Contents

Introduction ...................................................................................................................................... Literature Review .............................................................................................................................. Objectives, Methodology & Importance .......................................................................................... Project Cycle...................................................................................................................................... Contribution towards India ............................................................................................................... Country Assisting Strategy (2009-12) ............................................................................................... Reconstruction & Development Projects ......................................................................................... Conclusion ......................................................................................................................................... Bibliography ......................................................................................................................................

International Bank for Reconstruction & Development

Introduction
The International Bank for Reconstruction and Development (IBRD) aims to reduce poverty in middle-income and creditworthy poorer countries by promoting sustainable development through loans, guarantees, risk management products, and analytical and advisory services. Established in 1944 as the original institution of the World Bank Group, IBRD is structured like a cooperative that is owned and operated for the benefit of its 187 member countries. IBRD raises most of its funds on the world's financial markets and has become one of the most established borrowers since issuing its first bond in 1947. The income that IBRD has generated over the years has allowed it to fund development activities and to ensure its financial strength, which enables it to borrow at low cost and offer clients good borrowing terms. At its Annual Meeting in September 2006, the World Bank with the encouragement of its shareholder governments committed to make further improvements to the services it provides its members. To meet the increasingly sophisticated demands of middle-income countries, IBRD is overhauling financial and risk management products, broadening the provision of freestanding knowledge services and making it easier for clients to deal with the Bank.

Background
Founded in 1944 to help Europe recover from World War II, the International Bank for Reconstruction and Development (IBRD) is one of five institutions that make up the World Bank Group. IBRD is the part of the World Bank (IBRD/IDA) that works with middle-income and creditworthy poorer countries to promote sustainable, equitable and job-creating growth, reduce poverty and address issues of regional and global importance. Structured something like a cooperative, IBRD is owned and operated for the benefit of its 187 member countries. Delivering flexible, timely and tailored financial products, knowledge and technical services, and strategic advice helps its members achieve results. Through the World

Bank Treasury, IBRD clients also have access to capital on favorable terms in larger volumes, with longer maturities, and in a more sustainable manner than world financial markets typically provide. Specifically, the IBRD:

supports long-term human and social development needs that private creditors do not finance;

preserves borrowers' financial strength by providing support in crisis periods, which is when poor people are most adversely affected;

uses the leverage of financing to promote key policy and institutional reforms (such as safety net or anticorruption reforms);

creates a favorable investment climate in order to catalyze the provision of private capital;

provides financial support (in the form of grants made available from the IBRD's net income) in areas that are critical to the well-being of poor people in all countries.

Middle-income countries, where 70 percent of the world's poor live, have made profound improvements in economic management and governance over the past two decades and are rapidly increasing their demand for the strategic, intellectual and financial resources the World Bank has to offer. The challenge facing the IBRD is to better manage and deliver its resources to best meet the needs of these countries. To increase its impact in middle-income countries, IBRD is working closely with the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), the International Monetary Fund (IMF) and other multilateral development banks. In the course of its work, IBRD is also striving to capitalize on middle-income countries' own accumulated knowledge and development experiences and collaborates with foundations, civil society partners and donors in the development community.

Products and services

IBRD aims to reduce poverty in middle-income and creditworthy poorer countries by promoting sustainable development through loans, guarantees, risk management products, and (nonlending) analytical and advisory services.

IBRD has three main business lines: 1) Strategy and co-ordination services 2) Financial services 3) Knowledge services a. Poverty Assessments b. Social and Structural Reviews c. Public Expenditure Reviews d. Sector Reports e. Country economic Memoranda f. Knowledge Sharing At its Annual Meeting in September 2006, the World Bank with the encouragement of its shareholder governments committed to make further improvements to these services within a year. The World Bank originally began a program to upgrade its services for middle-income countries overhauling financial and risk management products, broadening the provision of free-standing knowledge services and making it easier for clients to deal with the Bank in 2002. The latest commitment to take further steps was an acknowledgment by the Bank that more needs to be done to meet the increasingly sophisticated demands of middle-income countries.

Financing of IBRD
IBRD raises most of its funds on the world's financial markets. It has become one of the most established borrowers since issuing its first bond in 1947 to finance the reconstruction of Europe

after World War Two. Investors see IBRD bonds as a safe and profitable place to put their money and their cash finances projects in middle-income countries. IBRD became a major player on the international capital markets by developing modern debt products, opening new markets for debt issuance, and by building up a broad investor base around the world of pension funds, insurance companies, central banks, and individuals. The World Bank's borrowing requirements are primarily determined by its lending activities for development projects. As World Bank lending has changed over time, so has its annual borrowing program. In 1998 for example, IBRD borrowing peaked at $28 billion with the Asian financial crisis. It is now projected to borrow between $10 to 15 billion a year. IBRD borrows at attractive rates on the capital markets thanks to its triple-A status that it has had with credit rating agencies since 1959. This has enabled it to borrow in U.S. dollars, for example, at an overall funding cost that comes close to that of the U.S. Treasury. IBRD enjoys its high credit rating because it is backed by the capital commitments of its 186 shareholder governments. It is also the result of IBRD's strong balance sheet, prudent financial policies, and its expected treatment as a preferred creditor when a country has difficulty in repaying its loans. IBRD has also profited from anticipating shifts in investor preferences and investing in the risk management and systems to take advantage of those trends. IBRD has to its credit a string of firsts in its borrowing program. These include the first currency swap in international markets in 1981, through to the introduction of the first global bond in 1989, to the first fully integrated electronic bond offering via the Internet in 2000. In 2003, the World Bank executed the first fully electronic swap auction. Innovations by IBRD have also supported its goal of promoting development. Although much of its borrowing is in U.S. dollars, IBRD has over the years offered bonds in more than 40 different currencies. Its issues in nascent capital markets have often been a catalyst for improving market infrastructure and efficiency. IBRD's earns an income every year from the return on its equity and from the small margin it makes on lending. This pays for IBRD's operating expenses, goes into reserves to strengthen the balance sheet and also provides an annual transfer to the International Development Association

(IDA). IBRD has raised the bulk of the money loaned by the World Bank to alleviate poverty around the world. This has been done at a relatively low cost to taxpayers, with governments paying in $11 billion in capital since 1946 to generate more than $400 billion in loans.

Payment of Operating Expenses

IBRD covers its operating expenses primarily out of its income. IBRD's earns an income every year from the return on its equity and from the small margin it makes on lending. This pays for IBRD's operating expenses, goes into reserves to strengthen the balance sheet and also provides an annual transfer to the International Development Association (IDA). IBRD has raised the bulk of the money loaned by the World Bank to alleviate poverty around the world. This has been done at a relatively low cost to taxpayers, with governments paying in $11 billion in capital since 1946 to generate more than $400 billion in loans.

Eligibility for IBRD clients

IBRD clients are middle-income and credit-worthy lower income countries. The Bank classifies a country according to the wealth of its population. Middle-income countries are defined as having a per capita income of between around US$1,000 and US$10,000, which may qualify them to borrow from IBRD. Low-income countries with a per capita income of less than $1,000 usually do not qualify for IBRD loans unless they are creditworthy. However, low-income countries are eligible to receive low or no interest loans and grants from IDA. India, Indonesia and Pakistan are examples of creditworthy low-income countries which are eligible for a blend of financial assistance from both IBRD and IDA. Middle-income countries that are served by IBRD have made enormous economic strides in the last few years but they still face daunting challenges to reduce poverty to meet the Millennium Development Goals, which set specific targets to be met by 2015. These countries account for two-thirds of the world's population and are home to more than 70% of the developing world's poor people who live on less than $2 a day. . While private capital flows have risen substantially, this flow has been concentrated in a limited number of countries. Only a minority of middleincome countries can be regarded as established bond market borrowers able to access the market regularly at a stable cost. Other countries within the group have only sporadic access or

none at all. Therefore, the majority of middle-income countries continue to rely on IBRD to mobilize investments in infrastructure, health, education, clean energy and the environment. IBRD helps clients gain access to capital and financial risk management tools in larger volumes, on better terms, at longer maturities, and in a more sustainable manner than they could receive from other sources. Unlike commercial banks, IBRD is driven by development impact rather than profit maximization. IBRD has also supported middle-income countries in times of crisis when their access to capital has dried up.

Demand for IBRD Services

Some middle-income countries no longer see the need for significant financial support from IBRD, because they have large foreign currency reserves and are in a good budget position. However, others still have large investment needs that include funds for public infrastructure projects and social services. Increasingly, IBRD is meeting the more sophisticated demands of its middle-income clients by providing financial services that protect them against exchange and interest rate risks and the turbulence of the commodity markets. In fiscal 2007, it carried out $5.4 billion in interest rate and currency risk management transactions on behalf of its members. In the same period, IBRD committed $12.8 billion for 112 projects. The Bank assists client countries not only through its finance but also by providing access to its development knowledge resources. The Bank's knowledge activities range from conducting country research, to developing analytic and conceptual frameworks for country assistance, to building the capacity for sustainable development within client countries.

Literature Review
India largest recipient of World Bank loans in 2009-10 India was the World Bank's favourite last fiscal when it came to extending financial aid in the form of loans, both among developing countries and the world's poorest nations. The World Bank, through its lending arms IBRD and IDA, committed USD 9.3 billion in financial assistance to India in the 2009-10 fiscal, more than the aid committed by the US and the European Union.

The International Bank for Reconstruction and Development (IBRD) committed USD 6.7 billion, or 15.1 per cent of its total lending in the fiscal, to India, according to government officials. In comparison, the second highest recipient, Mexico, got USD 6.4 billion. Next in line were South Africa (USD 3.8 billion), Brazil (USD 3.7 billion) and Turkey (USD 3.0 billion). IBRD serves middle-income countries with investment and advisory services. The World Bank's concessionary lending arm, the International Development Association (IDA), which helps the world's poorest countries, committed 17.7 per cent of its total aid, amounting to USD 2.6 billion, to India in 2009-10. In contrast, the IDA committed USD 1.4 billion to Vietnam and USD 0.9 billion each to Tanzania, Ethiopia and Nigeria. It aims to reduce poverty by providing interest-free credit and grants for programmes that boost economic growth, reduce inequalities and improve people's living conditions. Even in terms of actual disbursement, India was the largest recipient of World Bank financial assistance last fiscal, with a total of USD 4.7 billion -- IBRD (3.4 billion) and IDA (1.3 billion) -- being released, officials informed. The country was also the largest recipient of assistance from other external funding agencies like the International Fund for Agricultural Development (IFAD) and the UK's Department for International Development (DFID). World Bank, India to sign loan agreement for cleaning Ganga World Bank, the multilateral lending agency, and the government of India will sign a loan agreement worth Rs 7,000 crore for the National Ganga River Basin Project (NGRBA) for cleaning the river on Tuesday. "The Rs 7,000 crore National Ganga River Basin Project including $199 million interest-free IDA credit and $801 million low-interest IBRD loan from World Bank, will be signed tomorrow between the government of India and World Bank," an official statement issued said. The Project will help the NGRBA set up a state-of-the-art Ganga Knowledge Centre to act as a repository for the conservation of the Ganga. The NGRBA will fund investments like sewage treatment plants and sewer networks that are critical for reducing the pollution.

Besides, the Project will help strengthen the Central and State Pollution Control Boards for better monitoring the pollution, by modernising information systems and providing staff training. It will finance the upgradation of the Ganga water quality monitoring system and carry out an inventory of all sources of pollution. The Ganga, known as the most sacred river to Hindus, is a lifeline for millions of Indians who live along its course. Its sprawling basin accounts for one-fourth of the country's water resources and is home to more than 400 million Indians - or some one-third of India's population. However, the Ganga has the dubious distinction of being one of the world's most polluted rivers. The government developed a comprehensive vision for the cleaning-up and conservation of the Ganga, beginning with the establishment of the NGRBA in 2009. Crisis looming, think out-of-the-box: Mukherjee to World Bank Indian Finance Minister Pranab Mukherjee on Saturday said the World Bank needs to find ways to improve its capital base so that it can enhance lending to developing countries, underlining that with another crisis looming, prioritisation of activities is the need of the hour. At the top of the World Bank's list of priorities should be to address its lack of financial capacity, as well as that of the International Finance Corporation, and work toward a strong capital base as well as find creative ways to expand lending and investment in developing countries, Mukherjee said. The World Bank's focus needs to be on critical areas such as poverty alleviation, food price inflation, financing for climate change and meeting the energy needs of the poor, he stressed. "The International Development Association (IDA) needs to be put on a more sustainable footing, with donors giving priority to IDA over Trust Funds and also without weakening the resources of the International Bank for Reconstruction and Development (IBRD) and IFC," Mukherjee said in his intervention during the World Bank's Development Committee meeting on Global Development Issues and the World Development Report 2012 on Gender.

Asking the World Bank to give priority to upliftment of the poor, wherever the poor may be, without getting diverted by peripheral goals, Mukherjee reiterated the need to address the needs of middle income countries (MICs), which were the main borrowers from the IBRD. "They

often feel disconnected from many bank activities. Efforts should be made to regenerate interest in MICs toward the bank, particularly through enhanced financing, more knowledge products and a focus on the poor in MICs," he said. Stating that food price inflation needs to be tackled on a priority basis, he said this would require both short-term measures focusing on immediate food supply and safety nets and long-term measures to enhance agricultural productivity and output. "The bank will have to make substantial investment in this regard," he said. Mukherjee also evinced a need to generate additional and new finance for climate change, along with measures to encourage transfer of technology to developing countries. "Meeting the energy access needs of the poor is going to be a severe test for the bank. While climate concerns are legitimate, providing access to energy for the poor is a priority far more important than sustaining energy intensive lifestyles," he said. NHAI gets Rs. 202.5 Cr loan nod The World Bank has approved a $45 million (Rs 202.5 crore) technical assistance loan for the National Highways Authority of India (NHAI) to help improve its operational efficiency. The assistance will finance actions to strengthen the institutional capacity of NHAI to efficiently manage and operate its growing programme. The loan from the International Bank for Reconstruction and Development (IBRD), has a five-year grace period. Forty per cent of the total road traffic in India plies on the National Highway (NH) network and this share is likely to increase with vehicle growth touching 10 per cent per annum in recent years. About 30 per cent of the total NH network is still single-laned, 53 per cent double-laned and only 17 per cent four/six/eight-laned. It had been recognised that the condition of the NH network could pose a key constraint to sustaining high levels of growth. Loan for Tamil Nadu roads The World Bank has sanctioned a $50.7 million loan to India for upgrading roads in Tamil Nadu. The loan will be used to upgrade 1,380 km of roads and for two laning of 720 km road in the

states core network. This funding is additional financing to the Tamil Nadu Road Sector Project, which became effective on 31 October 2003, with a loan amount of $348 million. The additional loan from the International Bank for Reconstruction and Development (IBRD) has a 25-year maturity including a five-year grace period. Till date, the project has improved around 850 km of roads and upgraded 570 km of existing state highways to two lane roads. The additional financing will help meet a cost overrun, primarily caused by an increase in the prices of construction materials and an appreciation of the Indian rupee vis-a-vis the dollar. Centre signs pact for SUTP Centre has signed an agreement with the World Bank for WB-assisted Sustainable Urban Transport Project (SUTP). The SUTP has a loan component of about Rs 489.98 crore from International Bank for Reconstruction and Development (IBRD) and a grant of about Rs 94.39 crore from Global Environment Facility (GEF). The project is likely to be implemented at Pune and Pimpri-Chinchwad in Maharashtra, Indore in Madhya Pradesh, Naya Raipur in Chhattisgarh and Mysore in Karnataka. The projects will be executed over a period of five years. The SUTP aims at promoting environmentally sustainable transport. Wb to fund AP Projects The World Bank has signed an agreement with the Andhra Pradesh government to extend financial assistance entailing $770 million for execution of three projects in the state. The $320 million Andhra Pradesh Road Sector Project will upgrade about 429 km of priority state highways and finance long-term maintenance of over 6,000 km of the states core road network. The $300 million Andhra Pradesh Municipal Development Project will be selected and implemented by urban local bodies. Lastly, the $150 million Andhra Pradesh Rural Water Supply and Sanitation Project is designed to improve water supply and sanitation services in 2,600 villages across six districts of the state.

The loan for the Andhra Pradesh Road Sector Project is from the International Bank for Reconstruction and Development (IBRD) and has a maturity of 30 years, including a grace period of 5.5 years. The IBRD loan for Andhra Pradesh Municipal Development Project has a 28.5-year maturity period including grace period of 6.5 years. The credit from the International Development Association (IDA), the World Banks concessionary lending arm, for the Andhra Pradesh Rural Water Supply and Sanitation Project, carries a 0.75 per cent service fee, a maturity of 35 years and a 10-year grace period. India can reduce poverty within a decade: IBRD World Bank If the Indian economy maintains its present growth and income distribution levels, the countrys incidence of poverty could plummet from the current rate of about 35 per cent to just 6.3 per cent of its population by the year 2005, says the World Bank. This would be a tremendous achievement for a country which is home to the largest concentration of poor in the world, says the Bank. In a new report entitled India: Achievements and Challenges in Reducing Poverty, the Bank noted that Indias economy had grown by an average of six seven per cent over the past three years.India has made substantial gains against widespread deprivation over its last 50 years, said senior World Bank economist Zoubida Allaoua, the principal author of the report. The Bank recommends that the Indian government push for more growth, invest more capital in infrastructure such as roads, public transport, irrigation and flood protection measures, and mobilise more resources for public health and education. There has been a marked but slow decline in poverty since India became independent in 1947. At that time nearly half its population was living below the poverty line, the report says. Today, 50 years later, roughly a third of Indias people are poor. However, because of rapid population growth, Indias modest success in fighting poverty has been unable to reduce the overall numbers of poor. according to the report, in 1951, 164 million Indians were living in poverty, compared with 312 million in 1993-94. However, India has not yet achieved the momentum to lift the great majority of its poor into the countrys economic mainstream, the Bank noted. For example, its infant mortality rates are one of the highest in the world.

A third of Indias 105 million 6-10 year olds are out of school. For India, the lessons for the future are clear: promote growth and invest much more money in making people healthier and better educated, and spend more on the physical infrastructure which underpins a countrys growth at the local and national level, the report asserted. It argued that widespread poverty and inequality would continue to act as a brake on the even distribution of regional prosperity and that national development cannot be assured when so many people live without the basic amenities of life, and lack the means to better themselves. In another report released simultaneously and titled Everyones Miracle? Revisiting Poverty and Inequality in East Asia, the Bank pointed out that there are 900 million poor in Asia from India to Mongolia. Though poverty has reduced in most of these countries, Indias has been the slowest compared to Southeast Asian nations. But while poverty has fallen dramatically in East Asia (down 27 per cent from 1975-85, and a further 35 per cent from 1985-95), the decline has been much slower in India. Weve come a long way since 40 years ago when most Asians lived in deep poverty, with desperately low incomes, short life expectancy and limited to access to education, said Mr. Gautam Kaji, World Bank Managing Director for Operations. Growth had lifted millions out of poverty, he pointed out. For example, in 1975, six out of 10 East Asians lived in poverty, now only two out of 10 do. In countries such as China, Indonesia, Malaysia and the Philippines, where poverty reduction has been more successful, the World Bank says there is apprehension that too few are benefiting from rising national prosperity. After three decades in which rapid growth and reduced inequality were the hallmark of the East Asian economic miracle, inequality is becoming more widespread, the Bank warned.

Reforms have reduced poverty: IBRD Bank A World Bank report released at the India Development Forum (IDF) meet in Paris says economic liberalisation has done more to reduce poverty in India than government development

programmes. The report, titled India: Achievements and Challenges in Reducing Poverty, notes that some of the government programmes have in fact largely missed their supposed targets the poor and delivered the bulk of their benefits or subsidies to the politically or economically more advantaged. On the other hand, economic growth in India has widened opportunities at the bottom as well as near the top of the society, the Bank says, adding that this has raised the wages of landless rural workers since liberalization.

Overall, the reforms India started in 1991 hold the promise of considerable improvements in the living standards of the countrys 300 million poor, the Bank says. Inward looking industrialization strategies of the past could not achieve the rate of poverty alleviation possible with alternative policies, says the report. While praising the high growth rates in the past five years resulting from liberalization, the Bank cautions that much remains to be done to sustain this growth. High fiscal deficits, tremendous infrastructure problems, inefficient financial systems and heavily subsidized sectors like agriculture are problems facing the Indian government, it says. Over the past 50 years, there have been many achievements to Indias credit, but the pace (of poverty alleviation efforts) remains both slow and uneven ... and more likely to empower men than women, says the report. It adds that poverty reduction was far more responsive to overall growth of the economy than to various government efforts to direct resources to reduce poverty. The new surges of growth brought on by liberalisation should spur the government to re-examine rural poverty more than three-fourths of the total and extend the reforms to unleash productivity growth in agriculture which historically has contributed most to poverty reduction, says the report. Involving the private sector and non-governmental organizations in poverty eradication is critical, as is the need for high quality data, it adds. While some of Indias Asian neighbors have made a point of combining growth-oriented development with investments in health and education, India has not given the education of the poor the kind of priority it deserves. Some 33

million of the 105 million children aged between six and 10 years are out of school and working in low-wage jobs with little chance of improving their lot, points out the report. Modified state intervention essential for growth India must accelerate pace of reforms. Neglect of primary education has gone hand-in-hand with gender discrimination, and bridging this gap among the poor needs special efforts. A determined public policy action to eradicate gender discrimination is necessary, asserts the report. It is important that the poverty reduction strategy should strike a balance between investments that give significant dividends and subsidies that actually benefit better-off sections of the population and distort markets, says the Bank.

Objectives
We have following precise objectives of study 1. To study IBRDs project cycle. 2. To study IBRDs contribution towards India. 3. To study the Country Assistance Strategy (CAS) of IBRD with special reference to India. 4. To study the IBRDs role towards various state in the India. 5. To study the Reconstruction & Development activities undertaken by IBRD in India. To fulfill the above objectives, we have pursued the following methodology.

Methodology

The methodology adopted would be exploratory research using secondary data. The basic knowledge about the workings of World Bank will be gathered thorough secondary data available on internet and all related documents such as books, magazines, and publications available in the institute library. The quantum of information available on this subject matter is enormous and updated. The secondary sources such as internet and news articles cover almost all major information.

Importance
IBRD is actively involved in providing assistance to poor and developing nations in various ways since its inception. Although the pattern of IBRDs work has changed over years with the global scenario, its objectives have more or less remained same, i.e. to help poor and developing nations to develop. As India is emerging as fast developing economy, it needs to enhance its infrastructure to further pace up the development process to remain competent in this era of globalization. Indias main focus in this regard is towards Urban Development. IBRD is providing assistance to Indian for successful implementation of development strategies under its special initiative Country Assistance Strategy (CAS). Therefore we have decided to study IBRDs Country Assistance Strategy (CAS) in context of India, with special emphasis of Urban Development in India. IBRD has continuously contributed to Indias various reconstruction and development projects along with IDA undertaken by World Bank. These projects work as a strong catalyst in the path towards developed India. It seems important to throw some highlight on current projects which are approved and in active stage for India. As a result, some recent projects are included for discussion in report.

Project Cycle

The Banks method of operation is not to implement World Bank projects, but to provide financing and advice for projects which are owned and supported by the Indian government and the people and form part of their overall development agenda. It is important to note that the implementation of projects is managed by the government.

The government designates an office, referred to as the Project Implementing Agency (PIU), which is responsible for aspects such as procurement and selection of consultants and day-to-day work, monitoring, and evaluation. The Banks operational policies set guidelines to ensure that projects meet its own criteria such as social and environmental standards.

Country Strategy and Project Identification

IBRD works with a borrowing country's government and other stakeholders to determine how financial and other assistance can be designed to have the largest impact. After analytical work is conducted, the borrower and the Bank produce strategies and priorities for reducing poverty and improving living standards. Identified projects can range across the economic and social spectrum from infrastructure, to education, to health, to government financial management. IBRD and the government agree on an initial project concept and its beneficiaries, and the Bank's project team outlines the basic elements in a Project Concept Note. This document identifies proposed objectives, imminent risks, alternative scenarios, and a likely timetable for the project approval process. Two other Bank documents are generated during this phase. The Project Information Document contains useful public resources for tailoring bidding documents to the proposed project, and the publicly available Integrated Safeguards Data Sheet identifies key issues related to the Bank's safeguard policies for environmental and social issues.

Project Preparation The borrower government and its implementing agency or agencies are responsible for the project preparation phase, which can take several years to conduct feasibility studies and prepare engineering and technical designs, to name only a few of the work products required. The government contracts with consultants and other public sector companies for goods, works and services, if necessary, not only during this phase but also later in the project's implementation phase. Beneficiaries and stakeholders are also consulted now to obtain their feedback and enlist their support for the project. Due to the amount of time, effort and resources involved, the full commitment of the government to the project is vital. IBRD generally takes an advisory role and offers analysis and advice when requested, during this phase. However, the Bank does assess the relevant capacity of the implementing agencies at this point, in order to reach agreement with the borrower about arrangements for overall project management, such as the systems required for financial management, procurement, reporting, and monitoring and evaluation. Earlier screening by Bank staff may have determined that a proposed project could have environmental or social impacts that are included under the IBRD's Safeguard Policies. If

necessary, the borrower now prepares an Environmental Assessment Report that analyzes the planned project's likely environmental impact and describes steps to mitigate possible harm. In the event of major environmental issues in a country, the borrower's Environmental Action Plan describes the problems, identifies the main causes, and formulates policies and concrete actions to deal with them. From a social point of view, various studies aimed at analyzing a project's potentially adverse effects on the health, productive resources, economies, and cultures of indigenous peoples may be undertaken. An Indigenous Peoples Plan identifies the borrower's planned interventions in indigenous areas that may be needed, with the objective of avoiding or lessening potential negative impacts on the people. These plans are integrated into the design of the project.

Project Appraisal Appraisal gives stakeholders an opportunity to review the project design in detail and resolve any outstanding questions. The government and IBRD review the work done during the identification and preparation phases and confirm the expected project outcomes, intended beneficiaries and evaluation tools for monitoring progress. Agreement is reached on the viability of all aspects of the project at this time. The Bank team confirms that all aspects of the project are consistent with all IBRD operations requirements and that the government has institutional arrangements in place to implement the project efficiently. All parties agree on a project timetable and on public disclosure of key documents and identify any unfinished business required for final Bank approval. The final steps are assessment of the project's readiness for implementation and agreement on conditions for effectiveness (agreed upon actions prior to implementation). The Project Information Document is updated and released when the project is approved for funding.

Project Appraisal Documents Program Documents

Project Approval

Once all project details are negotiated and accepted by the government and the World Bank, the project team prepares the Project Appraisal Document (for investment lending) or the Program Document (for development policy lending), along with other financial and legal documents, for submission to the Bank's Board of Executive Directors for consideration and approval. When funding approval is obtained, conditions for effectiveness are met, and the legal documents are accepted and signed, the implementation phase begins.

Project Implementation The borrower government implements the development project with funds from IBRD. With technical assistance and support from the Bank's team, the implementing government agency prepares the specifications for the project and carries out all procurement of goods, works and services needed, as well as any environmental and social impact mitigation set out in agreed upon plans. Financial management and procurement specialists on the Bank's project team ensure that adequate fiduciary controls on the use of project funds are in place. All components at this phase are ready, but project delays and unexpected events can sometimes prompt the restructuring of project objectives. Once underway, the implementing government agency reports regularly on project activities. The government and the Bank also join forces and prepare a mid-term review of project progress. In addition, the IBRD's Report on the Status of Projects in Execution, a brief summary of all Bank-funded projects active at the end of each fiscal year, is available to the public. As projects close during the fiscal year, they are removed from this report, since their individual Implementation Completion and Results Reports are publicly disclosed at that time. The project's progress, outcomes and impact on beneficiaries are monitored by the government and the Bank throughout the implementation phase to obtain data to evaluate and measure the ultimate effectiveness of the operation and the project in terms of results.

Project Completion When a project is completed and closed at the end of the loan disbursement period, a process that can take anywhere from 1-10 years, IBRD and the borrower government document the results

achieved; the problems encountered; the lessons learned; and the knowledge gained from carrying out the project. IBRD operations team compiles this information and data in an Implementation Completion and Results Report, using input from the implementing government agency, co-financiers, and other partners/stakeholders. The report describes and evaluates final project outcomes. The final outcomes are then compared to expected results. The information gained during this exercise is also often used to determine what additional government measures and capacity improvements are needed to sustain the benefits derived from the project. In addition, the evaluation team assesses how well the entire operation complied with the Bank's operations policies and accounts for the use of Bank resources. The knowledge gained from this results measurement process is intended to benefit similar projects in the future.

Evaluation The Bank's Independent Evaluation Group assesses the performance of roughly one project out of four (about 70 projects a year), measuring outcomes against the original objectives, sustainability of results and institutional development impact. From time to time, IEG also produces Impact Evaluation Reports to assess the economic worth of projects and the long-term effects on people and the environment against an explicit counter-factual.

Project Investment Nearly 51% of the total Bank lending to India is by IBRD loans. This includes various developmental projects like Nathpa Jhakri Project, National Dairy Project and Upper Krishna Irrigation. India had 450 projects of which around half were carried out by IBRD. Its assistance has been extended to the Railways, Power, Fertilizer and Telecommunication sector. Satluj Jal Vidyut Nigam (formerly Nathpa Jhakri Power Corporation Ltd) has run up all six 250MW units of the Nathpa Jhakri Hydroelectric Power project. Four of the units have already been commissioned, and the last two (Units #1 and 2) began working in March 2004, four months ahead of schedule. As a whole, Nathpa Jhakri boasts the largest and longest headrace tunnel, largest desilting chambers, deepest and largest surge shaft, and the largest underground power complex. The

project has added 1,500MW capacity to the Indian Northern Grid since the the first unit was commissioned in October 2003. The Union power ministry is reportedly treating this as a benchmark for future hydroelectric projects. The Nathpa Jhakri project, which began in 1993, is for a 1,530MW installation on the upper reaches of the river Satluj in the Kinnaur and Shimla districts of Himachal Pradesh, in the foothills of the Himalayas. The project includes a 60.5m-high dam and underground desilting complex and a 27MW Francis unit. It supplies Himachal Pradesh and the Northern Regional Grid States in India. A highvoltage transmission system (220kV) transports power from the Nathpa Jhakri hydro station to Haryana's grid system. Apart from its various projects mentioned above IBRD recently invested in development of transportation facility in India. Its investment were as below. IBRD - $350 million: Lower freight and passenger transport costs will reduce transport bottlenecks affecting economic development and will benefit the traveling public, agricultural and industrial producers, consumers, and local communities in Andhra Pradesh. Total cost: $485.5 million. IBRD - $51.5 million: Technical assistance will be provided to state governments to support road infrastructure finance and maintenance reform. Total cost: $68 million. IBRD - $50 million: Assets lost in the floods and cyclones in Andhra Pradesh last year will be restored and actions will be taken to reduce future hazards. Total cost: $220 million.

Contribution towards India

With a population of just over 1 billion, India is the worlds largest democracy. In the past decade, the country has witnessed accelerated economic growth, emerged as a global player with the worlds fourth largest economy in purchasing power parity terms, and made progress on most of the Millennium Development Goals. However, poverty remains a major challenge. According to the revised official poverty line, 37.2% of the population (about 410 million people) remains poor, making India home to one third of the worlds poor people. Resources generated from recent growth are now being invested into a set of very ambitious programs to deliver services to the poor. These programs -- to provide elementary education, basic health care, health insurance, rural roads and rural connectivity, and other services -- aim at realizing the fundamental rights of the people. These programs are achieving partial results on the ground. Between 2003 and 2009, the number of out-of-school children declined from 25 million to 8 million (less than 5% of the 6-14 age groups). Leprosy, polio, and TB are almost under control and the spread of AIDS has been kept in check. Large numbers of women have been mobilized into self-help groups to generate new livelihood opportunities. Massive new initiatives are being pioneered that are revolutionizing the way services are being delivered to low-income groups. The urgency of addressing Indias development challenges has been exacerbated by the global economic crisis of 2007/09. Although Indias economy grew at 6.1% in the last quarter of 2009, which was among the highest growth rates in the world, this still represents a significant dip from the peak of 9.7% growth in fiscal year 2006/07. With a mix of monetary and fiscal tools, the Government responded fairly quickly to the financial crisis, and was successful in shielding the country from the fallout felt throughout the world. Nevertheless, although the Mid-Term Appraisal of the Eleventh Five-Year Plan (2007-2012) shows Indias economy to have rebounded, there are indications that economic uncertainty may affect the remainder of the Eleventh Plan period. It is now clear that a number of targets will only be met under the next Plan.

To support India in achieving its long-term vision of a country free of poverty and exclusion, the IBRDs Country Strategy for India for FY 2009-2012 (CAS) is closely aligned with the objectives outlined in the country's Eleventh Plan. IBRD lending to India has diverged from initial plans spelt out in the Country Strategy due to the impact of the global financial crisis, the IBRDs efforts to refocus, realign and consolidate the India program, and the increased demand from the Government for more financing. In FY10, the IBRD lent a record $9.2 billion to India, compared to $2.3 billion in FY09. Fourteen new projects were added in FY10, and the project pipeline has grown in light of increased demand from the Government of India. The average size of requested projects has increased. And, the volume of Bank lending has shifted further towards infrastructure, the delivery of essential social services, and increasing engagement on urban issues and agriculture.

IBRD lending to India is organized around the following key challenges: 1. Achieving Rapid and Inclusive Growth Indias integration into the global economy has been accompanied by impressive economic growth that has brought significant economic and social benefits to the country. Nevertheless, disparities in income and human development are on the rise. A large section of the population especially the poor, Scheduled Castes, Scheduled Tribes, Other Backward Classes, minorities and women - lack access to the resources and opportunities needed to reap the benefits of economic growth. To assist the government in achieving rapid inclusive growth, IBRD is supporting activities which address both cyclical and structural impediments to growth, as well as the constraints to making growth inclusive: Building Strong Partnerships with Low-Income States While Indias higher-income states have successfully reduced poverty to levels comparable with the richer Latin American countries, its seven poorest states - Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa, Rajasthan, and Uttar Pradesh -lag behind their more prosperous counterparts and are home to more than half of Indias poor. IBRD is increasing support to kickstart development in these low-income states by helping them to develop into attractive investment destinations, and raise the standards of living of their people by improving the delivery of public services.

In Bihar, the IBRD is supporting critical structural reforms (recently closed Bihar Development Policy Loan I), infrastructure development, and the building of rural livelihoods (Bihar Rural Livelihoods Project). It is helping the state recover from the devastating 2008 Kosi river floods (Bihar Kosi Flood Recovery Project, $220 million), and supporting the development of a comprehensive disaster management program. A grant for Flood Management Information System is helping to reduce the states vulnerability to floods. Several Bank-supported national programs such as the Sarva Shiksha Abhiyan and the National Highways program - also assist Bihar. Orissa, until the turn of the millennium, was among the poorest and the most highly indebted states in the country. Today, it is recognized as a state in transition. IBRD has supported the state for over a decade. Two IBRD Development Policy Loans/credits have supported the states own efforts at structural reform in public financial management, investment climate, governance and accountability. A third Development Policy Loan will focus on inclusion and service delivery, where critical challenges remain. The Bank is also supporting investments in the state in core areas of infrastructure development (Orissa State Roads Project) and poverty reduction (Orissa Rural Livelihoods Project; Community Tanks Management Project). Agricultural and Rural Development In the last two years, the agriculture sector has grown at only about 2.5-3% on account of lower rainfall and the worst drought since 2002/03. Going forward, it will be essential for India to build a productive, competitive, and diversified agricultural sector and facilitate rural, non-farm entrepreneurship and employment. Encouraging policies that promote competition in agricultural marketing will ensure that farmers receive better prices. IBRD is supporting the sector through the following initiatives: Raising agricultural productivity: In a number of states including Andhra Pradesh, Karnataka, Kerala, Madhya Pradeh, Maharashtra, Orissa, Rajasthan, Tamil Nadu, and Uttar Pradesh, IBRD is improving soil and water conservation on degraded lands, rehabilitating and modernizing surface irrigation systems and reviving traditional rain water harvesting systems, and assisting farmers to diversify crops and reclaim saline lands. The Bank is also working to raise agricultural

productivity by linking public research organizations and farmers to promote the use of agricultural innovations. Improving rural livelihoods: IBRD's rural livelihoods projects (in Andhra Pradesh, Bihar, Chattisgarh, Karnataka, Madhya Pradesh, Orissa, Rajasthan, and Tamil Nadu) support the empowerment of the rural poor and the development of livelihoods in both the agriculture and non-agriculture sectors. Providing technical assistance to the Government of India to reform and improve its agriculture insurance program: Given that agriculture remains highly dependent on the vagaries of nature, this support is helping to improve the agriculture insurance program, providing better risk mitigation and social protection options to the 110 million farmer households in the country, most of whom are small and marginal farmers. Infrastructure Indias rapidly growing economy has been placing huge demands on power supply, roads, railways, ports, transportation systems, and water supply and sanitation. But, bottlenecks in both urban and rural infrastructure have been eroding the countrys competitiveness. The Government of India has increased infrastructure investments under the Eleventh Five Year Plan. However, with India's low taxation base only some 15-16% of GDP is collected as taxes in India compared to 25-40% in developed countries - the country is unable to invest the required amounts through its budgetary resources. As such, IBRD support to improving Indias infrastructure is critical, and the Bank's country strategy advocates greater investments in infrastructure as a priority to attract investment and generate employment. IBRD support to the sector includes: Improving Infrastructure: The Government is encouraging private participation in the expansion of critical infrastructure. To support this, the World Bank, in September 2009, agreed to extend $1.195 billion to the India Infrastructure Finance Company Limited (IIFCL) to help finance public-private partnerships in infrastructure, especially in the roads, power and ports sectors.

Transport: IBRD has supported the states of Gujarat and Andhra Pradesh to upgrade their state highways. It is now helping to upgrade rail and road connectivity in Mumbai; improve state highways in Andhra Pradesh, Himachal Pradesh, Kerala, Mizoram, Orissa, Punjab, Tamil Nadu and Uttar Pradesh; construct a section of the Golden Quadrilateral in Uttar Pradesh and Bihar; and upgrade rural roads in select districts of Himachal Pradesh, Rajasthan, Jharkhand and Uttar Pradesh. The Bank is also supporting the improvement of urban transport in the cities of Pune and Pimpri-Chinchwad in Maharastra, Indore in Madhya Pradesh, Mysore in Karnataka and Naya Raipur in Chattisgarh. Finally, the Bank is planning to support the improvement of narrow national highways through the National Highway Interconnectivity Improvement Program. It also proposes to support the Eastern Dedicated Railway Freight Corridor which aims to increase the railways share of the freight market, thus reducing transport costs, as well as fuel consumption which could directly contribute to a reduction in carbon emissions.

Energy: The Government of India is increasingly tapping its vast hydropower resources. It has set the target for an optimum power mix at 40% from hydropower and 60% from other sources. In the past, IBRD has supported India in building its largest hydropower plant at Nathpa Jhakri in Himachal Pradesh and is now helping the country augment the supply of hydropower. Support for the 412 MW run-of-the-river Rampur Hydropower plant on the Satluj River in Himachal Pradesh is ongoing. Two other hydropower projects are in the pipeline; a 444 MW project on the Alakananda river in Chamoli district in Uttarakhand, and the other at Luhri, further downstream from Rampur in Himachal Pradesh. The Bank is also supporting the efficient transmission and distribution of power to consumers. It has helped Powergrid, the national power transmission agency, to emerge as a world class agency. In September 2009, IBRD extended a loan of $1 billion to Powergrid to strengthen and expand five transmission systems in the northern, western and southern regions of the country. At the state level, improvements in transmission and distribution are being supported in Haryana and Maharashtra. Urban Development: In the next 20-25 years, Indias urbanization level is expected to rise from the present 30% to 40- 50%, with over 60 cities of 1 million plus population contributing about 70% of Indias GDP. Yet, Indias growing cities and towns face m ajor challenges in creating

adequate infrastructure including in the transportation, water, solid waste, and power sectors. IBRD is helping streamline urban transport in Mumbai and improve the delivery of urban civic services in Andhra Pradesh, Tamil Nadu, and Karnataka. The Bank has also sought to bring in global best practices in the urban water sector. A successful pilot has helped to provide continuous, reliable water supply in three urban areas in Karnataka. Going forward, it will be essential for India to introduce policy and institutional reforms in land use planning, municipal finance, institutional models, and invest in infrastructure and service delivery to manage its cities efficiently. While state governments have the more critical role in transforming Indias cities, the Government of Indias support through national programs is significant. IBRD support for the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) is under preparation.

Financial Sector Development and Support to Small and Medium Enterprises: Longer-term local currency financing, which could fund large scale infrastructure projects, is in short supply in India. Moreover, poorer households and small and medium enterprises (SMEs) have limited access to banking services, while insurance and equity market penetration in rural areas remains very low. In September 2009 IBRD agreed to extend budgetary support of $2 billion to the Government of India in support of its economic stimulus measures to counter the effects of the global financial crisis. This included the injection of capital into some public sector banks to help ensure the expansion of good credit to the SME sector, as well as for the development of infrastructure and the rural economy. The Bank also continues to fund the implementation of the Government of Indias financial sector reform program, support rural credit cooperatives - which are crucial for channeling agricultural credit to farmers, and provide technical assistance for improving the Government's agricultural insurance program, including weather-indexed insurance for farmers. It is also supporting SIDBI in scaling up sustainable and responsible microfinance to the underserved areas of the country. 2. Ensuring Development is Sustainable Indias remarkable economic growth has been clouded by a degrading environment. The country is also very vulnerable to climate change on account of its high levels of population density,

poverty, stressed ecological systems, and a substantial dependence on natural resources of much of Indias population. The following areas will thus require long-term vision and urgent action:

Protecting Indias fragile environment - air, water, forests and bio-diversity - in the face of the rising pressures created by economic success

Adapting to climate change and the growing scarcity of water Coping with accelerating urbanization through strengthened urban governance and environmental management

Improving energy efficiency and ensuring adequate energy supplies

IBRD is in the process of articulating a vision for an environmentally sustainable future for India (India 2030), and has projects in the pipeline to support the National Ganga River Basin Authority and industrial pollution management. Support to the sector includes:

Water: Climate change could impact India more than most other countries, and its impact will most likely be felt first and foremost in the water sector. IBRD has therefore piloted a new Drought Adaptation Initiative in Andhra Pradesh that will help farmers adapt to warmer and more drought-like conditions. An Integrated Coastal Zone Management Project that seeks to protect India's coastal areas while also ensuring the livelihoods of the people living along the coastline is in the pipeline. The Bank has also completed studies on groundwater resources and low carbon growth.

Energy: IBRD is supporting India in its efforts to produce clean, efficient, and renewable energy. It is helping the country to tap the hydropower resources in the Himalayan region, as well as supporting the rehabilitation of old and inefficient coal-fired power plants in West Bengal, Maharashtra, and Haryana. The Bank is also helping to strengthen Powergrid's power transmission networks to ensure that the power produced reaches consumers efficiently and losses in transmission are reduced. It is also seeking to expand support for promoting energy efficiency in various sectors ranging from small and medium enterprise, to chillers. 3. Increasing the Effectiveness of Service Delivery Most public programs suffer from varying degrees of ineffectiveness, poor targeting, and wastage of resources. In the current economic climate, India will have to dramatically improve

the impact of every rupee spent. IBRD is working with the Government of India to improve the delivery of key public services through systemic governance and institutional reforms of public sector service providers, decentralization of responsibilities, promoting effective systems of transparency and accountability, effective monitoring of service delivery, and expanding the role of non-state service providers.

Elementary Education: Since 2001, India has brought some 20 million children into school under the worlds largest elementary education program the Sarva Shiksha Abhiyan (SSA). Many of Indias states are now approaching universal primary enrollment or have already achieved it. Since 2003 IBRD support has helped scale up the program, improve the quality of learning, and assess learning outcomes. IBRD evaluations and research have provided recommendations for improvements. The program is now focused on bringing the hardest-toreach children into primary school, raising access to upper primary education, and improving retention and learning outcomes.

Secondary Education: With improved enrolment and retention in elementary school, the need for universalizing secondary education as a means to break the cycle of poverty has gained importance. The IBRD is preparing to support the Government of Indias new centrally sponsored scheme for secondary education, the Rashtriya Madhyamik Shiksha Abhiyan (RMSA), with an estimated $650 million. This support is largely based on its analysis of secondary education published in 2009 (Vol 1; & Vol 2 ) Skills: Equally important is the building of skills among Indias rapidly rising work force, whose ranks are joined by some 8-9 million new entrants each year. Presently, nearly 44 % of Indias labour force is illiterate and only 17 % has secondary schooling. Moreover, the quality of most graduates is poor and employers offer very little upgrading of skills; only 16% of Indian manufacturers offer in-service training compared to over 90% in China. To help produce engineers of international standards, IBRD has supported improvements in the quality of education in engineering institutes in 13 states. It is also supporting 400 Industrial Training Institutes (ITIs) to become centers of excellence in technical skills that are in demand. Much of

this support is based on research conducted by the World Bank on improving the vocational education and training system for skill development in India.

Health: The health sector in India presents a mixed picture. Despite continuous improvements in health indicators, progress is slow and has not matched the impressive gains in economic growth during the past decade. Inadequate access to effective and good quality health services for a large proportion of the population largely accounts for the slow improvement in health outcomes. To help India achieve the MDGs for health, IBRD increasingly focuses on improving governance and accountability in the delivery of health services. Ongoing IBRD projects support national programs for disease control - such as kala azar, polio and malaria, HIV/AIDS, and TB. They also support child nutrition and reproductive and child health programs. Other projects are working to strengthen state-level systems for rural healthcare (Rajasthan, Tamil Nadu, Karnataka), as well as national programs for food and drug regulation, and disease surveillance. The Bank has previously successfully supported India in eliminating leprosy as a national health problem, and in bringing the WHO- recommended DOTS TB treatment to all districts in the country.

Safety Nets: The global economic crisis has lent new urgency to strengthening safety nets for the poor and vulnerable. IBRD is in the process of extending support to the Government of India for the Rastriya Swasthya Bima Yojana - or National Health Insurance Scheme - to expand and improve the effectiveness of health insurance for households below the poverty line. Once the project is completed, it is expected that the number of beneficiaries receiving treatment under the program would reach around half a million per annum. Water Supply and Sanitation: The Banks Water Supply and Sanitation projects focus on improving access to water and sanitation services in a cost effective and sustainable manner.

Rural Water Supply and Sanitation: Since 1991, World Bank support has helped India first pilot and then scale up the RWSS Reform Program, supporting the evolution of models for the provision of efficient and sustainable services. Bank projects (in Maharashtra, Karnataka, Uttar

Pradesh, Kerala, Uttarakhand, Punjab, Andhra Pradesh) have continued to increase the role of the Panchayati Raj Institutions and improve the recovery of operations and management costs. In all, the Bank will soon have provided over $1 billion in support to the sector, benefiting about 25 million rural people so far.

Urban Water Supply and Sanitation: The Karnataka Urban Water Supply Improvement Project has demonstrated that 24x7 water supply is indeed possible in urban India. This has led to increased demand for such services around the country. In addition, comprehensive studies are being undertaken in Maharastra, Rajasthan and Haryana to design the water supply and sanitation aspects of the proposed JNNURM+ project.

Lending At the end of June 30, 2010, the World Bank group had 75 active projects in the country. The net commitment for these projects was about $21.4 billion. New lending in FY10 (1 July 2009- 30 June 2010) amounted to $9.3 billion.

Total IBRD/IDA Commitments as of end FY10: $21.4 billion (by fiscal year, in nearest $ billion) Commitments New Lending Total Commitments (Active Projects) Total No. of Active Projects FY05 FY06 FY07 FY08 FY09 FY10 2.9 12.8 64 1.4 11.3 56 3.7 14.3 67 2.1 13.8 60 2.3 14.9 61 9.3 21.4 75

Country Assisting Strategy (2009-12)

IBRDs Country Assisting Strategy (CAS) for India for 2009-2012 focuses on helping the country to fast-track the development of much-needed infrastructure and to support the seven poorest states achieve higher standards of living for their people. The strategy envisages a total proposed lending program of US$14 billion, for the next three years, of which US$9.6 billion is from the International Bank for Reconstruction and Development (IBRD) and US$4.4 billion (SDR 2.982 billion equivalents at the current exchange rate) from the International Development Association (IDA). Giovanna Prennushi, IBRD Economic Advisor talks about the key points of the India Strategy. The strategy is closely aligned with the Government of Indias own development priorities expressed in the Eleventh Five Year Plan. It was arrived at after a series of consultations with a broad range of stakeholders including the government and civil society. Under the strategy, the Bank will use lending, dialogue, analytical work, engagement with the private sector, and capacity building to help India achieve its goals.

Maintaining rapid and inclusive growth Infrastructure: For India's rapid and sustained growth, major investments in power, transport, water, and urban development are needed. Inadequate power supply remains a critical constraint to growth; while GDP grew at an average of about 8% a year over the past five years, electricity generation only grew at an average of 4.9% per year. The national and state highway networks have not kept pace with the tremendous growth in demand for road transport: only about 30% of state highways are two-lane and more than 50% are in poor condition. Inadequate urban infrastructure is hampering the expansion of growth centers. While the Eleventh Plan foresees a major role for private sector involvement in infrastructure development through PPPs, these may

not materialize to the extent hoped for in the aftermath of the global financial crisis. The Government of India has requested IBRD to specially focus on infrastructure investment in its new strategy, including on strengthening the capacity of government agencies to design and manage public-private partnerships (PPPs). Rachid Benmessaoud, Acting Country Director for India, talks about the importance of infrastructure for India's growth.

Skills: The shortage of skills is preventing large segments of the population from being part of India's growth story. Nearly 44% of Indias labor force is illiterate, only 17% of it has secondary schooling, and enrollment in higher education is just 11%. This compares unfavorably with, for example, China, where access to secondary education is almost universal and enrollment in higher education exceeds 20%. Moreover, the quality of most Indian graduates is poor and employers offer very little skills upgrading (16% of Indian manufacturers offer in -service training to their employees, compared to over 90% of Chinese firms). The informal sector employs over 90% of the workforce, but there is very little investment or opportunity for formal `skilling for informal workers and enterprises. Agricultural Growth: Low agricultural productivity is keeping some 60 percent of Indias population behind. Shortages of basic rural infrastructure - from roads to electrification - are hindering the growth of off-farm activities. No doubt, agricultural growth has been faster over the past five years (4.7% per year)- facilitated by very good monsoons, greater production of high-value fruits, vegetables, and dairy products, an increase in the minimum support price for grains, and the sudden increase in global prices for agricultural products. But, sustaining this level of performance over the longer term will be difficult without addressing several policy and structural constraints, including a myriad of restrictions, subsidies, support prices, sector governance issues, as well as the tiny size of landholdings and years of underinvestment. The Indian Government has asked IBRD to place special emphasis on agricultural development in its new strategy.

Making development sustainable

Most environmental indicators suggest that growth is extracting an increasing toll on the country's natural resources - water, land, forests, soils and biodiversity - and leaving a larger pollution footprint. India is highly vulnerable to climate change; cyclones, floods and droughts are happening with increasing frequency, and the Himalayan glaciers that feed Indias largest rivers show clear signs of retreat. Indeed, climate change will impact India first and foremost through its water resources. Rising temperatures will also affect agricultural yields, forests, and marine and coastal biodiversity. India will need to better manage these resources (particularly water) and reduce the burden that environmental degradation is imposing on the population, particularly on the most vulnerable groups.

Increasing the effectiveness of service delivery While much progress has been made on primary school enrollment, improvements have been elusive in other sectors, particularly health. Although deaths from TB have fallen and polio cases have reduced dramatically in 2008, child malnutrition levels are worse than in Sub-Saharan Africa, despite large expenditures. No Indian city provides water 24/7, only half the population has access to safe drinking water, and less than a third has access to sanitation. Public services fall short largely because they have little or no accountability to the ultimate client, and outdated management systems are unable to provide the information needed for decision-making. These issues are particularly acute in centrally sponsored schemes which are designed and funded by the central government but implemented by the states and lower echelons of government. Given the importance of these schemes, systemic improvements in design and governance are crucial to get results from public spending. The Government of India has requested IBRD to place special emphasis in its new strategy on centrally sponsored schemes that aim to achieve the MDGs. The Bank will focus on increasing accountability to citizens, decentralizing responsibilities, and enhancing private sector participation in the delivery of these services.

Strategies for states Given Indias enormous size and diversity, the Bank will adopt different strategies for states depending on their needs, stages of development, and capacity for project implementation. Special strategies will also be adopted for the Northeastern and Himalayan states.

Low-income states The new strategy devotes more resources to engaging with Indias seven low-income states Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa, Rajasthan, and Uttar Pradesh - which are home to more than half of Indias population. Here, the Bank will focus on poverty reduction and on achieving the Millennium Development Goals (MDGs). Intensive technical assistance will be provided to help these states develop their administrative capacity. Bank lending to these states will primarily be in the form of low-interest IDA credits as well as technical and advisory services.

Middle-income states India's richest states already have incomes comparable to lower middle income countries, with incomes being some five times higher than those in the poorest states. This gap is higher than most other democratic societies. In these states, the Bank will provide support on two fronts: fighting poverty in their lagging regions, and addressing the complex challenges emerging from rapid growth. States such as Andhra Pradesh, Karnataka, Punjab, Tamil Nadu, Haryana, Gujarat, and Maharashtra will be helped to forge the institutions needed in a middle income economy. Cutting-edge analytical work and the best international expertise will be brought to bear upon complex problems where there are yet no clear solutions. Lending to these states will be in the form of competitively priced IBRD loans, with the International Finance Corporation (IFC) the Banks private sector arm providing support for private sector clients.

Engaging the Center IBRD will continue to assist the central government by providing comprehensive analytical work to underpin policy and institutional reform and to improve the implementation of central government projects on the ground. Under the Sarva Siksha Abhiyan (SSA) for example, while schools are now more accessible and gender parity has been reached, the focus will now be on improving the quality of education provided. In the power sector, the Bank will continue to support Powergrid, Indias national electricity transmission agency, which it has helped to grow into a world-class institution.

Key Studies IBRD will also support some key multi-year, cross-sectoral studies on important issues confronting policymakers, including poverty and exclusion, skills and job creation, low-carbon growth, the challenges of rapid urbanization, and the management and development of water resources.

Public Private Partnerships IBRD and IFC are collaborating to bring India cutting-edge expertise to deal with emerging issues in Public-Private Partnerships (PPPs), tailored to Indias needs. While this work has so far been the strongest in infrastructure - power transmission, roads, irrigation and rural infrastructure, urban development - it will now be extended to agribusiness, health and education, and renewable energy. The Bank and IFC are also working together on long-term finance: through the proposed India Infrastructure Finance Co. Ltd. Project (IIFCL).

Reconstruction & Development Projects

West Bengal Accelerated Development of Minor Irrigation
Approval Date: 4 Oct, 2011 Commitment for Entire Project (amount in millions) Product Line IBRD Commitment IDA Commitment IBRD + IDA Commitment IBRD/IDA 125 125 250 Lending Instrument Grant Amount Total Project Cost Specific Investment Loan 0 300

The objective of the West Bengal Accelerated Development of Minor Irrigation Project for India is to enhance agricultural production of small and marginal farmers in the project area. There are three components to the project. The first component is strengthening community-based institutions. This component will enable community-based institutions, mainly Water User

Associations (WUAs), to assume responsibilities for management, operation, and maintenance of the minor irrigation schemes to be constructed under the project. The second component is irrigation system development. This component will improve availability of water for agriculture and fisheries by developing new minor surface and ground water irrigation schemes on areas that are currently cultivated under rain fed conditions. The third component is Agricultural Support Services (ASS). This ASS component will have three sub-components, namely agriculture, horticulture, and fisheries. The component will enhance agriculture-based rural livelihoods by increasing production of agriculture, horticulture, and fisheries. The fourth component is project management. This component will be supported to take charge of coordination and management of the implementation of all project activities.

Second Karnataka State Highway Improvement

Approval Date: 24 march, 2011 Commitment for Entire Project (amount in millions) Product Line IBRD Commitment IDA Commitment IBRD + IDA Commitment IBRD/IDA 350 0 350 Lending Instrument Grant Amount Total Project Cost Specific Investment Loan 0 1005

The objective of the Second Karnataka State Highway Improvement Project is to accelerate the development of the core road network through leveraging public sector outlays with private sector financing and improving the institutional effectiveness of the road sector agencies to deliver effective and safe roads to users. There are four components to the project. The first component of the project is road improvement works. This component will support capital improvement and maintenance works of selected priority core road network through a combination of traditional contracts and Public Private Partnership (PPP) concessions. The second component of the project is highway financing modernization. This component will assist Karnataka Road Development Corporation Limited (KRDCL) in implementing the concept of co-financing with private financial institutions through technical assistance and pilot transactions. The third component of the project is road safety improvement. This component

will assist the Government of Karnataka (GOK) to respond to the growing road safety problems in Karnataka with comprehensive strategic and institutional measures, consistent with the main thrusts of the 2007 sundar committee report and the findings of the road safety management capacity review. The fourth component of the project is road sector policy and institutional development. This component will support implementation of a new medium-term Institutional Development and Strengthening Action Plan (IDSAP) for the period 2010-2016.

National Ganga River Basin Project

Approval Date: 31 may, 2011 Commitment for Entire Project (amount in millions) Product Line IBRD Commitment IDA Commitment IBRD + IDA Commitment IBRD/IDA 801 199 1000 Lending Instrument Grant Amount Total Project Cost Specific Investment Loan 0 1556

The objectives of the National Ganga River Basin Project for India are to support the National Ganga River Basin Authority (NGRBA) in: (a) building capacity of its nascent operational-level institutions, so that they can manage the long-term Ganga clean-up and conservation program; and (b) implementing a diverse set of demonstrative investments for reducing point-source pollution loads in a sustainable manner, at priority locations on the Ganga. There are two components to the project, the first component being institutional development. The objectives of this component are to build functional capacity of the NGRBA's operational institutions at both the central and state levels, and to provide support to associated institutions for implementing the NGRBA program. Its sub-components include: (i) NGRBA operationalization and program management, (ii) technical assistance for Urban Local Body (ULB) service providers, and (iii) technical assistance for environmental regulators. The second component is the priority infrastructure investments. The objective of this component is to finance demonstrative

infrastructure investments to reduce pollution loads in priority locations on the river. The four main sectors of investments are: municipal wastewater management, industrial pollution control, solid waste management and river front management. The investments are intended to exemplify, among other attributes, the high standards of technical preparation and implementation, sustainability of operations, and public participation envisaged in the NGRBA framework. This component will also support innovative pilots, for new and transformative technologies or implementation arrangements.

Eastern Dedicated Freight Corridor I

Approval Date: 31 May, 2011 Commitment for Entire Project (amount in millions) Product Line IBRD Commitment IDA Commitment IBRD + IDA Commitment IBRD/IDA 975 0 975 Lending Instrument Grant Amount Total Project Cost Adaptable Program Loan 0 1458.44

The objectives of the Eastern Dedicated Freight Corridor (DFC) Project for India are to (a) provide additional rail transport capacity, improved service quality and higher freight throughput on the 343 km Khurja-Kanpur section of the Eastern rail corridor; and (b) develop the institutional capacity of Dedicated Freight Corridor Corp (DFCCIL) to build and maintain the DFC infrastructure network. There are two components to the project. The first component is design, construction and commissioning of the Khurja-Kanpur section: this component will construct 343 km of double track electrified railway capable of freight train operation with twenty five ton axle loads at 100 km/h; and the second component is institutional development to assist DFCCIL and Ministry of Railways (MOR) to develop their capabilities to best utilize heavy haul freight systems.

Vishnugad Pipalkoti Hydro Electric Project

Approval Date: 30 June, 2011 Commitment for Entire Project (amount in millions) Product Line IBRD Commitment IDA Commitment IBRD + IDA Commitment IBRD/IDA 648 0 648 Lending Instrument Grant Amount Total Project Cost Specific Investment Loan 0 922

The objectives of the Vishnugad Pipalkoti Hydro Electric Project are: a) to increase the supply of electricity to India's national grid through the addition of renewable, low-carbon energy; and b) strengthen the institutional capacity of the borrower with respect to the preparation and implementation of economically, environmentally and socially sustainable hydropower projects. There are two components to the project. The first component is construction of the 444 MW Project in Chamoli district, Uttarakhand, India; and the second component is support to capacitybuilding and institutional strengthening at THDC India Limited, the developer of the Project.

NHAI Technical Assistance Project

Approval Date: 30 Nov, 2010 Commitment for Entire Project (amount in millions) Product Line IBRD Commitment IDA Commitment IBRD + IDA Commitment IBRD/IDA 45 0 45 Lending Instrument Grant Amount Total Project Cost Specific Investment Loan 0 55

The project development objective of National Highways Authority of India (NHAI) is to assist to adopt the appropriate practices that would enhance its program management and operational efficiency. There are three components to the project. The first component of the project is program level technical support which includes preparation of a project preparation manual and improvement of environmental and social policies and procedures. The second component of the

project is institutional strengthening and capacity building which includes implementation of enterprise resource planning and preparation and implementation of a comprehensive exposure and training plan for NHAI staff including twining arrangements with agencies/institutions of repute abroad. And the third component of the project is technology and innovation which includes implementation of the Nandan Nilekani committee recommendations on Nation-wide tolling strategy and interoperability of toll collection systems and partnership and support to research and training institutions of the sector in India.

PMGSY Rural Roads Project

Approval Date: 20 Dec, 2010 Commitment for Entire Project (amount in millions) Product Line IBRD Commitment IDA Commitment IBRD + IDA Commitment IBRD/IDA 500 1000 1500 Lending Instrument Grant Amount Total Project Cost Specific Investment Loan 0 1500

The objective of the Pradhan Mantri Gram Sadak Yojana (PMGSY) Second Rural Roads Project for India is to achieve broader and more sustainable access to markets and social services by the rural population in participating districts. There are two components to the project. The first component of the project will support the effective implementation and maintenance of the PMGSY program in the participating states. Over the five-year project period, it is estimated that 8,200 habitations will be connected through the construction of 24,200 km of new all-weather access and upgrading of rural through and link routes. The second component of the project is institutional strengthening. This component designed to support the institutional strengthening, organizational effectiveness and individual skills development to complement achievement of the Disbursement Linked Indicators (DLI) matrix and the program outcomes defined above. The second component also includes the five sub components, named as: research and development,

independent means of verification, state level project institutional support, equipment, and training for skills development.

Dam Rehabilitation and Improvement Project

Approval Date: 29 Jun, 2010 Commitment for Entire Project (amount in millions) Product Line IBRD Commitment IDA Commitment IBRD + IDA Commitment IBRD/IDA 175 175 350 Lending Instrument Grant Amount Total Project Cost Specific Investment Loan 0 437.5

The objective of the Dam Rehabilitation and Improvement Project for India is to improve the safety and operational performance of selected existing dams in the territory of the participating states. The project development objective (PDO) will be achieved through rehabilitation and improvement of dams and improvement in central and state-level institutional capacity to sustainably manage dam safety administration and operation and maintenance. In order to guarantee that the project objective and scope can be achieved, the closing date extension will ensure that the project has a sufficiently long implementation period to complete the rehabilitation and modernization works on the 223 dams and to carry out the necessary capacity building of staff of the Central Water Commission (CWC) and the Water Resources Departments (WRD) in the four participating states. The development of capacity will not only benefit the project dams but will ensure better management, operation, and maintenance of all the dams in the four stats. A workshop was conducted on December 7, 2011, with participation of management and senior staff of CWC and all four WRDs. The workshop validated that the project objective, scope, and implementation arrangements are all still very important and relevant and all implementing agencies are ready to start project implementation immediately after effectiveness of the project. This will be the first extension of the project.

Mumbai Urban Transport Project-2A

Approval Date: 29 June, 2010

Commitment for Entire Project (amount in millions) Product Line IBRD Commitment IDA Commitment IBRD + IDA Commitment IBRD/IDA 430 0 430 Lending Instrument Grant Amount Total Project Cost Specific Investment Loan 0 970.5

The objective of the Second Phase (A) of the Mumbai Urban Transport Project (MUTP-2) for India is to improve the passenger carrying capacity, operational efficiency, level of comfort of, and the institutional capacity of entities involved in, the suburban rail system of Mumbai Metropolitan area. There are four components to the project, the first component being Electric Multiple Unit (EMU) rolling stock fleet increase. Under the project 864 additional EMU cars will be procured. This will increase the total fleet to around 3,124 cars. The Bank loan will finance the electrical equipment for the new cars, to be manufactured at Chennai Integral Coach Factory (ICF), while counterpart funds will cover the remaining costs of production. The second component is the conversion of power supply from direct current to alternating current (including Improvements to signals and telecoms). Three sections of the Mumbai Metropolitan Region (MMR) Central Railway network will be converted from 1,500V DC traction to 25KV AC. This activity comprises: (i) modifying overhead catenaries, (ii) installing power sub-stations, along with switching stations (iii) procuring catenary maintenance equipment; and (iv) modifying signal and telecom systems. The third component is the EMU maintenance facilities and stabling lines. New stabling lines will be built to accommodate the additional trains supplied under the project. The existing EMU maintenance depot at Kurla on the Central Railway and the maintenance shed at Virar built under MUTP-1 will accommodate the new stabling lines. No new car maintenance shed or overhaul workshop is planned under MUTP-2A. In total, 73 new stabling lines will be built: 34 (including four extensions from 9-car to 12-car) on the Western Railway and 39 on the Central Railway. They will be fully funded by the government. Finally, the fourth component is the capacity strengthening and technical assistance.

India - Capacity Building for Industrial Pollution Management

Approval Date: 3 June, 2010

Commitment for Entire Project (amount in millions) Product Line IBRD Commitment IDA Commitment IBRD + IDA Commitment IBRD/IDA 25.21 38.94 64.15 Lending Instrument Grant Amount Total Project Cost Specific Investment Loan 0 75.39

The objective of the Capacity Building for Industrial Pollution Management Project for India is: (i) to build tangible human and technical capacity in selected state agencies for undertaking environmentally sound remediation of polluted sites; and (ii) to support the development of a policy, institutional and methodological framework for the establishment of a National Program for Rehabilitation of Polluted Sites (NPRPS). There are three components to the project. The first component of the project is strengthening of environmental institutions: building capacity for addressing pollution remediation. The objective of this component is to strengthen the institutional framework, including regulatory policies, management practices, and performance guidelines, for central and state agencies, supporting the remediation of polluted sites. While India has extensive environmental management systems and environmental laws in many areas, the existing institutional framework for addressing orphan hazardous waste sites and illegal dumps has been limited in its scope and effectiveness to support large scale mitigation and preventing environmental degradation caused by contaminated and abandoned sites. The second component of the project is investments in priority remediation and environmental improvements: rehabilitation of orphan hazardous waste sites and municipal dumpsites. The objectives of this component is to pilot site remediation which will minimize the environment and health risks by containing the migration of the heavy metals and chemicals from contaminated soil and groundwater to acceptable and safe levels. Typically, in most polluted sites the generation and discharge of industrial waste; domestic discharge of sewer water, as well as discharge of toxic chemicals from abandoned industrial facilities and municipal dumpsites have contributed directly or indirectly to the overall degradation of environmental quality of soil, surface and groundwater in the area. This component will develop risk-based technical solutions to implement measures for intercepting, containing or treating as well as monitoring the environment and health impacts in the project area and prevent further migration of unacceptable

contamination levels to sensitive areas and groundwater users. The third component of the project is project management. The project governance structure is designed to ensure effectiveness and transparency of implementation and compliance with Bank fiduciary requirements.

Conclusion
The primary assessment of IBRD & its help to India provide us with the fact that India is around 4th largest beneficiary of IBRD loans. IBRD has contributed a lot to Indias development in various sectors like Railways, Power, Fertilizer and Telecommunication sector, transportation etc.It helped in maintaining rapid & inclusive growth by developing infrastructure, skills & agriculture sector. It also developed various strategies for different states in India to maintain sustainable development. Nearly 51% of the total Bank lending to India is by IBRD loans. This includes various urban developmental projects like Nathpa Jhakri Project, National Dairy Project and Upper Krishna Irrigation. IBRD funds are semi-concessional and are of longer maturity and therefore, cheaper than commercial external borrowings. Government of India utilizes IBRD loans primarily for infrastructure and urban development projects. Hence on the above note we can conclude that IBRD facilitates Indias development, maintain rapid & inclusive growth by its unavoidable poverty reduction program and urban development projects.