"Today’s support will help maintain credit growth and continued infrastructure investments in the country," said Roberto Zagha, World Bank Country Director for India. <br /><br />"Supporting infrastructure is particularly important during the current crisis, not just to sustain the domestic economy at a time of reduced global demand, but even more to lay the foundations for stronger future growth,” Zagha said.<br /><br />Added IIFC chairman and managing director S.S. Kohli: “This loan will help IIFC increase the availability of long-term finance for infrastructure projects across a range of sectors including roads, power, airports, and ports. <br />“India's infrastructure needs have been estimated at between $100-150 billion per year, with realizations well short of this target," he said. <br /><br />The funding to IIFCL has two components -- IBRD loan of USD 1.195 billion long-term finance to infrastructure projects and a grant of USD 5 million for capacity building of IIFCL, which finances infrastructure projects.<br /><br />"This loan ... (will make) long-term financing available to infrastructure projects being done through public private partnerships... in a range of sectors, including roads, power, airports, and ports," the statement said.<br />The total cost of the Fifth Power System Development Project, aimed at strengthening of the transmission system, is USD 1.562 billion.<br />The loan will be utilised for strengthening transmission systems for Sasan, Mundra and Krishnapatnam Ultra Mega Power Projects and South-West interconnection. This would further result in the strengthening of the National Grid, it said.<br /><br />"This is a crucial time," World Bank Country Director for India, Roberto Zagha, said in a statement.<br />"Today’s support will help maintain credit growth and continued infrastructure investments in the country. Supporting infrastructure is particularly important during the current crisis, not just to sustain the domestic economy at a time of reduced global demand, but even more to lay the foundations for stronger future growth," he said.</p>
