Announcement of Highlights of the World Bank Group's Activities for India in Fiscal 1974 on September 23, 1974

~~H Lb FOR RELEASE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPl\fENT ASSOOIATJfON 18 18 H ST R E ET, N W WASHINGTON D.C.20433 TELE?HUNE. EXECUTIVE 3-6360 For Publication Monday, September 23, 1974 IN D I A HIGHLIGHTS OF THE WORLD BANK GROUP'S ACTIVITIES IN FISCAL 1974 BANK/IDA COMMIT $442 MILLION TO ASSIST KEY SECTORS OF THE INDIAN ECONOMY India received a· total of $442 million from the World Bank Group during the fiscal year ended June 30, 1974, according to the Annual Report of the World Bank and its atiiliate, the International Development Association (IDA), released • here today. As in previous years, India was the largest single recipient of the Group's conunitments during fiscal 1974. The bulk of the financing from the Bank Group to India during the year ($390 million) has come from IDA. The Association's credits to date have been for 50 years, free of interest, but carry a service charge of 3/4 of 1%. The year's commitments brought the cumulative tctal of Bank and IDA lending to India to $4,031 million -- $1,228 million from the Bank and $2,803 million from IDA. The range of the Group's activities in India was expanded to include dairy and urban development. An IDA credit of $30 million is financing a dairy development project in Karnataka (formerly Mysore). Another credit of $35 mil- lion is financing a pro.1ect in support of the Calcutta Metropolitan Development Authority's program to rehabilitate and improve basic urban facilities in a • metropolitan area of almost nine 'million people. /more Note: Money figures are expressed in US dollar equivalents.  - 2 - • The year's lending has sought to spread the benefits of economic development to a larger number of the poor. In Karnataka, for instance, about 450,000 farming households, or about 2~5 million people will benefit from the dairy development project. In Bihar, the incomes of about 100,000 farmers are expected to increase· substantially as a result of an IDA-financed project to expand institutional credit. A brief description of Bank/IDA operations in India during fiscal 1974 follows: Agricultural Credit in Bihar: The IDA credit of $32 million is supporting a three-year lending program for investments in minor irrigation, tubewells and pump sets to farmet's in the State. Incomes of about 100,000 farmers are expected to increase substantially as a result of the project. In addition, the project • will generate year-round employment for almost 45,000 persons • A_2ple ProcesGing and Marketing .in Himachal Pradesh: The IDA cr~dit of $13 mil- lion is assisting a $21.7 million project to improve apple processing facilities and to assist an integrated apple-marketing system. About 10,000 small farmers are expect~d to increase their incomes. Dairy Development in Kamat aka (Mysore): The IDA credit of $30 million represents the first Bank Group operation in support of dairy development in India. The project se;eks to contribute to an annual production increase of one million tons of milk. About 2.5 million people, most of whom are either land- less or own less than five acres will benefit. Clambal Command Area Development in Rajasthan State: The Bank loan of $52 million will finance improvements to an existing irrigation project. The project will help to increase 20,000 jobs over the next decade and to increase • foodgrain production from 140,000 tons to 350,000 tons. More than half of the farmers in the project area are within the lowest 40% ori India's national income scale. /more  - 3 - • Urban Development -- Calcutta; The ~35 million IDA credit is helping to finance 44 schemes covering water supply, sewerage and drainage, roads and traffic improvements, environmental hygiene, garbage disposal, and housing. The credit supports the Calcutta Metropolitan Development Authority's Program for the rehabilitation and improvement of basic urban facilities. Indian Railways; The $80 million credit is supporting the expansion of the railways during the Fifth Five-Year Plan period (1974-79). The $654 million project will help to replace steam locomotives with di~sel or electric ones. The wagon fleet will be increased, and electrification of main lines will be furthered. Industrial Imports: The credit of $150 million will enable 800 medium· and large-scale enterprises in selected priority industries to maintain and expand • production. The credit will meet part of the industries' foreign exchange requirements of about $550 million during 19 74/75 for imports of raw materials, components and spare parts. 'nle credit brings the total of IDA assistance for industrial imports in India to $930 million. Fertilizer -- Trombay: Almost two-thirds of the IDA credit of $50 million will go toward expanding the capacity of the Trombay fertilizer plant, located near Bombay. The remaining funds will provide India. with u~gently needed assistance to improve operations in other Government-owned fertilizer plants. The credit marks the sixth Bank Group fertilizer project in India. /mere •  - 4 - •• BANK GROUP ACfIVITIES IN FISCAL 1974 -- THE GLOBAL PICTURE For the sixth consecutive year, the World BAnk Group has approved a record total of development assistance to the poorer nations of the world. The figure of $4,517 million for the., fiscal year 1974, was $962 million higher than in the pre'?-ous years. The World Bank's borrowings also reached a record -- of $1,853 million. Over 30% of this amount came from oil-exporting nations. Compared with fiscal 1973, the Bank's lending rose by almost $1,200 mil- lion to $3,218.4 million. As had been expected, IDA committed virtually all the resources available to it by the end of the year. Its commitments totaling $1,095.2 million, were $250 million less than in fiscal 1973. The International Finance Corporation, the Bank's other affiliate, made • investments totaling $203.4 million. The Regi1:mal Picture -- Asia With loans and credits totaling $1,361.8 million, Asia was the principal regional recip,ient of Bank/IDA assistance. Bank and IDA lending went to 12 Asian countries -- Bangladesh, Burma, India, Indonesia, Korea, Malaysia, Nepal, Pakistan, Papua New Guinea, the Philippines, Singapore and Thailand. - 0 - •