World Bank aid to support banking, infrastructure

The state-run Power Grid Corporation of India and India Infrastructure Finance Company Limited (IIFCL) are amongst the agencies who have signed agreements worth $ 1 billion and $ 1.195 billion respectively.

The funding to Power Grid will be used for Fifth Power System Development Project to strengthen the transmission system, said a statement from the bank.
The Centre has also signed an agreement for $ 2 billion to recapitalise state-run banks that require capital infusion in 2010-11.

The funds will also help contain the adverse effects of the global recession.
“This support will help maintain credit growth and continued infrastructure investments in the country,” said Roberto Zagha, World Bank Country Director for India.

“In the wake of the global crisis, supporting infrastructure is particularly important not only for sustaining the domestic economy during reduced demand, but also for laying the foundations for stronger future growth,” Zagha said.