World Bank approves two loans worth $500 mln to India

Washington, Jun 6 (UNI) The World Bank has sanctioned two loans totalling 500 million dollars to India to improve the vocational training and strengthen the road networks in Himachal Pradesh.

Loan amounting to 280 million dollars has been approved for the Indian Government to improve the country's vocational training system, while 220 million dollars sanctioned for Himachal Pradesh will be put towards infrastructural development in the state, the bank said in a statement.

To improve the vocational training system, the India Vocational Training Improvement Project is designed and will be implemented in 400 eligible Industrial Training Institutes (ITIs), the statement added.

''India is a fast growing economy with a rising demand for skilled workers,'' said Isabel Guerrero, World Bank Country Director for India.

On the loan given to Himachal Pradesh government, she said the State Roads Project, complementing the on-going World Bank-supported Himachal Pradesh Rural Roads Project, will improve the quality of the road network and will ensure speedier movement of agriculture products to markets.

It will also help grow alternative high valued crops and investment in agro-industry, leading to increased business activity and higher rural incomes,'' Ms Guerrero added.

The project will upgrade priority segments of its core road network, including widening, formation and pavement strengthening of about 450 km of roads, and implementation of ancillary social, environmental and bio-engineering measures.

It will also support periodic maintenance and minor rehabilitation of about 2,000 km of roads.

The total road network in the state is about 28,000 km, comprising 2,000 km of National Highways, 2,160 km of state highways, and 2,240 km of major district roads.

''A significant portion of the project's investments will be spent in road maintenance, including piloting innovative performance-based maintenance contracts,'' said Ke Fang, World Bank Economist and project team leader.

The 280-million-dollar loan has been sanctioned by the International Development Association (IDA), the World Bank's concessionary lending arm, for a period of 35 years with a 10-year grace period.

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