Announcement of India Industrial Pollution Control Project on June 3, 1991

FOR IMMEDIATE RELEASE 'Vorld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 NEWS RELEASE NO. 91/103 Contact: Pastor B. Sison IDA NEWS RELEASE NO. 91/115 Tel: (202) 458-0344 INDIA: INDUSTRIAL POLLUTION CONTROL PROJECT The following is information on a project approved by the World Bank's Board. DATE: June 3, 1991 WORLD BANK GROUP SUPPORT: World Bank loan: $124 million; International Development Association (IDA) credit: SDR 23.4 million ($31.6 million). The World Bank loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.73 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. The IDA credit is for 35 years, including 10 years grace; it carries no interest but has an annual charge of 0.75 percent on the disbursed balance and a variable charge of up to 0.5 percent (currently zero percent) on the undisbursed balance. "AL COST: $260 million OTHER FINANCING: Government of India, $17.4 million; Financial institutions, $25 million; Project sponsors, $62 million IMPLEMENTING AGENCY: Ministry of Environment and Forests ESTIMATED COMPLETION DATE: 1998 PROJECT DESCRIPTION: The objectives of the Industrial Pollution Control Project are to: (a) promote effective and timely enforcement of existing legislation on environmental protection relating to industrial operations; (b) support industrial efforts to comply with existing environmental regulations, including a special effort to reach small-scale industry through common treatment facilities; and (c) support assessments, extension services, and research in industrial waste minimization, resource recovery, and pollution abatement. The project will focus on chemical and related industries, including fertilizers, leather tanning, dyes, pesticides and insecticides, pharmaceuticals, petrochemicals, pulp and paper, and sugar and distilleries, all identified as a major source of industrial pollution. Efforts to monitor, control, and alleviate industrial pollution will concentrate on the states of Gujurat, Maharashtra, Tamil Nadu, and Uttar Pradesh. The project includes: (a) an institutional component designed to strengthen the Central and State Pollution Control Boards in the four selected states; (b) an investment component designed to support efforts by lustry to comply with regulations, including support to set up common ,eatment facilities at industrial estates for the disposal of solid and liquid waste; and (c) a technical assistance component designed to assist the Ministry of Environment and Forestry and the development finance institutions to channel specialized technical assistance for the evaluation of environmental problems and the assessment of their solutions.