Orissa government clinchedsecond WB loan for OSEDL-II

New Delhi, July 1 (UNI) The Orissa Government have successfully clinched the second instalment of the World Bank loan under the Orissa Socio-Economic Development Loan-II (OSEDL-II) amounting to 225 Million dollar.

According to a State Government release issued here today, the Orissa Government sent a high level team headed by its Chief Secretary Dr Subash Pani for negotiating the deal in Washington.

As per the agreement reached in the negotiations, the assistance will be released in two tranches, the first tranche of 150 Million dollar would be disbursed immediately. Significantly, a portion of which would be utilised for debt swap of high cost loans and the balance amount of 75 Million dollar would be disbursed in the last quarter of the current financial year. Under this loan operation, the IBRD and IDA component (concessional credit with grant component) would be in the ratio of 2 :1.

The OSEDL is a programmatic support which would consist of 3 to 4 operations. The first operation of 125 Million dollar was disbursed in November 2004 and based on the strong fiscal performance and implementation of economic reforms the Government of Orissa has qualified for the second operation. Achievements on this front include amendments to the Orissa Agricultural Produce Markets Act, 1956, which permits setting up of private market yards and also enables contract farming, enactment of the Orissa Industries Facilitation Act 2004, implementation of Public enterprises Reforms and Privatisation Policy, energy Sector Reforms, achievement of targets prescribed under the Orissa Fiscal Responsibilities and Budget Management Act, and achievements in the area of public sector delivery and Human development, especially rightsising of Government and implementation of health sector programme. The WB appreciated the achievements of the State Government both on the fiscal front and economic reforms front.

The total bank assistance under series of Orissa's Socio-Economic Development Loan is expected to be in the range of 650 to 850 Million dollar inclusive of the first and the second operations of 125 Million dollar and 225 Million dollars respectively over four to five years commencing from 2004 and will remain in force till 2009, the release added.

UNI/BKS DKS KP1741