India - Madhya Pradesh Forestry Project

-/t~- 62 7c7 - IIY Danent of The World Bank FOR OMCLIL USE ONLY Rqont No. P-6555-IN MEMORANDUM AND RECOMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPHENT ASSOCIATION TOTE EKECUTIVE DIRECTORS ON A PROPOSED CREDIT IN THE AMOUNT EQUIVALENT TO SDR 39.4 MILLION TO INDIA FOR A MADHYA PRADESH FORESTRY PROJECT FEBRUARY 28, 1995 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Rupees (Rs.) US$1.00 = Rs.32 WEIGHTS AND MEASURES The metric system is used throughout this report GOVERNMENT FISCAL YEAR April I to March 31 ABBREVIATIONS ERR Economic Rate of Return GOI Government of India GOMP Government of Madhya Pradesh IDA International Development Association JFM Joint Forest Management MPFD Madhya Pradesh Forest Department NGO Non-Governmental Organization NTFP Non-Timber Forest Produce PA Protected Area SFRI State Forest Research Institute VRDP Village Resource Development Program  FOR OFFICIAL USIE ONLY INDIA MADHYA PRADESH FORESTRY PROJECT CREDIT AND PROJECT SUMMARY Perrower: India, Acting by its President Implementing Agency: Madhya Pradesh Forestry Department (MPFD), Government of Madhya Pradesh (GOMP) Amount: IDA Credit of SDR 39.4 million (US$58.0 million equivalent) Terms: Standard, with 35 years maturity On-Lending Terms: From GOI to GOMP as part of central assistance to the state for development projects on standard terms and conditions applicable at the time. GOI would assume the foreign exchange risk Poverty Category: Program of Targeted Interventions The project main beneficiaries, fringe tribal peoples and forest villagers, belong to the poorest sections of society. Tribal development concerns are central to the project and are addressed in an integral fashion under the rubric of social impact, participation and equity, rather than as a subsidiary tribal development plan. The project also incorporates specific measures to safeguard the interests of the landless and women, through participation in village committees, employment preference, and gender sensitive monitoring. Financing Plan: 6g % IDA 9.1 48.9 58.0 G}I 1/ 0.0 9.3 9.3 Total 9.1 58.2 67.3 1/ Including duties and taxes of US$2.4 million Economic Rate of Retum: 11.5 percent, excluding significant unquantifiable environmental benefits Staff Appraisal Report: 13408-IN Map: IBRD 26171 This document has a sricted distibution and may be used by recipients only in the perfosnae of their official duties. Its contents may not otherwise be disclosed wiithout World BanI authorization.  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO INDIA FOR MADHYA PRADESH FORESTRY PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed loan to India for the equivalent of SDR 39.4 million (US$58.0 million), on standard IDA terms, with a maturity of 35 years, to help finance a Madhya Pradesh Forestry Project. 2. Background. About 22 percent of the land area of India, or about 73 million hectares, is covered by forests which play an important role in the conse. vation of environmental quality. The contribution of the forestry sector to GNP has been estimated at less than two percent, but this does not take into account non-market and external benefits, illegally-harvested fuelwood and timber, nor the importance of the forests to supporting the cattle population. Most of India's forests are degraded and productivity is poor. Forest degradation is believed to be increasing with the rising population and over-exploitation of grazing resources in forested areas. Government is addressing the problems of the forestry sector through policy reformns, legislation and afforestation. The National Forest Policy, revised in 1988, treats forests: first as an ecological necessity; second as a source of goods for use by local populations, with particular emphasis on non-timber forest products; and tird as a source of wood and other products for industries and other non-local uses. The policy encourages industries to obtain raw materials from farn forestry. The Eighth Five Year Plan (1992- 97) further emphasizes investments for reforestation and rehabilitation of degraded forests, and for farm forestry. 3. The state of Madhya Pradesh, the largest in India, covers about 14 percent of the geographical area of the country. It encompasses the major part of the highlands of central India and constitutes parts of the upper catchments of five principal river systems. Maintenance of the ecological balance in the state is, therefore, of critical national importance. About 20 percent of the nation's forests lie within Madhya Pradesh amounting to about 15.5 million ha of legally designated forest. Of this, about 60 percent is closed forest, with canopy cover of greater than 40 percent, and the remainder is open forest with less than 40 percent canopy cover. Rising human and animal populations put increasing pressure on the forest resources, reflected in both degradation and an increase in the proportion of open forests. 4. Future Development of the Foresty Sector in Madhya Pradesh. The objectives of the future development of the forestry sector in Madhya Pradesh would be, in accordance with the National Forest Policy of 1988: to ensure environmental stability and maintain ecological balance; to conserve the national biological heritage; to increase substantially the forest and tree cover in forest and farm lands; to increase the productivity of forests; and to give people responsibility for the management of forests and trees to achieve these objectives. Since these objectives represent a major change from the traditional objectives for the forest sector, a new strategy for the future development of the sector has been formulated by GOMP. This strategy would involve: changes in the sectoral policy framework and the approach of MPFD; changes in planning, monitoring and evaluation procedures and related information management; and changes in program implementation  2 that emphasize participation of people in the management of forest resources. To realize these changes would require training for staff and communities, so human resource development would be a crucial element of the strategy. Implementation of the strategy would be based on programs related to a classification of the state according to management objectives as follows: Area Primary Management Objcctivcs (1) Conservation Armas Conservation of biodiversity (ii) Closed Forests Maintenance of forest cover Timber and NTFP production (iii) Open Forests Increase in forest cover Production of local community requirements for forest products (iv) Private and Community Lands Private and community forestry (v) Village common Innds in Production of local community requirements for forcst products forest fringe areas 5. Project Objectives and Design. The main objective of the project would be to assist with the implementation of the GOMP strategy for development of the forestry sector in Madhya Pradesh. More specifically the objectives are: to develop the necessary human resources for the planning, implementation and monitoring of the strategy; to ensure that management pr,ocedures and the structure and resources of MPFD are appropriate to its role as the nodal public sector agency in the forestry sector; to assist with the prioritization of various types of land through improved planning at a macro-scale; to increase both forest cover and productivity through development of participatory processes for management and use of forest resources, taking special account of the interests of tribal peoples and other disadvantaged groups; to adapt and improve existing technologies and to provide technical and management advice; to improve incentives for forest management and the cultivation of trees; and to promote the conservation of biodiversity. 6. Future development of the forestry sector in Madhya Pradesh will involve long-term programs, so a strategic plan is needed for the provision of IDA support to the sector over a period of about ten years. Given the area of forest in Madhya Pradesh and its economic and environmental impo,tance to both the state and the nation, investments over a ten-year period could total more than US$200 million. However, the GOMP strategy for the sector, described above, involves substantial change in the way the sector is managed and the introduction of innovative new programs for participatory management of forests. Lessons from previous Bank lending show that these changes take time and may slow implementation. Consequently, strategic planning for the provision of IDA support to the sector, is based on a two-stage approach. The first stage would be a project of four years duration, which is described below. This is designed to allow MPFD to develop the new processes, systems and skills required for implementation of the new GOMP strategy and to provide for necessary investments in the sector. Project support for improved management would have an impact on the sector as a whole. Investments in forest development and management would be initiated throughout the state, but in a small proportion of the 15.4 million ha of forest land and in a representative number of the 30,000 villages located in forest fringe areas. These would form the basis of larger scale investments that could be provided in a second-stage project, that would build on experience gained, and incorporate any necessary modifications to programs and processes initiated during the first stage project. Approval for such a second stage project could be sought during the fourth year  3 of implementation of the first stage. It is not possible to be precise about its magnitude as it would depend on implementation experience. However, it can be assumed that successful forest development programs would grow exponentially, so investments would be correspondingly greater. 7. Project Description. The project area would cover the entire State of Madhya Pradesh. The project is designed to be of four years duration, forming the first stage of planned long-term support to the sector. Approval for a second-stage project of up to five years duration would be sought during the last year of implementation of the first stage. This flexible design allows MPFD to develop the new processes, systems and skills required for implementation of the National Forest Policy and to modify these in the light of experience as necessary. The project would have four main components as follows: (i) Management Development to improve the management of the sector through: changing the approach of MPFD from a predominantly regulatory role, to one in which communities are treated as partners in the management of forest resources; increasing policy analysis capabilities; and improving the management skills of senior MPFD staff, supported by the introduction of improved management systems, for planning, implementation, monitoring and evaluation procedures, together with improved management information and geographical information systems; and (ii) Forest Development involving: (a) the promotion of natural forest regeneration, supported by enrichment planting, improved silvicultural practices, and forest floor management over an area of about 165,000 ha; and (b) a Village Resource Development Program (VRDP) based on participatory planning and management of forest resources, integrated with activities to generate alternative incomes or resources, to reduce the pressure on the forests. A total of about 1,140 villages would be involved, managing an area of about 74,000 ha of forest land. The phasing of activities for this component would be determined by progress in training staff in participatory planning; (iii) Extension, Technology and Research programs with provision of necessary infrastructure and facilities for the development of extension and research service centers in each ecological zone, coupled with staff training, providing a base for improved forestry extension services, tree seed improvement programs, demonstration nurseries and adaptive research trials; and (iv) Biodiversity Conservation through improved management of 12 high priority Protected Areas (PAs) by providing support for development of management plans, staff training, equipment and facilities. Special Funds would be created to support the development of alternative resources or income for communities resident within PAs and in areas peripheral to them. A lower level of project funding would be available for 12 lower priority PAs, whilst the identification and planning of linkages to complete the PA Network would be financed. 8. Project Implementation. The organintion of the project would be integrated fully with the coordination and management of the regular program of MPFD, which would be the main implementing agency. A Project Unit within MPFD would be responsible for administration of project finances and procurement, but the Departmental Technical Working Groups would ensure the technical quality of project funded activities. Mechanisms would be established to ensure coordination of project-financed activities with those of other agencies whose programs affect forest land, such as the Tribal Development Authority, and the Departments of Rural Development, Agriculture, and Animal Husbandry. These include a Project Steering Committee that would provide high-level coordination of the project, with Regional and District Committees providing coordination at the field level. NGOs would make a major contribution to the implementation of the VRDP and  4 the Ecodevelopment Program, as many have experience of participatory processes. The collaboration of suitably experienced NGOs would be sought to assist with the orientation and training of MPFD staff and with the implementation of village-level planning and programs. 9. Project Sustainability. The sustainability of the project is dependent on the long-term GOMP commitment to improved management of forest resources. This commitment is evidenced by the GOMP endorsement of the National Forest Policy, and its willingness to make policy and institutional changes to facilitate the implementation of the national policy, and involve the private sector and NGOs in the development of the sector. 10. Lessons from Previous Bank/IDA Involvement. The Bank has supported ten projects in the field of forestry and resource conservation in India, with lending in the amount of US$500 million. Past forestry projects in India mainly supported social forestry and watershed protection activities which have had mixed success. Many of the projects encountered implementation problems causing delay in disbursement and completion due to slow project mobilization, institutional weaknesses and inadequate local funding. More recent forestry projects such as those in West Bengal and Maharashtra were designed to provide more comprehensive support to the forest sector as a wh^le. Based on the earlier experience, both projects provided for improved forest technology, adaptive research, extension, planning and human resource development. In addition, the projects were designed to support the introduction of important policy and institutional reform programs, but implementation of these aspects of the projects has been much slower than expected. The design of the proposed project would take these lessons into account by seeking early agreement with GOMP on: a strategy for the future development of the sector and associated implementation programs; necessary policy and institutional reforms; mechanisms for the improvement of sector management; and appropriate human resource development programs. The findings of the recent World Bank Forest Sector Review in India (Report No. 10965-IN), the OED report on Forestry Development - A review of Bank Experience (Report No. 9524), the Bank's forest policy paper and the strategy for forestry in Asia have also been taken into consideration. I1. Rationale for Bank Involvement. The introduction of a new strategy for the future development of the forestry sector in Madhya Pradesh for the implementation of the National Forestry Policy, and the associated changes in sector management and policies require long-term commitments. The Bank is one of the few institutions that could provide the necessary continuity of support. In addition, the Bank's involvement in similar state forestry projects provides a mechanism for transferring up-to-date practical experience with project implementation. This experience enables the Bank to engage in a constructive dialogue on sector management issues with both state and central governments. The Bank is also in a position to ensure that improved technology will be made available to MPFD in a timely manner, both through its support for the national Forestry Research, Education and Extension Project, and through linkages with international forestry research organizations. The proposed project would be consistent with the Bank's strategy for India, as discussed in the Country Assistance Strategy of May 1994, which seeks to promote increased agricultural productivity through better selection of investments and more efficient public sector management. It is also consistent with the objectives of the Bank's forestry policy and the Asia Region's strategy for lending, which links policy dialogue with major investments in the forest sector.  5 12. Agreed Actions. A strategy for the future development of the forest sector in Madhya Pradesh has been formulated and a statement of policies and actions that will constitute the framework for improving the management of forests in Madhya Pradesh was issued by GOMP prior to negotiations. During negotiations with Gover,ument, the following assurance and agreements were obtained: Conditions of Effecfiveness. Two conditions of effectiveness were agree: (a) All necessary actions for removing restrictions on felling of trees on private land would be taken; (b) A contract, based on Terms of Reference agreed with IDA would be agreed with consultants acceptable to IDA, to assist with the proposed review of the management of the system. Other Assurances. These relate to actions to ensure timely implementation of project activities and amongst others include: (a) The consultancy to assist with the review of the management of the sector would be completed by June 30, 1996, its findings discussed with IDA, and agreed modifications to management procedures and structures introduced not later than June 30, 1997; (b) By December 31 of each year, starting December 31, 1995, a Project Implementation Plan (PIP) would be prepared in consultation with IDA, for the following financial year. However, for the first year of the project, the PIP would be prepared no later than July 31, 1995; (c) A Human Resource Development Plan for MPFD, linked to proposed changes in the management system, would be developed and reviewed with IDA by June 30, 1996. In addition, an annual training plan would be prepared not later than July 31 of each year; (d) Implementation of the VRDP and Ecodevelopment Program would be in accordance with procedures agreed with IDA. Proposals for iunding would be selected in accordance with criteria agreed with IDA. The first three proposals for funding under both programs would be submitted to IDA for approval; (e) By December 31, 1995: the State Forest Research Institute (SFRI) would be established as an autonomous agency with objectives and responsibilities agreed with IDA; the Research Advisory Committee would be reconstituted with a membership as agreed with IDA; research posts at SFRI for a tree improvement specialist and a seed technologist would be filled; and that consultants to assist with the development of a research strategy would be recruited; (f) The objectives and terns of reference for contract research would be agreed with IDA not later than June 30, 1997; (g) The five Conservator Forests (Wildlife) would be appointed no later than September 30, 1995 and the coordinator for wildlife research would be appointed in SFRI no later than December 31, 1995; (h) There would be no involuntary relocation of communities resident within PAs, and any proposals for relocation would be preceded by an independent study to assess the impact of the communities on the conservation of biodiversity. All proposals would be consistent with GOI provisions and would be agreed with IDA in the light of the Bank's OD 4.20 and OD 4.30. In addition, an independent monitoring program established; (i) Areas which impact on PAs would be identified on the basis of criteria agreed with EDA; PA managers would have the responsibility and sufficient staff to undertake ecodevelopment programs in these areas; at least two trained Ecodevelopment Planning Teams would be appointed not later than March 31, 1995; and that responsibilities are defined to avoid duplication of the work of Territorial staff. 13. Poverty Category. Program of Targeted Interventions. The project main beneficiaries, tribal peoples and forest fringe villagers, belong to the poorest sections of society. Tribal development concems are central to the project and are addressed in an integral fashion under the rubric of social  6 impact, participation and equity, rather than as a subsidiary tribal developmcnt plan. The projcct also incorporates specific measures to safeguard the interests of the landless and women, through participation in village committees, employment preference, and gender sensitive monitoring. 14. Environmental Aspects. An environmental review, undertaken during project appraisal, concluded that all project activities would have very low environmental impact potentials and that the project would have beneficial effects on the environment. The project addresses many of the priorities in the India Environmental Action Programme, 1993. Specifically: conservation and sustainable utilization of biodiversity in selected ecosystems, including conservation of endangered plant and animal species and critical habitats; afforestation, based on community participation in forest protection and management in watershed and other areas; wasteland development involving private and commiunity tree planting; and soil and water conservation. Other environmental benefits may include CO2 absorption, river flow regulation, and meso-climatic and other effects. 15. Program Objective Categories. The project would include activities that would benefit triPlal peoples and the poor, including women, as participatory management of forested lands would -esult in an increased availability of Non-Timber Forest Products (NTFP), an important source of income for these groups. Women are the predominant collectors of fodder, fuelwood and NTFPs and would benefit considerably from the project. The proposed Joint Forest Management (JFM) arrangements would significantly enhance the availability of many forest products that are collected to provide for household needs and secondary income. Effective participation of women in JFM arrangements would be critical to ensure sustained management of the resource. The project, therefore, includes a number of mechanisms to ensure the participation of women and the representation of their interests. 16. Participatory Approach. The design of the VRDP is based on experience in over 200 villages in Madhya Pradesh, and many more villages elsewhere in India, of joint forest management and ecodevelopment programs. Both programs are entirely based on community participation in the planning and management of forest lands used by the community. NGO experience of similar participatory programs would be used for training MPFD staff and in implementation. 17. Benefits. The project would increase, directly or indirectly, tfie production of wood, NTFP, and animal products which would benefit the rural poor and improve the supply of wood to forest- based industries. The project would support a program of assisted natural regeneration in about 165,000 ha of forest. About 1,140 village communities, of which a very high percentage would btz tribal peoples, participating in the management of about 75,000 ha of forest would receive direct benefits from the project. The benefits include not only the improved access for communities to forest products, but also the benefits of improved agriculture and alternative income generating activities generated through the Village Resource Development Program and the Ecodevelopment Program. The project would have important benefits in terms of equity as about 18.3 million person- days of employment would be generated, a benefit which would be almost wholly captured by the poorest and landless households. Processors and marketers of wood and NTFPs would also benefit through increased supply of raw material. The direct and quantifiable economic costs and benefits of the project are mainly due to investments in both closed and open forests. The Economic Rate of  7 Rzturn (ERR) for the projcct as a whole, in terms of di' .ct forestry outputs, and excluding the biodiversity and researchi components, is estimated at lI .5 percent. However, this understates project bencfits as significant indirect and environmental benefits have not been included. These are benefits such ns: protection and management in watershed and other areas, including measures to reduce soil erosion and improve moisture conservation; maintenance of biodiversity, including conservation of endangered plant and animal species and critical habitats; and increased productivity of the forest to reduce pressure on the environment. Other environmental benefits inay include CO2 absorption, river flow regulation, and meso-climatic and other effects. These were calculated by means of an environmental premium, associated with each hectare included in the project, to reflect the flow of external benefits, which is estimated to be about US$12 per hectare per year. 18. Risks. The main risks facing the project are: (i) the degree of commitment within GOMP to make the necessary policy and institutional changes that would be necessary for the implementation of the agreed strategy for the sector; (ii) the effective.aess of participatory arrangements for the management of forest resources; (iii) the ability of MPFD to provide the private sector with technological advice, in order to take advantage of a changed policy environment. The first risk is being addressed through agreement on a sectoral strategy with associated policy changes formalized through the issue of necessary Government Orders. In addition, as this four-year project forms the first stage of a planned phased approach to sectoral development, it provides a means for GOMP to demonstrate commitment to change. The project would minimize the second risk through an intensive program of training for staff in the principles and practice of participatory forest management, through building links with NGOs and other government departments involved in village development, and by rigorous monitoring and evaluation of the program. Project support for forest extension programs, research programs targeted on the needs of producers, and the creation of an Industrial Liaison Unit within MPFD would reduce the third type of risk associated with the project. 19. Recommendation. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association, and I recommend that the Executive Directors approve it. Ernest Stern Acting President Attachments Washington, D.C February 28, 1995  Schedule A Page I of I INDUI MADHYA PRADESH FORESTRY PROJECT Estimated Costs and Financing Plan Estimated Costs Component Foreign Local Total FE .... US$ million.......__ Management Development Sector Management 0.8 1.4 2.2 35 Planning, M and E 0.9 2.0 2.9 32 Forest Development Natural Forest Regeneration 1.0 17.9 18.9 S Village Resource Development 1.9 15.5 17.4 11 Extension Technology and Research E and R Service Centers 0.4 2.2 2.6 14 Extension 0.1 0.3 0.4 16 Seed Improvement 0.8 3.1 3.9 20 Nursery Demonstration 0.6 0.8 1.4 23 Adaptive Research 0.2 0.4 0.6 33 Biodiversity Conservation 1.2 8.4 9.6 13 Total Baseline Costs 7.9 52.0 59.9 13 Physical Contingencier 0.6 2.5 3.1 20 Price Contingencies 0.6 3.7 4.3 14 TOTAL PROJECT COSTS 11 9.1 58.2 673 14 I/ Including duties and taxes of US$2.4 million. Financing Plan Source of Financing Foreign Lodcl Total IDA 9.1 48.9 58.0 GOI 1/ 0.0 9.3 9.3 Total 9.1 58.2 67.3 It Including duties and taxes of US$2A 4million  Schedulc B Pnge I of 2 INDIA MADHYA PRADESH FORESTRY PROJECT Procurement Arraingements and Disbursemcntis Amounts and Methods of Procurement Prject Element Procurement Metht.d Total ICB LCB Others Cost ............ US$ Million. Works Bui Idings 1.6 8.0 9.6 (1.4) (6.8) (8.2) Forest Opcrations 20.8 20.8 __ _ __ _ __ _ __ _ _ __ _ __ _ __ _ __ _ __ _ __ _ _ (1 8.8) (18,8) Goods Equipmcnt/Supplies 1.7 0.8 2.6 5.1 (1.6) (0.7) (2.3) (4.6) Maps, Aerial Photographs 0.2 0.2 (0.2) (0.2) Books, Periodicals, extension and 0.7 0.7 publicity materials (0.6) (0.6) Vehi. les 1.8 1.6 3.4 (1.7) (1.4) (3.1) Consultancies, Studies, Training Technical Assistance 1.2 1.2 (1.2) (1.2) Studies and Consultancies 1.2 1.2 (1.2) (1.2) Training 3.3 3.3 (3.3) (3.3) Miscellaneous Forest Protection 14.7 14.7 (1 1.9) (I 11.9) Ecodevelopment Support Fund 2.2 2.2 (1.8) (1.8) Operating Costs 4.6 4.6 (2.8) (2.8) Project Preparation Facility 0.3 0.3 l____ ____ ____ _____ ____ ____ ____ ___(0.3) (0.3) TOTAL 3.5 2.4 61.4 67.3 (3.3) (2.1) (52.6) (58.0) Note. 1. Figures in parentheses are the respective amounts financed by the IDA Credit. 2. Other methods include force account, shopping, engagement of consultants and training.  Schedule B Page 2 of 2 Summary Disbursement Schedule q,?_' Id, lie>' 4 *0 , r, Works Buildings 8.2 100 85 Forest Operations 18.8 100 90 Goods Equipment/Supplies 4.6 100 80 Maps, Aerial Photographs 0.2 100 80 Books, extension and publicity materials 0.6 100 80 Vehicles 3.1 100 80 Consultancies, Studies, Trainir.g Technical Assistance 1.2 100 100 Studies and Consultancies 1.2 100 ;00 Training 3.3 100 100 Miscellaneous Forest Protection 11.9 100 100 Ecodevelopment Support Fund 1.8 100 80 Operating Costs 2.8 100 50 Project 'reparation Facility 0.3 100 80 CTOTAL 58.0 Estimated IDA Disburseiments FY96,R 9W7t1FY?S1 1 Annual 3.9 10.3 14.9 18.7 102 Cumulative 3.9 142 29.1 47.8 58.0  Schedule C Page 1 of 1 INDIA MADHYA PRADESH FORESTRY PROJECT Timetable of Key Processing Events Time taken to prepare: 18 months Project prepared by: Government of Madhya Pradesh with IDA assistance First IDA Mission: October, November, 1993 Appraisal Mission: March, 1994 Negotiations: February, 1995 Planned Date of Effectiveness: July 1, 1995 List of Relevant PPARS and PCRs: None The report is based on the findings of an appraisal mission that visited Madhya Pradesh in March, 1994, with a follow-up mission in June, 1994. The mission comprised I Hill (Mission Leader), P. Guhathakurta (Forestry Specialist), M. Jansen, R. Crooks (Environmental Specialists), G. Morgan (Planning and GIS Specialist), P. Francis (Rural Sociologist), K. N. Venkataraman (Procurement  SCREDULE D PAGE 1 of 4 THE STATUS OF DANK GROUP OPERATIONS IN INDIA A. STATEMENT OF BANK LOANS AND IDA CREDITS (As of December 31, 1994) US4 Million (net of cancellations) Loan? PY of ---------------------------------- Credit # Approval Purpose IBRD 1/ IDA 1/ Undisburaed 2/ 1/ 133 Loans/ 10324.9 194 Credits fully disbursed/cancelled 14070.4 1356-IN 1983 Upper Indravati Hydro Power - 170.00 9.37 SF-12-IN 1984 Tamil Nadu Water Supply - 36.50 2.81 1454-IN 1984 Tamil Nadu Water Supply - 36.50 6.78 2483' IN 1984 Upper Ganga Irrigation - 10S.43 9.55 2582-1N 1985 Xerala Power 126.00 - 43.21 1643-IN 1986 Gujarat lrban - 50.34 17.3S 1621-IN 1986 Maharashtra Composite Irrigation - 128.32 dS.53 1631-rN 1986 National Agricultural Research II - 57.21 12.49 1750-IN 1987 Bombay Water Supply & Sewerage III - 14S.00 60.40 2769-IN 1987 Bombay Water Supply & Sewerage III 20.00 - 20.00 2796-IN 1987 Coal Mining & Quality Improvement 322.78 - 24.47 1751-IN 19S8 Gujarat Rural Roads - 96.75 32.41 2846-rN 1887 Madras Water Supply 53.00 - 22.09 1754-IN 1987 National Agric. Extension IrI - 66.62 10.40 2844-IN 1987 National Capital Power 373.00 - 77.55 1770-IN 1987 National Water Management - 114.00 14.55 2785-IN 1987 Oil India Petroleum 140.00 - 4.29 2845-IN 1987 Talcher Thermal 367.00 - 161.83 1790-IN 1987 Uttar Pradesh Urban Development - 120.95 49.84 1931-IN 1988 Bombay & Madras Population - 57.00 25.54 2928-IN 1988 Indus. Fin. & Tech. Asst. 334.37 - 9.60 2893-IN 1988 National Dairy II 200.00 - 132.27 2935-IN 1988 Railway Modernization III 252.50 - 9.40 1923-IN 1988 Tamil Nadu Urban Dev. - 2S4.73 91.92 3093-IN 1989 Electronics Industry Dev. 8.00 - 7.50 3058-ZN 1989 Export Development 120.00 - 8.92 3096-IN 1989 Maharashtra Power 354.00 - 238.65 3024-IN 1989 Nathpa lhakri Power 485.00 - 378.72 1952-IN 1999 National Seeds rII - 147.24 55.02 2022-IN 1989 National Sericulture - 133.35 63.03 2057-IN 1989 Nat'l. Family Welfare Trng. - 72.76 40.54 3044-IN 1999 Petroleum Transport 50.00 - 9.76 2994-IN 1989 States Roads 115.00 - 79.74 2010-IN 1989 Upper Krishna Irrigation II - 160.00 47,08 3050-IN 1989 Upper Krishna Irrigation IX 45.00 - 45.00 2008-IN 1989 Vocational Training - 163.95 104.87 3196-IN 1990 Cement Industry Restructuring 293.18 - 96.32 2115-IN 1990 Hyderabad Water Supply - 79.90 51.85 2064-IN 1990 Industrial Technology Development - 55.00 45.19 3119-IN 1990 Industrial Technology Development 135.00 - 49.59 3237-IN 1990 Northern Pegion Transmission 495.00 - 440.10 2133-IN 1990 Population Training VII - 63.96 3S.43 3239-IN 1990 Private Power Utilities I (TEC) 98.00 - 21.77 2076-IN 1990 Punjab Irrigation/Drainage - 145.28 107.37 2158-IN 1990 Tamil Nadu Integrated Nutrition II - 67.S2 43.29 2130-IN 1990 Technician Education 1 - 210.74 141.97 2100-IN 1990 Watershed Development (Hills) - 75.00 55.84 2131-IN 1990 Watershed Development IPlains) - 55.00 47.09 3325-IN 1991 Dam Safety 23.00 - 23.00 2241-IN 1991 Dam Safety - 130.00 123.51 3364-IN 1991 Gas Flaring Reduction 450.00 - 21.49 2173-IN 1991 IZDS I (Orissa & Andhra Pradesh) - 74.35 50.91 3334-IN 1991 Industrial Pollution Control 124.00 - 59.84 2252-IN 1991 Industrial Pollution Control - 31.60 31.81 2234-IN 1991 Maharashtra Rural Water Supply - 109.90 86.97 3259-ZN 1991 Petrochemicals II 12.00 - 10.24 3259-IN 1991 Petrochemicals II 203.00 - 111.95 3344-IN 1991 Private Power Utilities 11 (USES) 200.00 - 50.30 2215-IN 1991 Tamil Nadu Agricultural Development - 92.80 61.64  SCHEDUlE D PAGS 2 of 4 US$ Million (net of cancellations) Loan/ FY of Credit P Approval Purpose IBRD IDA I/ Undisbursed 21 3300-EN 1991 Tamil Nadu Agricultural Developrent 20.00 - 20.00 2223-EN 1991 Technician Education II - 255.73 214.72 2300-IN 1992 Child Survival and Safe Motherhood - 214.50 137.35 2394-EN 1992 Family Welfare (Urban Slums) - 79.00 79.62 2328-EN 1992 Maharashtra Forestry - 124.00 113.96 2350-EN 1992 National AIDS Control - 84.00 68.26 3436-EN 1992 Power Utilities Efficiency 265.00 - 249.61 3498-EN 1992 Second Maharashtra Power 350.00 - 313.70 3470-EN 1992 Second National Highway 153.00 - 153.00 2365-EN 1992 Second National Highway - 153.00 155.97 2329-EN 1992 Shrimp and Fish Culture - 85.00 85.49 2341-EN 1992 West Bengal Forestry - 34.00 24.68 2433-EN 1993 Agricultural Development Rajasthan - 106.00 93.92 2439-EN 1993 Bihar Plateau Development - 117.00 108.20 2450-EN 1993 Jharia Mine Fire Control - 12.00 11.95 2483-EN 1993 Karnataka Rural Water Supply - 92.00 90.43 2528-EN 1993 National Leprosy Elimination - 85.00 83.83 3632-EN 1993 NTPC Power Generation 400.00 - 400.00 3630-EN 1993 Power Finance Corporation 20.00 - 20.00 3577-EN 1993 Powergrid System Development 350.00 - 323.13 3544-EN 1993 Renewable Resources Development 75.00 - 8.84 2449-EN 1993 Renewable Resources Development - 115.00 115.15 2409-EN 1993 Rubber - 92.00 88.79 2470-IN 1993 Second Integrated Child Dev. - 194.00 195.42 2509-EN 1993 Uttar Pradesh Basic Education - 165.00 154.81 2510-IN 1993 Uttar Pradesh Sodic Lands Reclam. - 54.70 53.36 2572-EN 1994 Forestry Research Education - 47.00 45.84 2573-IN 1994 Andhra Pradesh Forestry - 77.40 76.46 2592-IN 1994 Water Resources Consolidation (Haryana) - 258.00 263.36 2594-EN 1994 Maharashtra Emergency Earthquake - 246.00 229.77 2611-EN 1994 Blindness Control * - 117.80 123.60 2630-EN 1994 Population IX (Family Welfare) - 88.60 87.88 3753-IN 1994 Container Transport Logistics * 94.00 - 94.00 3779-IN 1995 Industrial Pollution Prevention * 93.00 - 93.00 3780-IN 1995 Industrial Pollution Prevention * 50.00 - 50.00 2645-IN 1995 Industrial Pollution Prevention * - 25.00 25.65 2661-IN 1995 District Primary Education * - 260.30 260.81 2663-IN 1995 A.P. District Heatlb * - 133.00 131.42 Total 17583.70 20693.55 8628.93 of which has been repaid 4925.6 1272.6 12658.09 19420.95 Total now outstanding Amount Sold 133.8 of which has been repaid 133.8 Total now held by Bank and IDA Total undisbursed (excluding ) 3644.9 3934.3 1/ IDA Credit amounts for SDR-denominated Credits are expressed in terms of their US dollar equivalents, as established at the time of Credit negotiations and as subsequently presented to the Board. 2/ Utndisbursed amounts for SDR-denominated IDA Credits are derived as the undisbursed balance expressed in SDR equivalents (in turn derived as the difference between the original principal expressed in SDRs (based on the exchange rate as established at the time of Credit negotiations) and the cumulative disbursements converted to SDR equivalents at the exchange rates prevailing at the respective dates of disbursements less cancellations expressed in SDR equivalents converted to US dollar equivalents at the SDR/US dollar exchange rate in effect on December 31, 1994. * Not yet effective. Source: Statement of Loans & Credits (LOALA) of December 31, 1994.  SCHEDULE D PAGE 3 OF 4 S. STATEMENT OF IFC INVESTMENTS (as of December 31, 1994) Amount (USS million) Piscal Year Company Loan Equity Total 1939 Republic Forge Company Ltd. 1.50 -- 1.50 1959 Kirloekar Oil Engines Ltd. 0.9S -- 0.85 1960 Assam Sillimanite Ltd. 1.36 -- 1.36 1961 x.S.-. Pumps Ltd. 0.21 -- 0.21 1963-66 Precision Bearings India Ltd. 0.65 0.38 1.03 1964 Fort Gloster Industries Ltd. 0.91 0.40 1.21 1964 Lakshmi Machine Works Ltd. 0.96 0.35 1.31 1964-75-79/90 Mahindra Ugine Steel Co. Ltd. 11.91 2.66 14.47 1967 Indian Explosives Ltd. 8.60 2.86 11.46 1967 Jayshree ChemicaLs Ltd. 1.05 0.L0 1.15 1969-70 Zuari Agro-Chemnicals Ltd. 15.15 3.76 19.91 1977-87 Escorts Limited 15.55 -- 15.55 1978-87/91/93 Housing Development Finance Corp. 106.32 4.05 110.37 1990/82/87/89 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 Nagariuma 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 Malhindra & Mahindra Ltd. 29.71 9.68 39.39 1982 Asbok Leyland Limited 28.00 -- 28.00 1982 Coromandel Fertilizers Limited 15.89 -- 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 1995 Modi Cement 13.05 -- 13.05 1985-96/90-91-94 India Lease Development Ltd. 8.50 1.08 9.58 1985(91 Bihar Sponge 15.24 0.68 15.92 1986 Eajaj 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 1986-97-88-92-93 The Great Eastern Shipping Company Ltd. 41.25 13.89 55.14 1986-87-91 Export-Import Bank of India 14.34 -- 14.34 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 1997 Wimco Limited 4.70 -- 4.70 1997/99-90/92/93 Titan Watches Limited 22.02 1.15 23.17 1988/94 Invel Transmissions Ltd. -- 1.40 1.40 1999 Ahmedabad Electricity Company, Ltd. 2D.93 -- 20.83 1989 WTI Advanced Technology -- 0.20 0.20 1989-90 Keltron Telephone Instruments, Ltd. -- 0.56 0.56 1999-92 Gujarat State Fertilizer 40.46 -- 40.46 1989-95 JSB India Securities Firms 2.39 0.37 2.76 1990 U3CAL Fuel Systems Ltd. -- 0.63 0.63 1990-91/94 Tata Electric 111.9B 18.75 130.63 1991 ATIC Industries Export Finance 0.28 -- 0.28 1991 Bonibay Electric 68.00 -- 68.00 1991 CESC Ltd. 83.63 -- 83.63 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 25.95 1991-93-95 Infrastructure Leasing & Financial Services 40.00 4.92 44.92 1991 TDICI Development Finance Caopanies -- 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  SCHErULE D PAGE 4 OF 4 Amount (USO million) Fiscal Year Company Loan Equity Total 1991 INDUS VC MGMT -- 0.01 0.01 1991 Block KG-OS-rV -- 0.20 6.20 1991 INCUs 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 -- 11.60 1992-94 Creditcapital VF -- 1.11 1.11 1993 NICCO-UCO 3.00 0.25 3.26 1993 20th CSNTURY 16.00 0.80 16.80 1993 Info Tech Pund -- 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 9.94 44.84 1994 Centurion Growth -- 2.39 2.39 1994 TCANC -- 0.16 0.16 1994 DLF Ceemnt 39.36 -- 39.36 1994 Global Trust Commercial Banks -- 3.19 3.19 1994 Chowgule -- 4.58 4.58 1994 centurion Bank -- 3.87 3.97 1994 GESCO Transport & Communications -- 2.15 2.15 1994 ISIC Brokerage -- 0.32 0.32 1994-95 Prism Cement 30.00 5.01 35.01 TOTAL GROSS COM EN?T4MS 1361.61 217.14 1578.75 Less: Cancellation, Terminations, Exchange Adjustments, Repayments, Writeoffs and Sales 753 .71 84.82 838.54 Total Commitments Now Held by IFC 607.85 132.30 740.16 *-_,........ ........ ... ._._... undisbursed 73.93 9.39 83.32 _ __ . :....; ._7 __...7" Total Outstanding 533.94 122.92 656.86 Source: IFC Statement of Investments am of Deceaner 31, 1994.  MAP SECTION  IBRD 26171 T. Ag. N U LITTAR PRADESH INDIA RAJASTHAN -. T \4np', r, MADHYA PRADESH FORESTRY PROJECT (j STATE CAPITAL 0 SELECTED TOWNS -MAIN ROADS - TAT! BOUNDARIES 6w RIVERS BIHAR.ELEVATIONS IN METERS: * 000 m 4,d! RI Resomir~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ T. Lh~~~~~~~~~~~~~~OM, KAR!'(ATAKA'.~~~Na