Washington, Sep 23(ANI): The World Bank on Tuesday approved a 4.3 billion dollars loan for India to finance infrastructure projects, to help maintain credit growth levels, employment growth, support social banking and help strengthen the economic recovery from the global financial crisis.
The loan includes a 2 billion dollar loan, which is designed for Banking Sector Support Loan, which would to boost the capital of state banks and maintain credit growth.
While, a loan of 1.2 billion dollars was to the India Infrastructure Finance Company Ltd. (IIFCL) to support its role to catalyze private financing for public-private partnerships in (PPPs) infrastructure and stimulates the development of a long-term local currency debt financing market.
A loan of 1 billion dollars was approved for the Power Grid Corporation of India for the Fifth Power System Development Project, in order to look into the shortage of power in the country. oberto Zagha, World Bank country director for India, said that the logic of these four loans is to support India's economic recovery by enabling enterprises to get access to credit and to enable investment in infrastructure.
He further said that it was a long-term need on infrastructure that India has so it makes sense to increase the spending to maintain the high level of employment. (ANI)