India - Industrial Technology Development Project

Document of The World Bank FOR OFFICIAL USE ONLY Repot No. P-5095-IN MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERMATIONAL BANK FOR RECONSTRUCTION ANM DEVELOPMENT AND THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO INDIA IN AN AMOUNT EQUIVALENT TO US$145 MILLION AND A PROPOSED CREDIT OF SDR 44.2 KILLION FOR AN INDUSTRIAL TECHNOLOGY DEVELOPMENT PROJECT AUGUST 15, 1989 This document has a restricted distribution and may be used by recipients only in the performance of their ofricial duties. Its contents may not otherwise be disclosed without World Bank authorization.  Rs 1 - US$o.067 Rs 15 - US$1.00 ZRINCIPAL ABBREVIATIONS AND ACRONYMS APIDC Andhra Pradesh Industrial Development Corporation BIS Bureau of Indian Standards CanBank Canara Bank CanFin CanBank Financial Services Ltd. CSIR Council for Scientific and Industrial Research GIIC Gujarat Industrial Investment Corporation GOI Government of India ICICI The Industrial Credit and Investment Corporation of India IDBI Industrial Development Bank of India ITD Industrial Technology Development RI Research institutes R&D Research and development TI Technology institutes TDF Technical Development Fund TDICI Technology Development and Information Company of India Ltd. VC Venture capital VCF Venture capital fund VCC Venture capital company VCM Venture capital managing entity FISCAL YEAR April 1-March 31  FOR OmCIAL USE ONLY INDI INDUSTRIAL TECHNOLOGY DEVELOPMENT PROJECT Loan. Credie and Project Summary Borrower: India, acting by its President Beneficiaries: Industrial Credit and Investment Corporation of India (ICICI) Canara Bank (CanBank) Andhra Pradesh Industrial Development Corporation (APIDC) Gujarat Industrial Investment Corporation (GIIC) Council for Scientific and Industrial Resetrch (CSIR) Bureau of Indian Standards (BIS) Amount: US$200 million comprising: (a) an IBRD loan for US$145 million equivalent; and (b) an IDA credit for SDR 44.2 million (US$55 million equivalent). Terms: US$100 million of the IBRD loan for the Technical Development Fund would be made at the Bank's standard variable interest rate and be repaid over 20 years including 5 years of grace and the balance of the US$45 million for the venture financing component would be repaid over 16 years including 7 years of grace. The IDA credit for the technology services component would be on standard terms with 35 years maturity. Relendina Terms: Venture Financing Component. US$45 million of the Loan would be on-lent in rupees at a rate of 12% p.a., repayable over 16 years including 7 years of grace, with interest capitalized during the grace period. The Government would bear the foreign exchange and interest rate risks. Technology Services Component. ICICI would serve as the managing agent on behalf of the Government for the US$55 million component. US$40 million of the IDA credit would be on-lent in rupees to research and standards institutions with no interest charge but with a service fee consisting of 1% and a commitment charge of 0.25% p.a.. The repayment terms would be for a maximum of 15 years with 4 years of grace. The balance of US$15 million of the Credit would be on-lent in rupees as conditional loans for carrying out R&D. The conditional loans would have a maximum term of 12 years with an interest rate of 6% p.a. during the grace period, and thereafter would be repaid at an interest This document has a restricted distribution and may be used by r cipierats ' nly in the performance of their official duties. Its contents may not otherwise be disclosed withou World Bank authorization.  - Li * rate of 14% p.a. and/or royalties; however, subloans to unsuccessful projects would be written off. The terms would depend on the likely period for commercialization of the R&D results. ICICI would also receive 2% p.a. from the interest charges and 100 of royalties accruing to the fund to cover the costs of appraisal and management. Ftnansins Plan USU million Government of India 50.0 Financial Institutions and Investors 90.0 Project Sponsors 67.5 Government of Japan 2.5 IP-.D 145.0 IDA 55.0 Total 410.0 Economic Rate of Return: Not applicable. Staff AmDraisal Regort: Report No. 7864-IN IBRD 21651  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTEANATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN AND CREDIT TO INDIA FOR AN INDUSTRIAL TECHNOLOGY DEVE.LOPMENT PROJECT 1. The following memorandum and recommendation on a proposed Bank loan of US$145 million and development credit of SDR 44.2 million (US$55 million equivalent) is submitted for approval. US$100 million of the loan for the Technical Development Fund would be for 20 years, including 5 years of grace, and the balance of US$45 million for the venture capital component would be for 16 years, including 7 years of grace, at the Bank's standard variable interest rate. The proposed credit for the technology services component would be on standard IDA terms with 35 years maturity. The proposed loan and credit would help finance an industrial technology development project. The project is expected to be co-financed by a grant from the Government of Japan of US$2.5 million equivalent. 2. Back round. Recent liberalization of the industrial regulatory framework is promoting competition and stimulating industrial growth and technological change. The results have been impressive with 9% p.a. growth in industrial output since 1985 and more than 25% p.a. growth in real terms in manufactured exports over the past 2 years. After two decades of stagnation, total factor productivity of manufacturing industry increased between 1981 and 1987 by 4.2% p.a., indicating that firms are already responding to the more competitive environment by boosting their productivity. To survive and grow, firms now need to improve productivity and product quality further and therefore are demanding improved technology and increasing investment in R&D. 3. Previous policies and institutional development efforts for industrial technology development (ITD) have focused on technological self- reliance and government financing and carrying out of R&D on behalf of industry. The Government is now evolving an ITD strategy which emphasizes: increased development and commercialization of technology relative to basic research; more participation in, and financing of, R&D by industry rather than the Government; and a greater reliance on technology imports and thereby channeling domestic resources more efficiently to complement, rather than substitute for, technology that can be obtained from abroad. The greater openness to foreign technology is evident, inter alia, from the encouragement of foreign investment, which has grown 12-fold in dollar terms in 10 years, and the easier access to technology imports, as evidenced by the number of technology collaborations approved each year in the late 1980s, which have tripled compared to 10 years earlier. The emphasis on transferring greater responsibility to industry for domestic ITD is demonstrated by the increased participation of industry on the boards of public sector research institutes (RIs); limits on budgetary support to RIs coupled with incentives for them to seek industrial contracts; and Government efforts to promote venture capital to support new technology ventures in the private sector.  - 2 - 4. Rationale for Bank Involvement. Since some of the major elements of a technology strategy are still being formulated and others remain to be implemented, Bank participation at this stage can have a major impact on the long-term orientation of technology strategy toward supporting a more competitive industrial environment. Previous Bank studies of various industrial subsectors and the regulatory environment, culminating in the report on Policies for Industrial Technology Development (No. 6715-IN, May 11, 1987), as well as subsequent dialogue on issues and policies related to ITD have provided input for the Government's technology policies. Bank involvement in project preparation has already had an impact on the plans and strategies of selected research and stqndards institutes and, with support from the IFC, on the institutional strl!cture for venture capital. The Bank would continue to monitor and advise on the policy and institutional aspects of venture cspital development, the evolution of more service oriented technology institutions and increasing access of enterprises to foreign technology. More broadly, Bank participation in industrial technology development complements other Bank efforts to promote increased industrial competition and modernization, improve competitiveness of key industrial subsectors and train technical manpower for industry. 5. Prolect Objectives. The overall objectives of the project are to facilitate the acquisition and development of technology by industrial firms in India, and to promote within industry a balanced recourse to existing domestic technological capability and to increased and easier import of foreign technology. Specifically, the project would aim to: (a) help build the appropriate regulatory and institutional framework for venture capital in India; (b) support increased collaboration between industry and selected technology service institutions and improve the latter's capability to support technological development in industry; and (c) provide industry with easier and greater access to foreign technology. 6. Proiect Descrigtion. The project consists of the following three components: (a) Technologv Venture Financing. This component would support with US45 million of loan proceeds 4 venture capital schemes set up to finance and assist ventures for developing and commercializing innovative products and processes which involve high risk and are not appropriate for normal institutional financing. Each scheme would involve the establishment of venture capital trust funds (VCFs) to be managed by a specialized unit or a separate venture capital management entity (VCM).1/ The proceeds of the VCFs would be invested principally in innovative technology ventures through various equity and quasi-equity instruments (e.g., conditional 1/ Technology Development and Information Corporation of India (TDICI, an affiliate of ICICI), Canara Bank Financial Services Ltd. (CanFina), Gujarat Industrial Investment Corporation (GIIC) and APIDC Venture Capital Ltd., a subsidiary of Andhra Pradesh Industrial Development Corporation (APIDC).  loans, income notes), convertible debentures and loans. Each VCF would consist of resources invested by the parent company, and other investors in some cases. The Loan proceeds would be invested by the parert company in the VCF and constitute one third of each VCF's resources. Technical assistance for the four venture capital entities to the extent of US$500,000 equivalent is expected to be financed as a grant by tl-" Government of Japan. (b) Technolo&v Services. This component would be supported with an IDA credit. Twelve to 15 technology institutions (TIs) would receive loans (interest-free, but with a service fee) totalling US$40 million for equipment, facilities, training and technology collaboration for R&D programs which directly support industry. Each program would form an integral part of an overall institutional plan of the TI that provides for increased revenue generation from its industrial clients and a clearer definition of its role, in particular vis-a-vis industry. The first six, the Bureau of Indian Standards and five research institutes (RIs), have been appraised. A technology group in ICICI would b-? responsible for appraising the remaining institutions and supervising all TIs. It would also manage a US$15 miilion *ilot Sponsored R&D Promotion Fund created under the project to stimulate industry's demand for R&D carried out with or by the TIs or universities. This fund would finance loans to industry to cover up to one half of the costs of R&D projects; the other half would be borne by industrial firms. Technical assistance and training for institutional improvements of the Council for Scientific and Industrial Research (CSIR), the Bureau of Indian Standards (BIS) and ICICI, and studies on the policy and institutional environment for ITD would be supported by the grant from the Government of Japan. (c) Technical Development Fund (TDF) is a mechanism for facilLtating technology imports by industrial firms, providing them all approvals promptly, as well as foreign exchange allocations for the firms' puirchases of technology. The Bank would support incremental technology imports through the TDF with the third project component of US$100 million, which would cover one third of TDF's total estimated foreign exchange requirements through the end of the 1990/91 fiscal year. Recent modifications of TDF procedures have removed key constraints to technology imports under the scheme and provide now for a wide range of imports for technology upgrading through a fast track procedure. This liberalization of the TDF is expected to result in rapid growth of demand for TDF imports. The total cost of the project is estimated at US$410 million with a foreign exchange component of US$291 million (71%). A breakdown of project costs and the financing plan are shown in Schedule A. Amounts and methods of disbursements, and the disbursement schedule, are shown in Schedule B. A timetable of key project processing events and the status of Bank Group operations in India are given in Schedules C and D, respectively. A map is also attached. The Staff Appraisal Report No. 7864-IN dated August 15, 1989, is being distributed concurrently.  - 4 - 7. Agreed Actions. The Government has agreed to: (a) enter into, Subsidiary Loan Agreements with ICICI and the Industrial Development Bank of India (IDBI, see para. 8 below), which stipulate, inter alia, the amounts and relending terms for Bank financing of venture capital (16 years with 7 years of grace, during which the interest of 12S p.a. would be capitalized), and the criteria and guidelines for the management by ICICI of the IDA credit for technology services; (b) ensure that the four VCMs can carry out their VC activities, effectively and efficiently and, in particular, have the freedom to invest the proceeds of the VCFs, using various equity, quasi-equity and loan instruments, without seeking government approval, and di-est their shares at prices that they determine; (c) ensure that access by firms to the TDF scheme would not be reduced; and (d) establish a mechanism satisfactory to the Bank by March 31, 1990, for centralizing documentation on TDF imports. 8. Regarding technology venture financing, IDBI would enter into Financial Agreements acceptable to the Bank with CanBank, APIDC and GIIC which define the terms and conditions under which loan proceeds are to be used. ICICI, CanBank, APIDC and GIIC would agree to ensure that (a) each VCF management entity (i) operates to promote ctart-up and growth-oriented technology companies and maximize returns to the VCFs, and (ii) employs staff of adequate experienoe and background; (b) articles of association/incorporation, t,ust deeds, and operating guidelines of the VCF and managing entity are not chenged substantially without approval of the Bank; and (c) subprojects are submitted to the Bank for prior approval as required under the terms of the loan. 91. ICICI has also agreed to: (a) on-lend the proceeds of the IDA credit to TIs and for sponsored R&D according to agreed criteria; (b) on- lend funds to TIs with a service fee of 1% p.a. and a maximum term of 15 years with 4 years of grace and a commitment charge of 0.25% p.a.; (c) ensure that TIs set up cost accounting systems and comply substantially with institutional goals for 1989/90 and with laboratory safaty requirements before disbursing funds to them; (d) on-lend funds for industry-sponsored R&D for up to 12 years at 6% p.a. during the grace period and A 14% p.a. interest and/or a royalty payment thereafter, unless the subproject is proven to be unsuccessful, in which case it would be written off; and (e) establish a formal review procedure for subprojects and maintain an adequate staff. 10. Conditions of effectiveness are the signing of Subsidiary Agreements as noted in para. 7 (a) above and of a Financial Agreement betweer IDBI and Canara Bank, all acceptable to the Bank. The signing of IDBI-APIDC and IDBI-GIIC Financial Agreements would be conditions of disbursement for APIDC and GIIC, respectively. 11. Benefits. The proposed project would support a comprehensive and integrated approach to developing technology in Indian industry. It would help firms obtain the technological inputs from abroad, while providing for more appropriate development of domestic technclogies based on the needs of industry. Institutionally, the project would contribute to the development  of: (a) TIs whose activities are increasingly financed by industry and determined by industrial demand; (b) profitable VCFs financing a wide range of growth-oriented firms using advanced technologies; and (c) key government agencies supervising policies and institutions which promote ITD by industry. The proposed project is expected to contribute directly to more rapid technological upgrading in about 1,000-1,200 industrial firms. It would also stimulate rationalization and consolidation of policies and procedures associated with technology acquisition, capital markets and venture capital, and the operation and funding of the research institutes. The project would also have a significant impact on laboratory safety in the entire CSIR network and support a number of research activities related to environmental protection and improvement. 1.9. Risks. An innovative project like tk'.s one is inherently risky with respect to implementation and repayment by the final beneficiaries. The project, however, is structured to minimize the risks. The TDF already functions expeditiously. An effective system for managing the technology services component is being developed by ICICI which will be compensated for its services. Appraisal of the first six institutes indicated that they can be transformed to ITD institutions serving effectively industrial needs. Each venture capital scheme has been thoroughly appraised and organizational arrangements have been modified so that they can operate effectively and profitably. Two VCMs have had positive experience with share inves:"ents and divestiture, and a third which has already initiated VCF operation has revealed a large demand and a capability to appraise prospective ventures effectively. This component will be supervised closely (as will the :roject as a whole). 12. Recommendation. I am satisfied that the proposed loan and credit comply with the Articles of Agreement of the Bank and of the association and recommend that the Executive Directors approve the proposed loan and credit. Barber B. Conable President Attachments Washington, D.C. August 15, 1989  -6 SCHEDULE A INDUSTRIAL TECHNOLOGY DEVELOPMEnT PROJECT Estimated Costs: locl Foreign Total ---- (USM Million) ------ Technology Venture Financing 70 100 170 Technology Support Services 49 41 90 Technical Development Fund 4a 150 150 Total Costs 119 121 40 Financinf Plan Government of India 50 50 Financial Institutions and Investors 35 55 90 Project Sponsors 63 4.5 67.5 Government of Japan 1 1.5 2.5 IBRD - 145 145 IDA 20 35 55 Total Financing 119 in 410 La The cost of this component is based on a conservative estimate of the projected incremental demand for technology imports under the TDF. The Bank loan would support easier and larger imports of technology for an amount of US$100 million, and the Government would fund from its own resources the balanice of the projected incremental foreign exchange requirements. In order to simplify disbursement procedures, Bank funds for this component would be disbursed for one third of total actual foreign exchange outlays for eligible technology imports under the TDF.  7- SCHEDULE B INDI INDUSTRIAL TECHNOLOGY DEVELOPMENT PROJECT Disburements Amount of Amount of % of the Credit the Loan expendi- allocated allocated tures (SDR (dollar to be eguivalent) egluivalent) financet 1. VCF by ICICI 20,000,000 100 2. VCF through IDBI 13,500,000 100 3. Unallocated for VCF 11,500,000 4. Subloans to technology support services 44,200,000 100 5. Equipment and services under Technical Devel- opment Fund (foreign 100,000,000 33 expenditures) Total 44.2Q.Q000 145.000.000 Estimated Disbursements Bank Fiscal Year 90 91 92 93 94 95 96 Annual 20 37 50 61 23 6 3 Cumulative 20 57 107 168 191 197 200  -8 IND2SRIAL TECHNOLOG DEVELOEENT XLOJMCT Timetable of Lea Prolect Processinj Events (a) Time taken to prepare project: 1-1/2 years (b) Prepared by: Government, ICICI, other financial institutions, and technology institutes with World Bank assistance. (c) First Bank mission: November-December 1987 (d) Appraisal mission departure: March 1989 (e) Negotiations July 1989 (f) Planned date of effectiveness: December 20, 1989 (g) List of relevant PCRs and PPARs: None  9 TRE STATUS RE DMNK GROUP OPIRATIOS -IN XNDIA A. STATSEOMN 0P BANK OANSM AnD I2A =RnDI (As of March 31, 198'd) UU8 mllion tNe of cancp1lations, Loan or Fiscal CrediLt No. Year of zuunAZ IBAD ZPI It Obc1= a Anaroval 66 Loans/ 3,855.8 - 136 Credits fully disbursed - 8,976.1 - 963-IN 1980 Inland Fisheries - 20.0 0.65 ^/ 1003-IN 1980 Tamil Nadu Nutrition - 32.0 2.51 jJ 1011-IN 1980 GuJarat IrtLatilen IS - 175.0 23.45 Al 1027-IN 1980 SingraulL Thermal Ir - 300.0 7.16 1034-IN 1980 Karnataka Sericulture - 54.0 1.41 _1 1053-IN 1980 Farakka Thermal Power - 225.0 9.05 1887-IN 1980 Farakka Thermal Pover 23.0 - 25.00 1072-IN 1981 Bihar Rural Roasd - 35.0 0.26 ^t 1078-IZ 1981 Mahanadi Barrages - 83.0 1.65 It 1116-IZ 1981 Karnataka Tank Irrigation - 54.0 0.43 at 1125-IN 1981 Nazira FertliLer Project - 399.1 0.62 pI 1138-IN 1981 M.P. Agricultural Ext. ZZ - 37.0 3.?9 1172-IN 1982 Rorba Thermal Power Project 1I - 400.0 55.63 1177-IN 1982 Madeya Pradesh Major Irrlgation - 220.0 87.88 1178-IN 1982 West Bengal Soclal Forestry - 29.0 9.89 2076-IN 1982 Rasagundam thermal Pover II 300.0 - 78.29 1219-ZN 1982 Andhra Pradesh Agricultural Ext. - 6.0 1.96 it 2186-IN 1982 Kallada Irrigatlon 20.3 - 2.35 it 1280-ZN 1983 GuJarat Water Supply - 72.0 46.12 1286-IN 1983 Jamu/tKashmair and Haryana Social Forestry - 33.0 10.00 1288-IN 1983 Chambal Madhya Pradesh Irrigation II - 31.0 4.64 1289-IN 1983 Subernarekha Irrigation - 127.0 8.43 2205-IN 1983 Krishna-Godavari Exploration 165.5 - 9.34 At 2210-IN 1983 Railways Wodernization & Maintenance II 200.0 - 79.82 2241-IN 1983 South Bassein Gas Developmeat 139.3 4.36 at 1319-IN 1983 Haryana Irrigation II - 150.0 52.88 1332-IN 1983 U.P. Public Tubevells II - 101.0 33.33 1356-IN 1983 Upper Indravati Hydro Power - 170.0 78.15 2278-IN 1983 Upper Indravati Hydro Power 156.4 - 156.01 1369-IN 1983 Calcutta Urban Development III - 147.0 100.50 2283-IN 1983 Central Power Transmission 250.7 - 217.86 2295-IN 1983 Himalayan Watershed Management 46.2 - 34.82 1383-IN 1983 Maharashtra Water Utilization - 32.0 10.37 2308-IN 1983 Maharashtra Water Utilization 22.7 - 22.64 2329-IN 1983 Madhya Pradesh Urban 24.1 - 13.89 1424-IN 1984 Rainfed Areas Watershed Dev. - 31.0 33.04 A/ Final disbursements being processed.  - 10 - SNDL =^l2 OF 5 1426-1N 1984 Populatlon III - 70.0 49.02 1432-ZN 1984 Karnataka Soclal Forestry - 27.0 13.79 2387-IN 1984 Nhava Sheva Port 250.0 78.42 2393-IN 1984 Dudhlchus Coal 151.0 - 97.83 2403-IN 1984 Cambay Basin Petroleum 213.5 - 120.50 2415-IN 1984 Madhya Pradesh Fertllter 203.6 - 97 1454-IN 1984 Tamil Nadu Water Supply - 36.5 .73 SF-12-IN 1984 Tamil Nadu Water Supply - 36.5 45.60 1468-IN 1984 Perlyar Valgal II Irrigation - 17.5 1.15 SF-16-IN 1984 Perlyar Valgal II Irrigation - 17.5 14.69 1483-IN 1984 Upper Ganga Irrigation - 125.0 117.17 1496-1N 1984 Gujarat Medium Irrigation - 172.0 120.28 2416-IN 1984 InZdra Sarovar 8ydroelectric 17.4 - 12.50 SF-20-IN 1984 Indira Sarovar Hydroelectric - 13.8 16.15 2417-IN 1984 Rallways Electrification 280.7 - 162.63 2442-IN 1984 Farakka II Thermal Power 300.8 - 251.53 2452-IN 1984 Fourth Trombay Theoml Power 135.4 - 38.94 1502-IN 1984 National Cooperative Development Corporation III - 220.0 188.71 1514-IN 1985 Kerala Social Forestry - 31.8 24.15 1523-ZN 1985 National Agrlc. Extension I - 39.1 43.07 1544-IN 1985 Bombay Urban Development - 138.0 132.74 2497-IN 1985 Narmada (Gujarat) Dam and Power 200.0 - 200.00 1552-IN 1985 Narmada (Gujarat) Dam and Powet - 100.0 93.30 1553-IN 1985 Narmada (Gujarat) Canal - 150.0 166.16 1569-IN 1985 Second Natlinal Agricultural Ext. - 49.0 43.14 1611-IN 1985 National Social Forestry - 165.0 140.12 1613-IN 1985 Indlra Sarovar Hydroelectric - 13.2 16.02 2498-IN 1985 Jharia Coking Coal 248.0 - 207.67 2505-IN 1985 Naharashtra Petrochemical 300.0 - 76.57 2534-IN 1985 Second National Highway 200.0 - 162.08 2544-IN 1985 Chandrapur Thermal Pover 300.0 - 206.01 2555-IN 1985 Rlhan4 Power TransmissLon 250.0 - 124.08 2582-lN 1985 Kerala Power 176.0 - 160.14 1619-ZN 1986 West Bengal Minor Irrigatlon - 9.o 123.24 1621-IN 1986 Maharashtra Composlte Irrlgatlon - 160.0 195.86 1622-IN 1986 Kerala Water Supply and Sanitation - 41.0 44.57 1623-IN 1986 West Bengal Population - 51.0 53.71 16.1-IN 1986 National Agricultural Research ZI - 72.1 75.25 2629-IN 1986 Industrial Export Dev. Flnance 90.0 - 71.67 2630-IN 1986 ICICI-Indus. Rip. Dev. Finance 160.0 - 107.06 1643-IN 1986 Gujarat Urban - 62.0 70.15 2653-IN 1986 NABARD Z 375.0 - 60.53 2660-ZN 1986 Cement Iadustry 165.0 - 110.60 2661-IN 1986 ICICI - Cement Industry 35.0 - 25.97 1665-IN 1986 Andhra Pradesh IZ Irrigation - 140.0 164.69 2662-IN 1986 Andhra Pradesh ZZ Irrlgatlen 131.0 - 131.00 2674-IN 1986 Combined Cycle Power 485.0 - 219.17 2729-IN 1986 Cooperative Fertilller 150.2 - 6.95 2730-ZN 1986 Cooperative Fertillser 152.0 - 68.73 1737-IN 1987 Blhar Tubevells - 68.0 69.64 2769-IN 1987 Bombay Water Supply & Sewerage III 40.0 - 40.00 1750-IN 1987 Bombay Water Supply & Sewerage III - 145.0 118.96  - 11-~6HDU 1754-ZN 1987 National Agrie. Brunasion II I 85.0 87.70 1757-SN 1987 Oujamat Rural oasea - 119.6 121.42 1770-SN 1987 National Vater )Inagsmmnt * 114.0 112.40 2785-ZN 1987 O1 Ind"a Pettaloe 140.0 - 127.15 2796-SN 1987 Cool Mining 9 Quality RaprOvameat a40.0 - 193.13 2813-IN 1987 Telecommunioations SX 345.0 - 282.76 2797-ZN 1987 Uttar Pradesh Urban Development 20.0 - .0.00 1780-2N 1987 Uttar Pradea Urban Devolopment - 130.0 122.26 2827-SN 1987 Xarnaska Pov.r 330.0 - 314.48 2844-2N 1987 National Capltal Pover 485.0 - 421.50 2845-2N 1987 Talcher Tbhamal 375.0 - 350.03 2846-IN 1987 Madrae Vater Supply 53.0 - 53.00 1822-IN 1987 Madras Water Supply - 16.0 9.08 2893-IN 1988 National Dairy 22 200.0 * 200.00 1859-SN 1988 National Dairy y - 160.0 104.36 2904-IN 1988 Westemn a"e Developesnt 283.3 - 235.62 2928-IN 1988 Indus. Fin. & Tech. Aset. 310.0 - 270.03 2928-ZN 1988 S82 - 2nd. FLn. & Tech. Asst. 50.0 - 49.94 2929-ZN 1988 DousnRn Dow. Finance Corp. 250.0 - 166.12 2935-IN 1988 Railwaya Modern. 112 390.0 - 300.00 2938-IN 1988 ml nataka Pover it 260.0 - 240.00 2957-IN 1988 Uttar Pradesh Power 350.0 - 324.70 1923-IN 1988 Tamil Nadu Urban Dev. - 300.2 257.67 1931-ZN 1988J Bombay & Nadr n Populatlon - 57.0 50.16 2994-IN 1989 States Roade 170.0 - 170.00 1959-IN 1989 States Roads - 80.0 62.41 3024-IN 1989 Nathpa Jhesri Pover* 485.0 - 485.00 1952-IN 1989 National Seeds III* - 150.0 140.28 Total 15,051.8 15,411.0 of which has been repaid 2.094.8 457.8 Total now outstanding 12,957.0 14,953.2 Amount Sold 131.8 of which has been repaid 135.8 - - Total now held by Bank and IDA Sl 12,957.0 14,953.2 Total undisbursed (excludLng *) 7,217.2 3,678.5 }I IDA Credit amounts for SD?-denominated Credlts are expressed In terms of their US dollar equivalents, as established at the time of Credlt negotiations and as subsequently pres- t#4 to the Board. 2I Undisbursed amounts for SDR-denaminated IDA Credits are derived from cumulative disbursements converted to their US dollar equivalents at the SDR/US dollar exchange rate in effect on March 31, 1989, while original princLpal ls based on the exchange rate in effect at negotLations. This accounts for the fact that in some cases, the undisbursed balanoe as shown In US8 equivalent is higher than the origlnal principal. 3/ Prior to exchange adjustment. * Not yet effective,  - 12 - SCHUL8 D PAGE 4 OF 5 S. SThTEND OF IFC DvsmKuM (As of Warch 31, 1989) Fiscal Amount Xiia Conval WM 1cit Tot 1959 Republie Forge Company Ltd. I.S - 1.5 1959 KArloskar Oil Engines Ltd. 0.8 - 0.8 1960 Assam SillimanLte Ltd. 1.4 - 1.4 1961 f.S.B. Pumps 'td. 0.2 - 0.2 1963-66 Precision Bearlngs India Ltd. 0.6 0.4 1.0 1964 Fort Gloster Industries Ltd. 0.6 0.4 1.2 1964-75-79 Mahindra Ugine Steel Co. Ltd. 11.8 1.3 13.1 1964 LaksbmL Mbachbe Yorks Ltd. 1.0 0.3 1.3 1967 Jayihree Chemicals Ltd. 1.1 0.1 1.2 1967 Iadian Explosives Ltd. 8.6 2.9 11.5 1969-70 muarn Agro-ChemLeals Ltd. 15.2 3.8 19.0 1976-87 Escorts Limlted 15.6 - 15.6 1978 HouaLng Development Finance Corp. 4.0 1.6 5.6 1980 Deepak Fertiliser ent Petrochemicals Corporation Ltd. 7.5 4.2 11.7 1981 Coromandel FertilLsers Llmited 15.9 - 15.9 438l-86 Tata Iron and Steel Compwy Ltd. 51.7 - 51.7 1981 Mahindra. MahaLdra LLmited 15.0 - 15.0 19S1 Nagarjun- Coated Tubes Ltd. 1.5 0.3 1.8 1981-86187 Hagarjun. Signode Limited 2.3 0.3 2.6 1981 Nagarjuna Steels Limited 3.5 0.2 3.7 1982 Ashok Leyland Lilited 28.0 - 28.0 1982 The Bombay Dyeing and Manufacturing Co. Ltd. 18.8 - 18.8 i982 Bharat Forge Company Ltd. 15.9 - 15.9 1982 The Indian Rayon Corp. Ltd. 14.6 - 14.6 1984-86 The Owalior Rayon Sllk Manu- faecturing (weaving) Co. Ltd. 16.0 - 16.0 1985 Bibar Sponge 14.9 0.6 15.5 19S5 .jaj Auto Ltd. 23.9 - 23.9 19S5 Modi Cement 13.0 - 13.0 1985 India Lease Development Ltd. 5.0 0.3 5.3 1986 Larsen and Toubro Ltd. 21.8 - 21.8 1986 India Equipmont Leasing Ltd. 2.5 0.3 2.8 1986 Bajaj Tempo LLiLted 30.5 - 30.5 1986 The Great Eastern Shipping Company Ltd. 6.0 5.9 11.9 1987 Gujarat Narmada Valley Fertillzer 34.9 - 34.9 1987 Hero Honda Motors Ltd. 7.7 - 7.7 1987 WLico Limited 4.7 - 4.7 1987 Tltan Watches Llmlted 21.6 0.4 22.0 1987 Export-Import Bank of India 15.0 - 15.0 1987 Gujarat Fusion Glass Ltd. 7.5 1.7 9.2 1987 The Gujarat Rural Housing Finance Corp. - 0.2 0.2  -13- KuD5I 1987 Mtt Ko Lt. 7. - 27.6 1988 Zui 1.1 1. X989 I: - 0.2 0.2 1989 eItto - 0.2 0.2 1989 Goal&%t state fe llo"n 27.6 - 27.6 TOTAL 02088 SOOIUIS8 B2 MA u Le l, CaneellatLonaS Te stoa. Repaymnts ad 8as 217.4 9.8 227.2 Sew ReIld 210.1 16.9 227.0 Udstabursed 117.2 0.1 117.4 _m m mu  IBRD 21651 H/MAt IJi,tt.^'/Al 1 N D I A A4rLrt.%l INDUSTRIAL TECHNOLOGY r and arh DEVELOPMENT PROJECT PUNI/A Location of Participating Institutions PAKISTAN k S IR BISDelhi 4 f Z~~~~~~~~~~~~~' I')v Y,-; 4 BHUTAN 1A.S71 /I'%' Jaipur > /s)IX1S7i/J\A jalpr ,, Lucknow I _ _ / )