India - Assam Rural Infrastructure and Agricultural Services Project

Document of The World Banlk FOR OFFICLAL USE ONLY Report No. P-6589-IN MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 81.0 MILLION TO INDIA FOR ASSAM RURAL INFRASTRUCTURE AND AGRICULTURAL SERVICES PROJECT APRIL 26, 1995 This document has a restricted.distribution and may be used bv recipients only in the performance of their official duties. Its contents may not otheirwise be disclosed without World Banl; authorization.  CURRENCY EQUIVALENTS US$ 1 = Rupees (Rs) 31.4 Rupees (Rs) 1 = US$ 0.0318 (December 1994) FISCAL YEAR GOI, State - April 1 to March 31 WEIGHTS AND MEASURES The metric system is used throughout the report LIST OF ABBREVIATIONS AND ACRONYMS AAIDC Assam Agro-Industries Development Corporation ACTSE Assam Council for Technology, Science and Environment ADP Agricultural Development Project AEO Agricultural Extension Officer AHVD Animal Husbandry and Veterinary Department AI Artificial Insemination APC Agricultural Production Commissioner ASAU Assam State Agricultural University ASC Assam Seed Corporation ASEB Assam State Electricity Board ASP Agricultural Strategy Paper ASSCA Assam State Seed Certification Agency CAS Country Assistance Strategy CGWB Central Ground Water Board DOA Department of Agriculture DRDA District Rural Development Agency DTW Deep Tube Wells ERR Economic Rate of Return FFDA Fish Farmers Development Agency FMC Field Management Committee FSR Farming Systems Research FTS Field Trial Station GDP Gross Domestic Product GOA Government of Assam GOI Government of India GOTN Government of Tamil Nadu GPSS Gaon Panchayat Samabay Samathi HYV High Yielding Varieties ICAR Indian Council for Agricultural Research ICB International Competitive Bidding ICDP Intensive Cattle Development Project TD Irrigation Department IRDP Integrated Rural Development Project M Million M&E Monitoring and Evaluation MOA Ministry of Agriculture MOU Memorandum of Understanding MTR Mid-Term Review NAEP National Agricultural Extension Project NCB National Competitive Bidding NEC North East Council NGO Non Government Organization NPW Net Present Worth PCC Project Coordination Committee PD Project Director PGC Project Guidance Committee PIU Project Implementation Unit PM Policy Matrix PWD Public Works Department RGVN Rashtriya Grameen Vikas Nidhi RIASP Rural Infrastructure and Agricultural Services Project Rs Rupees SMS Subject Matter specialist SOE Statement of Expenditure STATFED Assam State Cooperative Marketing and Consumers' Federation Limited STW Shallow Tube Well T&V Training and Visit VLA Village Livestock Agencies VLEW Village Level Extension Worker WUA Water Users Association GLOSSARY KHARIF Monsoon season RABI Drier, winter season SALI Post winter season Beel Large body of water  FOR OFFICIAL USE ONLY ASSAM-RURAL INFRASTRUCTURE AND AGRICULTURAL SERVICES PROJECT CREDIT AND PROJECT SUMMARY Borrower: India, Acting by its President Executing Agency: Government of Assam (GOA) through the Departments of Agriculture, Public Works, Fisheries, Irrigation, Animal Husbandry and Veterinary, and Assam State Agricultural University. Amount: IDA Credit of SDR 81.0 million (US$126.0 million equivalent). Terms: Standard with 35 years maturity. On-lending Terms: Government of India (GOI) would make the proceeds of the credit available to GOA under its prevailing terms and conditions. GOI would assume the foreign exchange risk. Poverty Category: Program of Targeted Interventions. The project aims to benefit the poorest section of the rural population in the State of Assam by offering better income enhancement opportunities to poorer farmers, and particularly to women, and to improve their nutritional status. The project contains specific mechanisms for targeting these groups. The project also incorporates specific measures to ensure beneficiaries' participation in the selection of location and implementation of activities supported under the project. Total (US$ Million) Financing Plan: The State of Assam/ 20.6 Beneficiaries IDA (SDR 81.0 million) 126.0 Total 146.6 Economic Rate of Return: 241 Staff Appraisal Report: Report No. 13888-IN This document has a restricted distnbution and may be used by recipients only in the performance of their |of ficial duties. Its contents may not otherwise be disclosed without World Bank authorization.l  I~  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON THE PROPOSED CREDIT TO INDIA FOR ASSAM RURAL INFRASTRUCTURE AND AGRICULTURAL SERVICES PROJECT 1. The following memorandum and recommendation on the proposed Development Credit of SDR 81.0 million (US$ 126.0 million equivalent) to India is submitted for approval. The IDA credit would be on standard terms, with 35 years maturity, to help finance the Assam Rural Infrastructure and Agricultural Services Project. 2. Background. India is the world's second most populous country with a population exceeding 880 million, and growing at an average rate of 2.0% per year. In 1991 the Government of India (GOI) started to liberalize the country's economy with a reform program focused on the investment regime, trade policies, financial sector, public enterprises, and taxation. The economy has responded positively to the stabilization and reform measures implemented, but macroeconomic stress brought about by the reform program poses new challenges for policy. Growth recovered from 2% per year, in 1991/92 to around 4% per year in 1993/94. Details of the macroeconomic performance are described in the Bank Report "Recent Economic Developments and Prospects for India (Report No. 12940-IN)" of May 27, 1994. 3. Agricultural growth has averaged 2.6% per annum over the last two decades, slightly above the population growth rate of 2.1%. Despite comparatively modest growth, agriculture remains important to the Indian economy. Though agriculture's share of GDP is only about 35%, a large percentage of India's population is dependent on the sector. About 75% of India's people live in rural areas, and about 64% are directly employed in agriculture. 4. Though the performance of the agricultural sector has improved over the same period of the reform program (for example, through increased exports), there remain long-standing issues facing the development of agriculture in India. Without broad-ranging reforms, the prospects for accelerated, sustainable, and equitable growth are not encouraging. Some contributing factors for the inadequate performance of the agricultural sector, some of which were brought out in the Bank's recent public expenditure review, include excessive expenditures for subsidies on inputs and outputs, low levels of cost recovery for services provided by government, restrictions on both domestic and external trade, and the weak structure of the rural credit system. 5. Public expenditures on agriculture have been increasing at about 5% per year in real terms, with the recurrent component increasing at about 8% and the capital formation component declining by about 2%. These trends, evident at both the central and the state level, are unsustainable and have become worse over the past five years. The challenge for the future is to accelerate growth by improving the technical, financial, and economic efficiencies in the sector while paying greater attention to the equity aspects of development, the sustainability of the production base, and the preservation of the environment. 6. Although public expenditures have been instrumental in facilitating agricultural growth, Indian agriculture is at a critical stage. Gains in the agricultural sector have not been sufficiently large to alleviate poverty among the growing population. The challenge is to increase the growth rate of  -2- production to support population growth and raise living standards. This requires a critical reevaluation of the composition of public expenditure and the efficiency of allocation. 7. The incomplete liberalization of the trade regime, in particular for consumer goods, continues to discriminate against agriculture by depressing farmers' incentives to invest and produce. Within agriculture, government price controls, market interventions, and trade regulations restrict growth opportunities. 8. Although the broad economic environment is under the control of the central government, the constitution assigns responsibility for agriculture to the states. The central government finances about 40% of agricultural expenditure at the state level but does not influence the composition of the states' public expenditures. As a result of this shared responsibility, any reform process becomes difficult to implement. 9. Distortions in the incentive structure and management weakness not only reduce growth but also threaten its long-term sustainability. The two main issues are (a) over-exploitation and inefficient use of the natural resource base induced by pricing distortions, such as underpricing of water and power, and (b) poor operation and maintenance of irrigation and other infrastructure. Major land and water resources in India have been developed and utilized. Future growth must depend largely on intensified production (on both irrigated and rainfed land), crop diversification and increased efficiency. 10. The GOI's Agricultural Strateqy. The GOI's long-term strategy is to stimulate agricultural growth and promote rural development through improved water and land management, enhanced efficiency of irrigation and drainage networks, strengthened research services, increased attention to environmental protection, and improved rural infrastructure. Investment programs to address these elements and to reestablish growth are assigned a high priority in the Eighth Five-Year Plan (1992/97) of the GOI and state governments. The Plan also emphasizes equitable distribution of the benefits of growth and sustainability of the resource base. 11. According to the Plan, increasing public support for agriculture would focus on horticulture, livestock, fisheries, and sericulture. The plan aims at infusing new dynamism through redirecting public investments in infrastructural development and promoting private investment in the agricultural sector. The Plan gives priority to improving rainfed agriculture through diversification, creating incentives for exports, increasing the role of the private sector, enhancing the effectiveness of the safety net programs, and using natural resources in a sustainable manner. 12. The State of Assam. Assam, the largest of seven northeastern states, is among the poorest in the country. About 60% of the rural population have incomes below the official poverty line of Rs 7,800 (US$240) per household per year. The State covers an area of 78,000 sq km, of which 34,000 sq km (44%) are cultivable; the remainder is under forest or uncultivable. The State mainly comprises the valley of the Brahmaputra River, stretching from the Himalayan foothills in the northeast to its entry into Bangladesh in the southwest. There are three main regions: the flat, rice-dominated valley bottom; the foothill areas, which to the north and east are largely under tea cultivation; and the less prosperous, hilly tracts to the south bordering the states of Meghalaya and Nagaland.  -3- 13. The population of Assam is estimated at 22.3 million, with a growth rate of 3.6% per year, compared to 2.7% for all India. The most striking feature is the growing unemployment among educated youths, estimated at almost 60%. Even for those with steady incomes from employment, wages have been declining in real terms over the last 20 years. Minimum wages in Assam average Rs 15 per day compared with Rs 23 to 25 per day in other states such as Haryana, Punjab, and Manipur. 14. Agriculture in Assam: Constraints and Potential. Rainfall in Assam averages over 2,000 mm per year, permitting double-cropping in many areas. The state suffers from frequent floods, soil erosion, and low cropping intensity. Surface and groundwater resources are abundant but have not been exploited fully. Despite good water resources, the average yield of rice, the dominant crop, is only 1,150 kg per hectare, well below the national average of 1,500 kg per ha. Where irrigation facilities exist, higher yields can and are being obtained from the dry season rice crop. There is considerable potential for agricultural growth by increasing cropping intensity, raising rice yields, and diversifying into higher-value activities such as horticulture, fisheries, and dairy production. 15. Issues affecting agricultural growth in the state include: (a) poorly developed input supply services; (b) inadequacy of groundwater development; (c) poorly developed rural infrastructure (e.g., rural roads, marketing, electrification, and communications); (d) problems of flood management and drainage in flood-prone areas; and (e) failure to tailor agricultural research and technology transfer to local conditions. 16. The poor performance of the agricultural sector in the State is partly caused by a low level of fertilizer use, poor quality seed, inadequate use of conjunctive irrigation with high rainfall, small and fragmented land holdings, absence of rural credit, and deficiencies in research and extension services. Government policies have traditionally promoted public sector control of input distribution, reduce direct public expenditure for capital formation in the agricultural sector, restrict private sector involvement in the provision of essential goods and services, subsidize inefficient public corporations, and distort competition. Resources for operation and maintenance of public infrastructure, including irrigation and drainage, rural roads, and power generating units, have been routinely inadequate. 17. Intensification and diversification of agriculture are essential for accelerating growth in Assam. This shift requires a strategic approach to increase productivity and minimize crop losses that distributes risk and encourages small farmers to respond to changes in market and production technology. The average farm size of 1.3 hectares is the smallest in the country and declining. These small land holdings are fragmented further into 3 to 4 parcels, making them uneconomic units to support the average family of five. Land consolidation should encourage intensification of agriculture in  -4- the large flood-free areas, on the recharged aquifers, in perennial streams and rivulets, and in the vast low-lying areas with adequate residual moisture to raise early-maturing second crops. Successful intensification would require revamped agricultural research and extension services, staff training, infrastructure development, and a supportive policy environment. 18. The GOA recently formulated an agricultural strategy to foster growth and development. The strategy includes policy adjustment and targets small and poor farming communities to (a) develop area-specific assets and infrastructure required to support productive and sustainable farming systems; (b) plan and execute relevant research, extension, and training programs for accelerated agricultural growth, and (c) create a favorable policy and investment framework and an enabling environment for active private sector participation. 19. The GOA has succeeded in enlisting the support of the World Food Program, local and national NGOs, and other bilateral agencies to implement this strategy. This collaboration has already resulted in several small-scale projects for fish production, livestock improvement, groundwater development, and road construction in rural India. Further resources will be needed to expand these development activities. 20. World Bank Support. The Bank has supported agriculture and rural development in India since the early 1950s. One hundred thirty-three projects have received IBRD or IDA financing totaling US$10.6 billion equivalent (81% IDA and 19% IBRD). Of these projects, 53 were for irrigation and command area development (US$5.2 billion equivalent, or 50t of total agricultural lending). The remaining 80 projects can be subdivided as follows: (a) 34 for agricultural support services (credit, research, and extension), at US$2.3 billion equivalent; (b) 24 for commercial agriculture development (fisheries, livestock, tree crops, and agro-industry), at US$1.6 billion equivalent; (c) 12 for forestry, at US$500 million equivalent; and (d) 10 other projects including area development, drought assistance, and cyclone emergency projects, at US$950 million equivalent. 21. In policy reform and lending for agriculture, the Bank has supported two agricultural development projects (ADPs) in Tamil Nadu and Rajasthan whose implementation has been satisfactory. The Government of Tamil Nadu (GOTN) has eliminated subsidies for agricultural inputs including seeds, fertilizers, and pesticides. The Government of Rajasthan has increased expenditure for long-term investment in agriculture by 20% and streamlined its recurrent expenditure, and removed several distortions in its current agricultural policies. 22. The Bank Group has also supported an ADP (Cr.728-IN) with an amount of US$8.0 million for Assam alone as well as 12 other projects in which Assam participated along with other states, for a total credit and loan amount equivalent to US$2.2 billion. Although the proposed project is similar to the earlier ADP, the earlier ADP lacked policy reforms. The other projects include four Agricultural Refinance and Development Corporation Credit Projects (Cr. 540-IN, 715-IN, 947-IN, and 1209-IN and Ln. 2095-IN), two National Dairy Projects (Cr. 824-IN and 859-IN and Ln. 2893-IN), two National Agricultural Research Projects (Cr. 855-IN and 1631-IN), the National Agricultural Extension Project (Cr. 1754-IN), the National Bank for Agricultural and Rural Development Project (Ln. 2653), the National Seeds Project (Cr. 1952-IN), and the Food Grain Storage Project (Cr. 747-IN).  -.5- 23. Lessons from Previous Bank Involvement. Many agricultural projects that the Bank has supported have experienced implementation problems causing delays in disbursement and completion, although there has recently been improvement in disbursements. Problems include delays in project mobilization and procurement; poor quality construction and maintenance of infrastructure (e.g., irrigation, rural roads); institutional weaknesses; inadequate financial support by the state governments; inadequate preparation and implementation of resettlement and rehabilitation programs for affected families; and poor maintenance of assets created by projects. Some projects have faced staff constraints as well. Others have provided for only limited participation of beneficiaries, including NGOs and women, in project planning and implementation. 24. Because the proposed project includes large investments in rural roads and irrigation, lessons from the Bihar Rural Roads Project (Cr. 1072-IN) and the Tube Wells Project in Bihar and West Bengal are relevant. Although the Bihar Rural Roads Project achieved impressive physical targets of road construction within the project period, the design, quality of construction, and road maintenance were poor. As a result, the life of these roads was much shorter than expected. Also, public tube wells in Bihar failed to irrigate the intended cropped area because of weak beneficiary participation, resulting in poor cost recovery for repair and maintenance. By contrast those in West Bengal succeeded after they were handed over to farmer groups. 25. Rationale for Bank Involvement. The proposed project is consistent with the Bank's Country Assistance Strategy (CAS) for India presented to the Executive Directors on May 12, 1994. Among other aspects, the CAS emphasizes providing direct support for specific reforms through policy-based investment operations at the sectoral, state, and economy-wide levels. As demonstrated during the last two years, the Bank is uniquely placed to carry out a dialogue on policy reform with the GOI and state governments and support implementation of a reform program. 26. The strategy places increased importance on private sector initiative and responsibility. It involves: (a) encouraging the private sector to supply goods and services that now are provided exclusively by the public sector; (b) introducing beneficiary participation in the design, operation and maintenance, and financing and ownership of the assets created by the investment; and (c) effecting cost recovery for publicly supplied goods and services to ensure accountability and sustained maintenance of assets. 27. Given the hiQh incidence of poverty in the eastern states of India, including Assam, there is need to redirect Bank assistance to these areas where the marginal productivity of investment is high in order to create regional balance and assist in the alleviation of poverty. The emphasis is on balancing appropriate targeting and delivery of production support services to increase the agricultural production of the poor on the one hand and efficient resource allocation and a reduced role for the public sector on the other. The GOA and the World Food Programme, participating NGOs, and other local  -6- institutions have successfully implemented small-scale development activities in food production and rural infrastructure in selected poor communities. The Bank can play a unique role in assisting the GOA to expand these successful pilot projects. 28. Project Objectives. The primary objectives of the project are to (a) improve equity and alleviate poverty by offering employment opportunities for poorer farmers and women to contribute to agricultural growth and income generation; (b) improve the nutrition of the rural poor; (c) accelerate agricultural growth through improved use of resources, relieving infrastructural and technical constraints, and providing an enabling environment to facilitate the growth of private sector investments; (d) encourage sustainability of resource use and quality of the environment; and (e) strengthen the agricultural policy framework and improve the GOA's long-term capacity for strategic agricultural planning. 29. Proiect Description. The project is intended to benefit the poorest segments of the rural population. To achieve this objective, the project would support: (a) the Department of Agriculture's work program, including the extension services for horticulture, fisheries, and livestock to poor rural communities aimed at increasing their production; (b) institutional development (technology generation and extension, seed multiplication and land administration, and planning and coordination); and (c) rural infrastructure (small scale irrigation and rural roads). Project components also include a number of studies considered necessary for improving the use of natural resources (soil and water management) and the marketing of highly perishable horticultural products. The proposed project would be implemented in eight years starting in 1995/96 and includes a package of state-specific policy reforms agreed to by the Bank and formally approved by the GOA. 30. Targeting of Low-Income Beneficiaries. Project activities would be targeted to selected farming communities according to agreed criteria including accessibility of markets, availability of rural roads, and delivery of inputs supplies. Within these communities, the project would target about 300,000 rural households cultivating about 49,000 hectares. Preference would be given to households limited resources, including small land holdings, low incomes (below the poverty line), and poor access to clean water. The project would assist poor households, especially women cultivators and heads of households, in acquiring access to water, employment, and improved nutrition within their communities. The GOA through the baseline surveys would identify the target group of the poorest in the rural area for project activities. Other rural households and communities would benefit from the improvement and rehabilitation of rural roads and agricultural services. 31. Indigenous People. Indigenous people (scheduled tribes and scheduled castes) form about 18% of the plains population (in 21 of 23 districts) and are scattered over the entire state. The tribal population in rural areas, which is engaged in agriculture and practices farming systems similar to those of its neighbors, is among the beneficiaries of the project. Two hill districts are predominantly tribal areas with a separate administrative arrangement supported by the central government. Because of the special nature of the hill districts in the state, the project would limit its coverage to activities of highest potential, such as fruit production. Under these circumstances, the project does not need a separate development plan for the tribals.  -7- 32. Proposed Reform Proqram. During project preparation, a review of the state budget revealed that recurrent expenditure in agriculture is displacing investment and thereby adversely affecting agricultural growth. The GOA in preparing its agricultural development strategy analyzed these issues. The strategy includes (a) reduction of public sector delivery of production inputs and services, (b) introduction of cost recovery where possible and reduction of subsidies, (c) diversification of farming toward products in which the state has comparative advantage, (d) liberalization of state trade policy, (e) preparation and implementation of demand-driven agricultural research programs, and (f) introduction of policy incentives to promote private sector involvement in agriculture. 33. To implement the above strategy, GOA has formulated a policy reform action plan. During negotiations, GOA confirmed its commitment to implement the policy reform action plan. Under the plan, GOA would: (a) encourage private and cooperative sector investment in fisheries development by extending lease periods for water bodies from three to 7 years by issuing related government orders during 1996; (b) issue government orders by the end of 1996 to invite private sector companies and individuals to operate and manage foundation and certified seed multiplication farms and horticultural nurseries currently run by the Agriculture Department and public agencies; (c) prepare a five-year plan by the end of 1996 to phase out GOA subsidies on agricultural inputs, except those for tribals and scheduled castes covered by special programs; (d) phase out subsidies for farm machinery hire service offered by the Engineering Wing of the Department of Agriculture to encourage private sector involvement by the end of 1996; (e) initiate implementation of the Irrigation Act of 1992 in 1996, according to an agreed plan that would allow full cost recovery of water from beneficiaries, including the cost of electricity for public deep tube wells and lift irrigation schemes; (f) during 1996, issue a government order to facilitate transfer of new and rehabilitated irrigation schemes under the project to beneficiaries; (g) prepare during 1996 a schedule for phasing out non-viable public sector enterprises in agriculture; and (h) during 1996, assign responsibility for fisheries policy development to the Department of Fisheries to include all public water bodies. 34. Project Costs and FinancinQ. Total project costs including physical and price contingencies are estimated at Rs 5,677.5 million (US$146.6 million), of which US$10.1 million, or 6.0% of base costs, would be in foreign exchange. Investment costs and recurrent costs amount to 77% and 23% of base costs, respectively. An IDA Credit of SDR 81.0 million (US$126.0 million) would finance 90t of project costs, excluding taxes and duties. The breakdown of costs and financing is shown in Schedule A. To expedite project start-up, IDA would retroactively finance project expenditures incurred after November 1, 1994 up to a limit of SDR 3.9 M (US$6.0 M equivalent). To facilitate  -8-- timely payment of project expenditures, a Special Account amounting to an equivalent of US$4.0 million (equal to three months average disbursements) would be established at the Reserve Bank of India. Proposed procurement arrangements and disbursement schedule are given in Schedule B. A time table of key processing dates and status of Bank Group operations in India are attached as Schedules C and D, respectively. The Staff Appraisal Report (No.13888-IN) is being distributed separately. Project completion date is June 30, 2003 and closing date is December 31, 2003. 35. Project Organization and Management. Being multisectoral, the project would be implemented by a number of departments and agencies. The agricultural production commissioner (APC) would coordinate and guide these departments and agencies in implementing project activities. Each implementing department or agency would identify one officer who would be responsible for coordinating all its activities under the project. To assist the APC, a Project Implementation Unit (PIU) headed by a director and supported by two economists, an environmentalist, an anthropologist and an accounts officer would be established and supported under the project. 36. At the grassroots level, participation of beneficiaries, particularly women, NGOs, and farmers organizations, would be actively promoted. To the extent possible, the project also would aim at transferring or leasing production assets to the care and management of the local beneficiary groups. Involvement of the GOA in activities better suited for the private sector would be avoided. To achieve this objective the GOA would create an economic environment conducive to the promotion of the private sector in agriculture through policy adjustment as reflected in the policy reform action plan (para 32). 37. Environmental Impact. An environmental analysis of the project was carried out by reviewing each component using guidelines in the Bank's Operational Directive 4.0. Based on this analysis, the project was categorized as "B". The project would have an overall positive impact on the environment through improvement of agricultural practices and land management. The Project Implementation Unit would hire an environmentalist who would have responsibility for developing and implementing guidelines for monitoring all project activities for potential negative environmental impact and advising on mitigating measures. If necessary, technical assistance would be sought from government agencies in the state. Impact on Women 38. Women in Assam play a major role in agriculture and appear eager to be involved in new income-generating activities, but they lack resources and technical knowledge to initiate and sustain new enterprises. The GOA's organized support services for women are largely directed toward welfare and child care. In an effort to reverse the trend, socially oriented NGOs are actively involved in training more women in the skills needed to participate in economic activities. The need to create more jobs for women is even greater in the wage labor market in Assam where they are poorly represented. Of the total employment of 1 million at the end of March 1989, less than 0.3 million, or 30%, were women. 39. Investments under the project such as improvement in the infrastructure (rural roads), and the production of livestock, fish, fruits, and vegetables would contribute to the welfare of women. Involving female  - 9- beneficiaries in project planning, including selection of activities and their location, would give them an opportunity to express their views on those issues that affect them most. 40. Sustainabilit . Once completed, project activities would be sustained. Incremental staffing would be kept to the minimum, and additional recurrent costs would be within manageable limits. Most of the assets created by the project would be transferred to the beneficiaries, who would operate the assets and share the cost of operation and maintenance. Production assets in horticulture, fisheries, and livestock would be supported through ongoing research and extension services. Local NGOs would continue to support water user groups in managing tube wells and ponds constructed under the project. The improved policy environment, especially for marketing and processing, would provide financial incentives for the groups to maintain their newly acquired assets. Rural roads would be maintained by the GOA out of its state budget; through the project, the GOA would have prepared a state policy and financing arrangements for road repair and maintenance. 41. Project Benefits. The proposed project would contribute to the GOA's objectives for poverty alleviation and would improve equity in the rural areas. It also would accelerate agricultural growth through improved use of resources. The policy reforms to be carried out through the project would lead to the allocation of resources to high-priority investments for agricultural and rural development. 42. The proposed project would benefit about 300,000 poor rural people by directly increasing their average annual net income from farming alone by about 60%, from about Rs 3,000 to Rs 4,700. In addition, while improving the community assets, the construction works would generate about 75 million man- days of seasonal and nonfarm employment through the road, fisheries, and irrigation infrastructure supported under the project. Furthermore, the nutrition of the rural population would be improved through increased production of fish, fruit and vegetables, and milk. 43. Agreed Actions. Agreements were reached at negotiations that GOA would: (a) ensure that project implementing departments/agencies maintain separate accounts for all components supported under the project and implement proposed audit arrangements; (b) contract with NGOs selected according to criteria agreed with the Association to participate in project activities; (c) maintain a Project Implementation Unit with staffing and responsibilities agreed with the Association; (d) maintain the Project Guidance Committee and the Project Coordination Committee with membership and responsibilities agreed with the Association; (e) prepare and submit to the IDA by the end of March of each year starting in 1996 annual work plans and budgets for the project satisfactory to the Association; (f) carry out land acquisition and resettlement and rehabilitation of any people affected under the project in accordance with arrangements and procedures agreed with the Association;  -10- (g) ensure that implementing departments' and agencies' staff interact with beneficiaries and agree on the choice, location, design, preparation, and implementation of activities supported by the project; and (h) carry out with the assistance of consultants, a mid-term review by June 30, 1999, (end of the fourth year of project implementation) and implement the recommendations of the review. 44. Disbursement of Credit proceeds for rural road repair and maintenance would be conditional to preparation of a road maintenance policy, financing arrangements and an implementation plan satisfactory to the Association. 45. The project faces four major risks: (a) Funding. Poor budgetary support could slow down implementation. To minimize the risk, the GOA would submit an annual budget and commit itself to improve cost recovery and establish adequate financial control measures that would be monitored during project implementation. Funding needed for O&M would be the responsibility of the beneficiaries. Pace of implementation, quality of construction, and delivery of services would be monitored by local NGOs and reported to concerned agencies every six months. (b) Policy Reform and Commitment. Timely and effective implementation and adherence by the GOA to the agreed policy reforms are crucial to the success of the project. To minimize the risk, tangible proof of readiness to implement the reforms has already been demonstrated in the preparation of the state agricultural strategy paper and the steps already taken to implement the items described in the policy matrix. Implementation of policy reforms would be reflected in the GOA's annual work plans and budgets for Bank review. There would be close Bank supervision to ensure that dated covenants associated with the reforms are met. Despite the built- in safeguards, however, implementation of policy reform could be delayed or even modified due to political events. General elections will be held in 1996, and the political scenario in the country is changing fast. Announcements of populistic measures involving hand-outs from public funds are increasing markedly. It would be unrealistic to expect that Assam would not be influenced by this political trend. (c) Institutional Capacity. The success of the project depends on active participation of local and national NGOs. There is the risk that such participation may be slow to materialize, and government bureaucracy may delay the transfer of new assets to the farming communities. Also, institutional weakness could pose risks for project implementation. Quality of works (construction and maintenance of rural roads) could suffer from inadequate staffing, supervision, and standard enforcement. To enhance quality of construction, the project would provide technical assistance to train and motivate staff.  -11- (d) Security. The security situation in Assam may delay field visits, implementation, and timely supervision and monitoring. Project activities and investment programs would be restricted to areas where security problems are minimal. Active involvement of beneficiaries (FMCs, WUA, etc) in the decision-making process and their ownership of the project should reduce the security risk. 46. Recommendation. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association and recommend that the Executive Directors approve the proposed credit. Lewis T. Preston President by Gautam S. Kaji Attachments Washington, D.C.  -12- Schedule A INDIA ASSAM RURAL INFRASTRUCTURE AND AGRICULTURAL SERVICES PROJECT Estimated Costs and Financing Plan COMPONENTS Local Foreign Total W Foreign exchange --millions of U.S. dollars-- POVERTY ALLEVIATION 22.7 1.4 24.1 6 Horticulture 2.5 0.2 2.7 6 Fisheries 8.2 0.7 8.9 8 Livestock Development 12.0 0.5 12.5 4 INSTITUTIONAL DEVELOPMENT 21.7 1.3 23.0 6 Technology Generation 2.6 0.2 2.8 8 Education and Training 2.4 0.1 2.5 5 Extension Service 10.4 0.4 10.8 4 Seed Multiplication 0.2 0.0 0.2 7 Land Administration 6.1 0.6 6.7 9 INFRASTRUCTURE 69.1 5.6 74.7 8 Irrigation 15.3 0.8 16.1 5 Rural Roads 53.8 4.8 58.6 8 PROJECT IMPLEMENTATION 2.2 0.0 2.2 2 TOTAL BASE COSTS 115.7 8.3 124.0 7 Physical Contingency 12.4 1.0 13.4 7 Price Contingency 8.4 0.8 9.2 9 TOTAL PROJECT COSTS1 136.5 10.1 146.6 7 Financing Plan: Local Foreign Total --millions of U.S. dollars-- IDA 115.9 10.1 126.0 Government of Assam and Beneficiaries 20.6 0.0 20.6 Total 136.5 10.1 146.6 Including taxes and duties of US$7.3 million  -13- Schedule B Page 1 of 2 Amounts and Methods of Procurement Cateqorv ICB NCB OTHER TOTAL --------millions of U.S. dollars--------- Works Road and Bridge 55.0 0.0 55.0 Construction (55.0) (55.0) Road Maintenance 8.0 8.0 (8.0) (8.0) Buildings and other 12.0 2.6 14.6 Infrastructure (12.0) (12.0) Goods Vehicles, 20.0 2.9 22.9 Machinery, (20.0) (20.0) Tools, Equipment, Furniture, and Materials Agricultural 7.0 7.0 Materials and (6.0) (6.0) Livestock Consultancies and Training Policy Support 0.5 0.5 (0.5) (0.5) Implementation Support 4.3 4.3 (4.3) (4.3) Capacity Building 5.2 5.2 (5.2) (5.2) Incremental OperatinQ Costs Salaries and Wages 8.2 8.2 (3.0) (3.0) O&M of Vehicles and 14.5 14.5 Equipment, (8.0) (8.0) Maintenance of Buildings Office Supplies 6.4 6.4 (4.0) (4.0) Total 20.0 67.0 59.6 146.6 (20.0) (67.0) (39.0) (126.0) Note: Figure in the parenthesis are the respective amounts financed by the IDA Credit.  -14- Schedule B Page 2 of 2 Summary of Disbursement Schedule Category Amount Allocated Percent Financed (US$ M) Foreign Local Works Road and Bridge 55.0 100 100 Construction Road Maintenance 8.0 100 100 Buildings and other 12.0 100 80 Infrastructure Goods Vehicles, 20.0 100 80 Machinery, Tools, Equipment, Furniture, and Materials Agricultural 6.0 100 80 Materials and Livestock Consultancies and Traininq Policy Support 0.5 100 100 Implementation Support 4.3 100 100 Capacity Building 5.2 100 100 Incremental Operating Costs2 Salaries and Wages 3.0 35 O&M of Vehicles and 8.0 55 Equipment, Maintenance of Buildings Office Supplies 4.0 60 Total 126.0 Estimated IDA Disbursements FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 ------ millions of U.S. dollars------------ Annual 12.6 16.4 18.9 17.7 17.6 17.6 15.1 10.1 Cumulative 12.6 29.0 47.9 65.6 83.2 100.8 115.9 126.0 2 70% in 1995 through March 31, 1996, 50% through March 31, 1998 and 20% thereafter.  -15- Schedule C INDIA ASSAM RURAL INFRASTRUCTURE AND AGRICULTURAL SERVICES PROJECT Timetable of Key Project Processing Events (a) Time taken to prepare: 27 months (approximately) (b) Prepared by: Government of Assam, Consultants and Bank (c) First IDA mission: February 5-7, 1992 (d) Appraisal mission: October 22, 1994 (e) Negotiations: April 3, 1995 (f) Planned date of effectiveness: July 1, 1995 Note: The report is based on the findings of IBRD/IDA Appraisal mission which visited the project area October/November 1994. The mission consisted of Messrs. G. Mukami (Task manager), E. Betubiza, A. Venkataraman, K. Venkataraman, C. Nawathe, R. Zweig (Bank); K. Deveraj, 0. Kaushik, K. Palanisami (Consultants). Assistance was also provided by Peer Reviewers: Messrs. M. Macklin, S. Oliver and W. Price.  SCHEDULE D INDIA PAGE 1 OF 6 Status Of Bank Group Operations In INDIA PFDBR25 - Surmmary Statement Of Loans and IDA Credits (LOA data as of 3/31/95 - MIS data as of 04/21/95) By Country Country: INDIA Amount in US$ million (less canceLLations) Loan or Fiscal Undis- CLosing Credit No. Year Borrower Purpose Bank IDA bursed Date Credits 198 Credits(s) closed 14,643.79 C16210-IN 1986 INDIA MAHARASHTRA IRRIG. 1 128.82 62.59 12/31/96 C16310-IN 1986 INDIA NATIONAL AGRIC. RES. 57.21 13.23 06/30/95 C17500-IN 1987 INDIA BOMBAY III WATER SUP 145.00 61.71 06/30/95 C17570-IN 1987 INDIA GUJARAT RURAL ROADS 96.75 29.67 12/31/95 C17800-IN 1987 INDIA U.P. URBAN DEVELOPME 120.95 47.31 03/31/96 C19230-IN 1988 INDIA TAMIL NADU URBAN 254.73 85.27 09/30/95 C19310-IN 1988 INDIA BOMBAY & MADRAS POP. 57.00 20.15 12/31/95 C19520-IN 1989 INDIA NATIONAL SEEDS III 147.24 56.46 06/30/95 C20080-IN 1989 INDIA VOCATIONAL TRAINING 163.85 100.29 12/31/96 C20100-IN 1989 INDIA UPPER KRISHNA PHASE 160.00 29.12 12/31/96 C20220-IN 1989 INDIA NATIONAL SERICULTURE 133.35 54.21 12/31/96 C20570-IN 1989 INDIA FAMILY WELFARE TRG ( 72.76 37.64 03/31/97 C20640-IN 1990 INDIA TECHNOLOGY DEVELOPME 55.00 45.99 12/31/95 C20760-IN 1990 INDIA PUNJAB IRR & DRAINAG 145.28 100.82 03/31/98 C21000-IN 1990 INDIA WTRSH HILLS 75.00 56.17 06/30/97 C21150-IN 1990 INDIA HYDERABAD W/S 79.90 54.07 03/31/98 C21300-IN 1990 INDIA TECH EDUC I 210.74 135.05 06/30/98 C21310-IN 1990 INDIA WTRSH PLAINS 55.00 46.11 03/31/98 C21330-IN 1990 INDIA POP. TRG (VII) 63.96 34.04 06/30/98 C21580-IN 1990 INDIA SECOND TN NUTRITION 67.52 36.95 12/31/97 C21730-IN 1991 INDIA ICDS I (ORIS & ANDHR 74.35 46.21 12/31/97 C22150-IN 1991 INDIA AGR.DEV.I (TN) 92.80 59.86 09/30/98 C22230-IN 1991 INDIA TECH EDUC 11 255.73 210.35 06/30/99 C22340-IN 1991 INDIA MAHARASHTRA RURAL WS 109.90 90.09 12/31/97 C22410-IN 1991 INDIA DAM SAFETY 130.00 126.37 09/30/97 C22520-IN 1991 INDIA IND POLLUTION CONTRO 31.60 34.16 06/30/98 C23000-IN 1992 INDIA HEALTH I (MCH) 214.50 85.80 09/30/95 C23280-IN 1992 INDIA MAHARASHTRA FORESTRY 124.00 118.24 09/30/98 C23290-IN 1992 INDIA SHRIMP & FISH CULTUR 85.00 90.88 06/30/99 C23410-IN 1992 INDIA WEST BENGAL FORESTRY 34.00 20.83 09/30/97 C23500-IN 1992 INDIA AIDS PREVENTION AND 84.00 68.76 09/30/97 C23650-IN 1992 INDIA NAT. HIGHWAYS II 153.00 148.61 06/30/01 C23940-IN 1992 INDIA POPULATION VIII 79.00 85.49 06/30/01 C24090-IN 1993 INDIA RUBBER 92.00 94.40 09/30/99 C24330-IN 1993 INDIA ADP - RAJASTHAN 106.00 87.89 09/30/99 C24390-IN 1993 INDIA BIHAR PLATEAU 117.00 115.00 06/30/98 C24490-IN 1993 INDIA RENEWABLE RESOURCES 115.00 123.64 12/31/99 C24500-IN 1993 INDIA JHARIA MINE FIRE CON 12.00 11.94 06/30/95 C24700-IN 1993 INDIA ICDS II (BIHAR & MP) 194.00 208.71 09/30/00 C24830-IN 1993 INDIA KARNATAKA WS & ENV/S 92.00 96.07 12/31/99 C25090-IN 1993 INDIA UTTAR PRADESH BASIC 165.00 160.09 09/30/00 C25100-IN 1993 INDIA UP SODIC LANDS RECLA 54.70 56.37 03/31/01 C25280-IN 1993 INDIA NATL LEPROSY ELIMINA 85.00 87.08 03/31/00 C25720-IN 1994 INDIA FORESTRY RESEARCH ED 47.00 46.52 12/31/99 C25730-IN 1994 INDIA ANDHRA PRADESH FORES 77.40 80.75 09/30/00 C25920-IN 1994 INDIA WATER RES CONSOLID H 258.00 276.22 12/31/00 C25940-IN 1994 INDIA MAHARASHTRA EARTHQUA 246.00 246.72 06/30/97  INDIA SCHEDULE D Status Of Bank Group Operations In INDIA PAGE 2 OF 6 PFDBR25 - Summary Statement Of Loans and IDA Credits (LOA data as of 3/31/95 - MIS data as of 04/21/95) By Country Country: INDIA Amount in USS million (Less canceLLations) Loan or FiscaL Undis- CLosing Credit No. Year Borrower Purpose Bank IDA bursed Date C26110-IN 1994 INDIA BLINDNESS CONTROL 117.80 127.53 06/30/01 C26300-IN 1994 INDIA POPULATION IX 88.60 94.36 12/31/01 C26450-IN 1995 INDIA INDUS POLLUTION PREV 25.00 26.53 03/31/02 C26610-IN 1995 INDIA DISTRICT PRIMARY ED 260.30 267.96 03/31/02 C26630-IN 1995 INDIA AP DISTRICT HEALTH S 133.00 139.60 03/31/02 * C26990-IN 1995 INDIA AGRIC HUMAN RES DEVT 59.50 63.01 12/31/00 * C27000-IN 1995 INDIA MP FORESTRY 58.00 61.30 12/31/99 TOTAL number Credits 54 6,161.23 4,764.20 Loans 133 Loans(s) closed 10,878.90 L27690-IN 1987 INDIA BOMBAY III WATER SUP 20.00 20.00 06/30/95 L27960-IN 1987 INDIA COAL MINING AND COAL 322.78 16.22 09/30/95 L28440-IN 1987 INDIA NAT. CAPITAL POWER S 373.00 76.32 06/30/95 L28450-IN 1987 INDIA TALCHER THERMAL 367.00 130.15 03/31/96 L28460-IN 1987 INDIA MADRAS WATER SUPPLY 53.00 18.43 12/31/95 L28930-IN 1988 INDIA NATIONAL DAIRY 11 200.00 111.00 12/31/95 L29281-IN 1988 INDIA IND. FINANCE I 45.00 6.96 06/30/95 L29350-IN 1988 INDIA RAILWAYS MODERNIZ. I 252.50 4.19 12/31/95 L29940-IN 1989 INDIA STATE ROADS I 115.00 64.44 06/30/95 L30240-IN 1989 INDIA NATHPA JHAKRI HYDRO 485.00 356.64 12/31/97 L30440-IN 1989 INDIA PETRO. TRANSPORT 50.00 6.33 06/30/95 L30500-IN 1989 INDIA UPPER KRISHNA PHASE 45.00 45.00 12/31/96 L30580-IN 1989 INDIA EXPORT DEVELOPMENT 120.00 7.43 03/31/96 L30930-IN 1989 INDIA ELECTRONICS 8.00 7.24 12/31/95 L30960-IN 1989 INDIA MAHARASHTRA POWER 354.00 215.35 12/31/96 L31190-IN 1990 INDIA TECHNOLOGY DEVELOPME 135.00 46.60 12/31/95 131960-IN 1990 INDIA CEMENT INDUSTRY REST 293.18 64.47 06/30/96 L32370-IN 1990 INDIA NOR REG TRANSM 485.00 426.89 09/30/98 L32390-IN 1990 INDIA PRIVATE POWER UTIL ( 98.00 19.13 06/30/95 L32580-IN 1991 INDIA PETROCHEMICALS 12.00 9.31 09/30/96 L32590-IN 1991 INDIA PETROCHEMICALS 202.70 108.32 09/30/96 L33000-IN 1991 INDIA AGR.DEV.I (TN) 20.00 20.00 09/30/98 L33250-IN 1991 INDIA DAM SAFETY 23.00 23.00 09/30/97 L33340-IN 1991 INDIA IND POLLUTION CONTRO 124.00 55.46 06/30/98 L33440-IN 1991 INDIA PRIVATE POWER UTIL I 200.00 42.41 12/31/96 L33640-IN 1991 INDIA GAS FLARING REDUCTIO 450.00 21.49 12/31/95 L34360-IN 1992 INDIA POWER UTIL EFFIC IMP 265.00 232.34 12/31/97 L34700-IN 1992 INDIA NAT. HIGHWAYS 11 153.00 153.00 06/30/01 L34980-IN 1992 INDIA MAHARASHTRA POWER 11 350.00 306.86 06/30/98 L35440-IN 1993 INDIA RENEWABLE RESOURCES 75.00 5.47 12/31/95 L35770-IN 1993 INDIA PGC POWER SYSTEM 350.00 312.08 06/30/00 L36300-IN 1993 INDIA PRIVATE POWER DEVT T 20.00 20.00 12/31/95 L36320-IN 1993 INDIA NTPC POWER GENERATIO 400.00 383.07 09/30/97 L37530-IN 1994 INDIA CONTAINER TRANSPORT 94.00 94.00 12/31/99 L37790-IN 1995 INDIA INDUS POLLUTION PREV 93.00 88.00 03/31/01 L37800-IN 1995 INDIA INDUS POLLUTION PREV 50.00 50.00 03/31/01 L38560-IN 1995 INDIA FINANCIAL SECTOR DEV 350.00 281.64 10/31/00 L38570-IN 1995 INDIA FINANCIAL SECTOR DEV 150.00 150.00 10/31/00  INDIA SCHEDULE D Status Of Bank Group Operations In INDIA PFDBR25 - Summary Statement Of Loans and IDA Credits PAGE 3 OF 6 (LOA data as of 3/31/95 - MIS data as of 04/21/95) By Country Country: INDIA Amount in USS miLLion (less cancellations) Loan or FiscaL Undis- CLosing Credit No. Year Borrower Purpose Bank IDA bursed Date L38580-lN 1995 INDIA FINANCIAL SECTOR DEV 200.00 200.00 10/31/02 TOTAL number Loans = 39 7,403.16 4,199.24 TOTAL*** 18,282.06 20,805.02 of which repaid 5,256.88 1,333.81 TOTAL held by Bank & IDA 13,025.19 19,471.21 Amount soLd 133.77 of which repaid 133.77 TOTAL undisbursed 9,014.60 Notes: * Not yet effective ** Not yet signed ** Total Approved, Repayments, and Outstanding balance represent both active and inactive Loans and Credits. (R) indicates formaLLy revised CLosing Date. (S) indicates SAL/SECAL Loans and Credits. The Net Approved and Bank Repayments are historical value, alL others are market value. The Signing, Effective, and Closing dates are based upon the Loan Department officaL data and are not taken from the Task Budget file.  Status Of Bank Group Operations In INDIA PFDBR25B - List of Closed SALs and Secals SCHEDULE D ---------------------------------------------------- PAGE 4 OF 6 By Country Country: INDIA Amount in USS million (less cancellations) Loan or Fiscal Undis- Closing Credit No. Year Borrower Purpose Bank IDA bursed Date C23160-lN 1992 INDIA SAL I 220.00 .00 12/31/1992 C23161-IN 1992 INDIA SAL I 30.00 .00 12/31/1992 C24480-IN 1993 INDIA SOCIAL SAFETY NETS 87.40 .00 08/31/1994(R) C24481-IN 1993 INDIA SOCIAL SAFETY NETS 89.40 .00 08/31/1994(R) C24482-IN 1993 INDIA SOCIAL SAFETY NETS 203.80 .00 12/31/1993 C24483-IN 1993 INDIA SOCIAL SAFETY NETS 119.40 .00 08/31/1994(R) L33910-IN 1992 INDIA OIL & GAS SECTOR DEV 150.00 .00 06/30/1992 L34210-IN 1992 INDIA SAL 1 250.00 .00 12/31/1992 L36270-IN 1993 INDIA EXTERNAL SECTOR ADJU 300.00 .00 12/31/1993 Total INDIA 700.00 750.00 .00  SCHEDULE D PAGE 5 OF 6 B. STATEMENT OF IFC INVESTMENTS ____________________________ (as of March 31, 1995) Amount (US$ million) Fiscal Year Company Loan Equity Total 1959 Republic Forge Company Ltd. 1.50 -- 1.50 1959 Kirloskar Oil Engines Ltd. 0.85 -- 0.85 1960 Assam Sillimanite Ltd. 1.36 -- 1.36 1961 K.S.B. Pumps Ltd. 0.21 -- 0.21 1963-66 Precision Bearings India Ltd. 0.65 0.38 1.03 1964 Fort Gloster Industries Ltd. 0.81 0.40 1.21 1964 Lakshmi Machine Works Ltd. 0.96 0.35 1.31 1964-75-79/90 Mahindra Ugine Steel Co. Ltd. 11.81 2.66 14.47 1967 Indian Explosives Ltd. 8.60 2.86 11.46 1967 Jayshree Chemicals Ltd. 1.05 0.10 1.15 1969-70 Zuari Agro-Chemicals Ltd. 15.15 3.76 18.91 1977-87 Escorts Limited 15.55 -- 15.55 1978-87/91/93 Housing Development Finance Corp. 106.32 4.05 110.37 1980/82/87/89 Deepak Fertilizer and Petrochemicals Corporation Ltd. 7.50 4.23 11.73 1981-82 Nagarjuna Coated Tubes Ltd. 1.50 0.24 1.74 1981-82 Nagarjuna Steels Limited 2.88 0.24 3.12 1981-86-89-92-94 Tata Iron and Steel Company Ltd. 132.14 24.49 156.63 1981-90-93-94 Mahindra & Mahindra Ltd. 29.71 9.68 39.39 1982 Ashok Leyland Limited 28.00 -- 28.00 1982 Coromandel Fertilizers Limited 15.88 -- 15.88 1982 The Bombay Dyeing and Manufacturing Co. Ltd. 18.80 -- 18.80 1982-87 ITW Signode 2.99 1.01 4.00 1982-87 The Indian Rayon Corp. Ltd. 14.57 -- 14.57 1983 Bharat Forge Company Ltd. 15.90 -- 15.90 1984-86 The Gwalior Rayon Silk Manufacturing (Weaving) Co. Ltd. 15.95 -- 15.95 1985 Bajaj Auto Ltd. 23.93 -- 23.93 1985 Modi Cement 13.05 -- 13.05 1985-86/90-91-94 India Lease Development Ltd. 8.50 1.08 9.58 1985/91 Bihar Sponge 15.24 0.68 15.92 1986 Bajaj Tempo Limited 30.54 -- 30.54 1986-93/94 India Equipment Leasing Ltd. 5.50 0.44 5.94 1986 Larsen and Toubro Ltd. 21.78 -- 21.78 1986-87-88-92-93 The Great Eastern Shipping Company Ltd. 41.25 13.89 55.14 1986-87-91/95 Export-Import Bank of India 39.34 _ 39.34 1987 Gujarat Fusion Glass Ltd. 7.52 1.70 9.22 1987 Gujarat Narmada Valley Fertilizer 38.07 -- 38.07 1987 Hero Honda Motors Ltd. 7.74 -- 7.74 1987 Hindustan Motors Ltd. 39.14 -- 39.14 1987 The Gujarat Rural Housing Finance Corp. -- 0.19 0.19 1987 Wimco Limited 4.70 -- 4.70 1987/89-90/92/93 Titan Watches Limited 22.02 1.15 23.17 1988/94 Invel Transmissions Ltd. -- 1.40 1.40 1989 Ahmedabad Electricity Company, Ltd. 20.83 -- 20.83 1989 WTI Advanced Technology -- 0.20 0.20 1989-90 Keltron Telephone Instruments, Ltd. -- 0.56 0.56 1989-92 Gujarat State Fertilizer 40.46 -- 40.46 1989-95 JSB India Securities Firms 2.35 0.37 2.72 1990 UCAL Fuel Systems Ltd. -- 0.63 0.63 1990-91/94 Tata Electric 111.88 18.75 130.63 1991 ATIC Industries Export Finance 0.28 -- 0.28 1991 Bombay Electric 68.00 -- 68.00 1991 CESC Ltd. 85.03 -- 85.03 1991 Export Finance - AFDC 0.35 -- 0.35 1991 Herdilla Oxides and Electronics Ltd. -- 0.29 0.29 1991-94 Indust. Credit & Investment Corp. of India -- 25.85 25.85 1991-93-95 Infrastructure Leasing & Financial Services 40.00 4.92 44.92 1991 TDICI Development Finance Companies -- 2.05 2.05 1993 TRIVENI -- 1.30 1.30 1991 Varun Transport, Storage & Communications 17.04 3.06 20.10 1992 Arvind Mills 22.13 19.16 41.29  SCHEDULE D PAGE 6 OF 6 Amount (US$ million) Fiscal Year Company Loan Equity Total 1991 INDUS VC MGMT -- 0.01 0.01 1991 Block KG-OS-IV -- 8.20 8.20 1991 INDUS VCF -- 1.01 1.01 1992 Kotak Mahindra 0.66 -- 0.66 1992 - Nippon Denro 40.00 5.77 45.77 1992 SKF Bearings 11.50 -- 11.50 1992-94 Creditcapital VF -- 1.11 1.11 1993 NICCO-UCO 3.00 0.25 3.25 1993 20th CENTURY 16.00 0.80 16.80 1993 Info Tech Fund -- 0.64 0.64 1993 CRDCAP Asset Management -- 0.32 0.32 1993 Taurus Starshare -- 7.17 7.17 1994 Gujarat Ambuja 35.14 8.23 43.37 1993-94 Indo Rama Spinning & Weaving 35.00 9.84 44.84 1994 Centurion Growth -- 2.39 2.39 1994 TCAMC -- 0.16 0.16 1994 DLF Cement 39.36 -- 39.36 1994 Global Trust Commercial Banks -- 3.19 3.19 1994 Chowgule -- 4.58 4.58 1994 Centurion Bank -- 3.87 3.87 1994 GESCO Transport & Communications -- 2.15 2.15 1994 ISIC Brokerage -- 0.32 0.32 1994-95 Prism Cement 30.00 5.02 35.02 TOTAL GROSS COMMITMENTS 1388.01 217.15 1605.16 Less: Cancellation, Terminations, Exchange Adjustments, Repayments, Writeoffs and Sales 753.07 85.34 838.41 Total Commitments Now Held by IFC 634.85 131.81 766.66 Undisbursed 94.99 0.51 95.50 Total Outstanding 539.88 131.30 671.18 Source: IFC Statement of Investments as of March 31, 1995.