India - Tamil Nadu Nutrition Project

Document of Aft! The World Bank FULE vur FOR OFFICIAL USE ONLY Report No. P-2753-IN REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO INDIA FOR THE TAMIL NADU NUTRITION PROJECT March 27, 1980 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 (as of March 21, 1980) Rs 1.00 = Paise 100 US$1.00 = Rs 8.168215 Rs 1.00 = US$0.12242 Rs 1,000,000 US$122,420 (Since September 24, 1975, the Rupee has been fixed against a "basket" of currencies. As these currencies are now floating, the U.S. Dollar/Rupee exchange rate is subject to change. Con- versions in the Staff Appraisal Report were made at US$1.00 to Rs 8.40, which represents the projected exchange rate over the disbursement period). FISCAL YEAR April 1 - March 31 ABBREVIATIONS AND ACRONYMS USED IN THIS REPORT ANM - Auxiliary Nurse-Midwife CARE - Cooperative for American Relief Everywhere CNC - Community Nutrition Center CNW - Community Nutrition Worker GDP - Gross Domestic Product GOI - Government of India GOTN - Government of Tamil Nadu HSi - Health Sub-Center km - square kilometer MPHW - Multi-Purpose Health Worker NRR - Net Reproduction Rate PHC - Primary Health Center POJx - Petroleum Rs - Rupees TNNS - Tamil Nadu Nutrition Study UbAID - United States Agency for International Development  FOR OFFICIAL USE ONLY INDIA TAMIL NADU NUTRITION PROJECT Credit and Project Summary Borrower: india, acting by its President. Beneficiaries: The State of Tamil Nadu. Amount: US$32 million equivalent. Relending Terms: From GOI to Tamil Nadu as part of Central Assistance to State development projects on terms and conditions applicable at the time. Project Description: The project would support: (i) a system of nutrition surveillance for children aged 6-36 months in six Districts of Tamil Nadu; (ii) a selective program of food supplementation to counter or avert energy-protein malnutrition in children in the target group as well as pregnant and nursing women, combined with a supple- mentation program to protect against Vitamin A deficiency and iron deficiency anemia; (iii) an expansion in the scope and coverage of rural health services in the project area, with particular attention to improved maternal and child health care; (iv) combined mass media and face-to- face communications efforts to improve food habits and child care practices among the target population; and (v) studies, surveys and analysis of the impact of project activities and their relationship to other nutrition and health programs in the State. Estimated Project (US$ Millions) Costs: Local Foreign Total Nutrition Delivery Services 20.6 1.4 22.0 Rural Health Services 15.5 4.5 20.0 Nutrition Communications 2.9 - 2.9 Monitoring and Evaluation 1.0 - 1.0 Project Coordination 1.0 0.1 1.1 Base Cost 41.0 6.0 47.0 Physical Contingencies 2.2 0.6 2.8 Price Contingencies 14.5 2.1 16.6 Total Project Cost 57.7 8.7 66.4 Taxes and Duties 1.9 - 1.9 Project Cost Net of Taxes and Duties 55.8 8.7 64.5 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contenst may not otherwise be disclosed without World Bank authorization.  Financing Plan: 1/ (US$ Millions) Local Foreign Total IDA 23.3 8.7 32.0 GOI/GOTN 32.5 - 32.5 Total 55.8 8.7 64.5 Estimated (US$ Millions) Disbursements: FY81 FY82 FY83 FY84 FY85 Annual 2.9 3.9 5.7 8.5 11.0 Cumulative 2.9 6.8 12.5 21.0 32.0 Rate of Return: Not applicable. Appraisal Report: No. 2762-IN, dated March 27, 1980. 1/ Net of taxes and duties.  INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE GOVERNMENT OF INDIA FOR THE TAMIL NADU NUTRITION PROJECT 1. I submit the following report and recommendation on a proposed development credit to India for the equivalent of US$32.0 million on standard IDA terms to help finance a US$66.4 million project to strengthen the nutrition intervention and rural health systems in six Districts of the State of Tamil Nadu. The proceeds of this credit would be channelled to the Government of Tamil Nadu in accordance with the Government of India's standard terms and arrangements for financing State development projects. PART I - THE ECONOMY 1/ 2. An economic report, "Economic Situation and Prospects of India" (2431-IN dated April 9, 1979), was distributed to the Executive Directors on April 13, 1979. Country data sheets are attached as Annex I. Background 3. India is a large, low-income country with 652 million people (in mid-1979) whose average income is US$150 per annum. The agricultural sector dominates the economy, employing over two-thirds of the labor force and con- tributing over 40% of value added. Although smallholder agriculture provides a fullsome subsistence to many, the land base is inadequate to provide all families in rural areas with an adequate livelihood under current conditions, and many who are landless or nearly landless have only an insecure grasp on the means of existence. Industrialization in India has not been rapid enough to bring about the economic transformation that has led to higher productivity and rapid urbanization in some other countries. The urban population was 18% of the total in 1960, 20% in 1970 and is 21% now. The share of manufacturing has grown slowly and since the late 1960s has remained roughly constant at 16% of GDP. 4. Economic growth has been slow in the past, with GDP growing at a trend rate of 3.6% per annum from 1950 to 1975. Agricultural output grew at 2.4% per annum over the same period. Slow growth in agriculture acted as a drag on overall growth, not only because of its sheer weight in the total, but also because of the need to use scarce foreign exchange to import food. Growth in industrial output has been higher at 5.2% per annum between 1950 and 1975, but not as high as in many other developing countries nor as high as can be expected. 5. This slow growth has persisted despite a quite creditable domestic saving and investment performance. Domestic saving has grown from 9% of GDP 1/ Parts I and II of the report are substantially the same as Parts I and II of the President's Report for the Uttar Pradesh Public Tubewells Project (Report No. P-2746-IN), dated March 20, 1980.  -2- in 1951 to the currenit high level of 22%. Gross domestic investment has risen from 10% to 21% of GDP over the same period. Fore-ig&n savings have never financed a large portion of domestic investment and have financed no more than 5% of investment since 1970. Foreign savings have been important in financing imports, and a shortage oif foreign exchange has acted as a constraint on the economy for most of the period. External assistancE, has been low both as a percentage of GDP and in per capita terms. Net external assistance is less than 2% of GDP now, has never risen above 3% and fell to less than 1% in the early 1970s. Exports have grown relatively slowly---5.4% per annum in US dollar terms and 2.8% per annum in volume terms between 1950/51 and 1975/76. So far during the i970s, exports have grown much more rapidly, by 18% per annum in US dollar terms and 8% in volume terms over the period 1970/71 to 1976/77. During the same period imports grew by 17% per annum in US dollar terms but only by 2% per annum in volume terms, reflecting a 28% fall in India's terms of trade over the period. 6. India has the capacity to grow and develop at a more rapid pace than has been achieved so far. Although the industrial sector is small compared to the size of the total economy, it nevertheless has a highly diversified struc- ture and is capable of manufacturing a wide variety of consumer and capital goods. Basic infrastructure--irrigation, railways, telecommunications, roads and ports--is extensive compared to many countries, although considerable gaps remain. India is rich in human resources and institutional infrastruc- ture, although there is much scope for improvement. India is reasonably well-supplied with natural resources, not only land and water but minerals, including oil, gas and coal. With good economic policies and sufficient access to foreign savings, India should be able to manage these considerable resources to accelerate the longer-term growth trend. Recent Trends 7. India has managed faster growth during the recent past. Growth of GDP in 1978/79 is estimated to be between 3% and 4%; this is a strong perform- ance coming on top of the previous year's 7.2% growth in GDP and considering agricultural output grew less than 2%. Even this agricultural growth is highly creditaTble given the previous years' record harvests in most crops. .ndustrial output grelw by 8-10% in 1978/79. Over thie four years, 1975/76 to 1978/79, growth in real GDP, agricultural output and industrial output has averaged 5.3%, 4D4% and 6.9% per annum, respectively. Although these rates represent growth over the depressed base of the early 1970s, they are signi- ficantly higher han -The longer-term past trend and comparable to the target growth rates for the medium-term future. Buoyant domestic demand, stagnating output and world innflation have led to significant increases in prices during the first half o-r the 1979/80 fiscal year. The wholesale price index for September 1979 was 18,4% above that or the previous September. Together, the rise in the pmr-ces oz food products3 crude petroleurn and mineral oils accounted for over two-thE--- 5 the increase in the index. However, prices of almost all comoditie- M-roi U'D _p : ni-'ficantly over this period as reflected in the 9.6% increase- -i - - -rce s of the residual commodities. Government attempts to regulate ttle -l ice or co=mnodities like sugar and edible oils, cllinrgs on o. -ent of some interest rates and the seasonal downturn the fruit ard vg:esa ices after summer helped the wholesale price rinex to level o--f aft-er September. However, if allowance is made for the seasonal facto-fc -ri'e are sCilI risirng at approximately an 18% annual rate.  -3- The Indian economy will no doubt continue to face inflationary pressure during the 1980/81 fiscal year. Its intensity will to a large extent depend on the developments in world inflation, especially the rise in oil prices and India's success in alleviating the supply bottlenecks that emerged during 1979. Although the current inflationary pressures need not seriously impair medium- term growth prospects, given available aggregate resources and production capacity, significant improvements are likely to be required in the organ- ization of key sectors if an economic slowdown is to be avoided. 8. The 1978/79 foodgrain crop exceeded the 1977/78 record crop of 126 million tons, and many non-food crops did well. The 1978 monsoon rains were timely and adequate, although severe flooding in some areas destroyed both lives and property and ruined some crops. The basic inputs into agricul- tural production continued their rapid growth of the recent past. Additions to area under irrigation have doubled from 1.3 million hectares a year during the five-year period ending 1973/74 to 2.6 million hectares a year during 1977/78 and 1978/79. Fertilizer consumption in 1978/79 reached 5 million nutrient tons, an increase of 18% over 1977/78. This growth has been impres- sive, particularly since it followed two successive years of very high growth-- 18% in 1976/77 and 26% in 1977/78--so that fertilizer consumption in 1978/79 was 75% higher than in 1975/76. However, prospects for agricultural produc- tion in 1979/80 are not good. India experienced a severe drought in 1979. The monsoon was delayed and subsequent rainfall was deficient throughout the country. Consequent damage to the kharif crop has been substantial. Tenta- tive estimates indicate a shortfall of 13-15 million tons in kharif crop from last year's level of 78.7 million tons. Delayed sowing, lack of soil moisture, low levels of water in tanks and wells as well as power cutbacks and recent shortages in diesel fuel for irrigation pumps are adversely affecting the rabi crop. Depending on the performance of the rabi crop, total shortfall in grain crop is expected to be 17-20 million tons below the 1978/79 level. 9. The growth of industrial output in 1978/79 came from a sharp rise in the output of food industries, particularly sugar, a modest increase in textiles, important increases in the hitherto depressed engineering sector and the revival of demand for consumer durables. Production would have been still higher but for recurring shortages of steel, coal, railway wagons and electric power and capacity constraints in fertilizer, cement, vegetable oils and petroleum products. Labor unrest also constrained output in some indus- tries, particularly in textiles, steel and mining; man-days lost in 1978 ex- ceeded the high level of 1977 and only in 1974 were the number of days lost higher. Power production increased by 12% but continuing shortages in many States necessitated power cuts and curbs on new demand. During the first half of 1979/80 supply bottlenecks in basic industrial inputs began to retard overall industrial production. In addition to coal and steel, cement, sugar, cotton textile and cotton yarn output fell below last year's levels. Strong demand has continued to sustain other important industries such as fertilizers and chemicals, but it appears increasingly unlikely that these can counter- balance the constrained sectors. 10. The trade deficit grew and both the current account surplus and the balance of payments surplus of recent years shrank in 1978/79. The import bill is expected to reach US$8.4 billion, which brings the average rate of increase in US dollar terms to 19% per annum since 1976/77. Non-foodgrain imports rose even more dramatically by 28% per annum over the past two years. The growth  -4- of imports and the liberalization of import control policies represents a desirable adjustment to enhanced foreign resources. Although exports grew much faster during the 1970s through 1976/77 than earlier, export growth in 1977/78 and 1978/79 has slowed somewhat. After rising by 12% in 1975/76 and 23% in 1976/77 in US dollar terms (virtually all growth in export volume), export earnings rose by only 9% in 1977/78 (with little or no volume growth) and an estimated 8% in 1978/79 (with 5-8% volume growth). Although part of the decline is attributable to unfavorable coniditions in foreign markets, export profitability has been allowed to deteriorate somewhat. With net invisible receipts in 1978/79 estimated the same as in 1977/78--US$2 billion-- the widened trade deficit resulted in a significantly reduced current account surplus, from US$1 billion in 1977/78 to US$400 million in 1978/79. Despite some increase in net aid disbursements from their low level in 1977/78, the increase in reserves declined from about US$2 billion in 1977/78 to about US$1.5 billion in 1978/79 to reach US$7.4 billion. Exports during the first three months of this fiscal year are 32% higher than the same quarter of last year. Although part of the increase is due to the dollar depreciation and recovery in coffee prices, the prospects of sustaining a volume growth of at least 7% during 1979/80 appear good. Imports in the first quarter of 1979/80 are around 7% higher than the same period of the previous year. However, the impact of recent increases in petroleum prices are only partially reflected in this figure. India's total POL import bill for 1979/80 is likely to reach $3.2 billion, $800 million higher than earlier estimates. As a result, there should be a sharp deceleration in the rate of growth of reserves sufficient to significantly reduce the number of months of imports covered by reserves during 1980. Development Prospects 11. The faster growth of the recent past has been made possible by the much-increased inward flow of foreign exchange from increased exports, workers' remittances and external assistance; greatly improved agricultural performance; the impressive saving effort; the liberalization of import controls; and ex- panded public expenditure on development programs. Although sustaining the high growth rates of the recent past in the medium-term is by no means assured, especially if there is a repeated drought in 1980, India has a level of re- sources with which to manage the economy that had not existed before. The comfortable foreign exchange position, and the large foodgrain stocks have greatly eased the pressures to deal with short-term crises and freed India's economic managers to continue planning a more ambitious course for the economy. The policy improvements needed to achieve the better performance now possible have begun in some important areas but in others have yet to be initiated. 12. The Draft Plan, which was released in March 1978 and is expected to be finalized and approved by the National Development Council later this year, sets out India's development strategy for the five years 1978/79 to 1982/83. The principal objectives of the Draft Plarn are to achieve within a period of ten years: (i) the removal of unemploymtent and significant underemployment, (ii) an appreciable rise in the standard of living of the poorest sections of the population, and (iii) provision by the Government of some of the basic needs of the people in these low-income groups. While the Plan recognizes the importance of achieving more rapid expansion of the economy than in the past to meet the employment and welfare objectives, the targeted rate of growth at 4.7% per annum is lower than projected in most earlier Plans.  According to the planners, this reflects in part the increased emphasis given to the distribution rather than the level of income generation, and in part the need for greater realism in the macro-economic assumptions underlying the Plan. While the trade-off between growth and distribution is not immediately obvious from the Plan model, the adoption of a more realistic growth target is in itself wel- justified -- even at 4.7% per annum, the targeted growth rate is higher than actually achieved during any of the previous Plan periods, and is substantially above the longer-term trend growth rate. 13. In agriculture, despite the 1979 drought, economic policies, dev- elopment programs and secular trends all seem favorable for resuming a period of sustained high growth after 1979/80. Fertilizer prices have been reduced progressively from their very high level in early 1975 and despite some fall in market foodgrain prices, the fertilizer: foodgrain price ratio has fallen to a clearly profitable range. Good harvests and higher farm incomes provide the money to finance higher fertilizer purchases, creating something of a virtuous circle. Pricing policies for many crops--rice, wheat, sugarcane, pulses and others--have concentrated recently on supporting prices to maintain incentives to farmers rather than trying to administratively control prices to contain inflation. The ambitious irrigation and rural electrification investment program in the new Five-Year Plan, if fully funded, will help pro- vide the water control needed to increase yields directly and to induce further productivity-increasing investments. The effective reorganization of the agricultural extension service will raise yields as it takes hold gradually across India. Finally, there are several heartening trends in foodgrain pro- duction: one is the steady growth of area planted to high-yielding varieties of rice; another is the growing adoption of summer rice cultivation in the traditional wheat-producing areas (Punjab and Haryana). These two trends along with the other favorable developments have caused rice production to rise impressively in the last two years. Another good omen for foodgrain production is the rapid growth of winter wheat cropping in traditional rice areas (West Bengal, Assam and Orissa). 14. In industry, despite some uncertainty in industrial policy and the lack of strong policy stimulus to improve efficiency in the industrial structure, recently strengthened demand forces, increase in planned invest- ment along with adroit input supply management should allow the industrial sector to continue to grow at the improved rate of the recent past, at least for the near- and medium-term future. Over the longer term, growth of indus- trial production at or above the rate experienced in the recent past--e.g., 7% per annum during the last four years--will require some changes in policy to induce a more efficient industrial structure. Recent industrial policies have sent mixed signals to private manufacturers and investors. Some, such as reserving certain lines of production for small-scale enterprises or prohibit- ing the location of new firms in municipal areas, have been restrictive. Others have been stimulative, such as the raising of the exemption limit of industrial licensing for capital investment or favorable adjustments in the pricing and production controls in several major industries, including cement, steel, and textiles. In addition the liberalization of import controls is of considerable benefit to increasing industrial production. However, there are some worrisome supply shortages that are currently threatening continued rapid industrial growth. Many can be handled through imports, if needed, as long  - 6 - as India maintains a healthy foreign exchange posjition. However, two supply constraints likely to persist in the future -- namely, rail transport and power -- cannot be eased through imports. The new Plan contains a major power investment program to increase capacity rapidly. The railway investment pro- gram is more modest. Another crucial input into both of these sectors, and into most other major sectors, is coal, whose supply needs careful management. 15. The main reason for expecting sustained growth in industrial pro- duction is improvement in demand prospects for each of the four major sources of industrial demand. The first is market demand for manufactured consumption goods, which is expected to pick up in response to the increase in disposable income due in particular to improvement in agricultural output. Although its effect has been delayed somewhat, this broad-based demand is finally making itself felt and is expected to continue into the future unless the growth in agricultural output is constrained by repeated droughts. Another source of demand is public expenditure on development projects, which has grown in a major way in the last few years and is scheduled to continue to grow under the new Five-Year Plan. A third source of growth is export demand for indus- trial goods. There has been a sustained growth in the export of manufactures such as engineering goods, garments, gems, finished leather and some chemical products. This export growth should continue in the future with proper policy support. A final source of growing demand is private investment by both the household and corporate sectors. There are as yet only a few signs of this growth, such as increased disbursement by term lending institutions and in- creased use of inputs; investments should become stronger as growth in the other sources of demand continues and as capacity limitations begin to con- strain production in more industries. The net result of increasing demand should be continued high growth in industrial production in the near and medium term within existing policies. 16. Import policy is an area where there has been significant improve- ment in the recent past; but some improvement in export policy is required to raise incentives to export. India has liberalized import control policy significantly in the past: two years and imports have responded. Future growth in imports, and in the benefits of price stability, enhanced production and increased efficiency which imports bring, will depend to a great extent on how the now liberalized policy is administered. A delicate touch is required to yield the benefits without bringing about undesirable damage to vulnerable industries. India has the foreign resources to allow imports to grow at the rapid rates of the past two years for a few more years and continue to relax the very severe restraints imposed on the economy during the early 1970s by suppression of imports. But, given the import liberalization undertaken so far and the expected growth of imports, by the end of the Plan period (1982/ 83), foreign exchange reserves will have fallen to six months of imports, or less, and some adjustment in the balance of payments will be required. Part of the adjustment will very likely be a reduction in the growth rate of imports; the import bill need not grow 15% in volume terms indefinitely to sustain the target growth in GDP. Part of the adjustment must come from the achievement of a growth rate of exports in the vicinity of 7-8% or higher in volume terms. Faster export growth is needed not only to provide the foreign exchange to sustain the rapid growth in imports but also to allow foreign demand and competition to improve the efficiency of Indian industry. Finally,  -7- part of the adjustment should come from an increased net transfer of external assistance. 17. India's population policy continues to aim at reducing the Lirth rate to 30 births per thousand people by 1983 through completely voluntary acceptance of fertility control methods supplied by a family w..fare system integrated with the supply of basic health, maternal and child health and nutrition services. Since 1977, the family planning achievements in terms of number of acceptors have been below that needed to achieve the 1983 goal or even to keep the birth rate from rising above its current level. The low performance is primarily the result of the reaction to the harsh birth control policies introduced during 1976. Since then family planning performance has been gradually returning to the rising trend which was discernible before it was disrupted by the intensive drive of 1976/77. Given continued support for the program of family welfare, Bank estimates indicate that India's rate of population increase should remain below 2% per annum and fall to 1.5% by about the year 2000. Despite the declining trend in the rate of population increase, a net reproduction rate (NRR) equal to one (replacement level) would only be achieved around the year 2020. At this time, the total population is estimated to reach 1.2 billion persons, an increase of about 84% over the mid-1979 level of 652 million. 18. In addition to stimulating overall economic growth and constraining population growth, reduction of poverty in India requires special attention to ways of raising the income and productivity of low-income groups. More than one-third of the world's poor live in India and more than 80% of the Indian poor belong to the rural households of landless laborers and small farmers. The prospects for alleviating their poverty by providing these families with more land are not good because of the virtual absence of uncultivated arable land, the slow progress in implementing land reform and the limited amount of land that would be available if land reform were carried out. Estimates of the amount of land that would be available if land reform were carried out vary greatly. One estimate is that there would be about 9 million hectares avail- able for distribution. This compares to roughly 45 million families in the two poorest groups in rural India: landless families and families owning less than one hectare of land, whose average holding is 0.31 hectares. An approach to the amelioration of poverty more promising than land reform is the creation of more employment opportunities for the landless and small farmers in rural areas. Although the basic thrust must come from the market by a more rapidly increasing agricultural output, there will be a role for employment-intensive rural works programs. The new Plan provides for increased rural employment both through direct employment schemes and through ambitious programs of investment in rural infrastructure in addition to the more general rural development programs. PART II - BANK GROUP OPERATIONS IN INDIA 19. Since 1949, the Bank Group has made 57 loans and 118 development credits to India totalling US$2,529 million and US$7,263 million (both net of cancellation), respectively. Of these amounts, US$1,044 million had been  -8- repaid, and US$3,186 million was still undisbursed. as of January 31, 1980. Annex II contains a summary statement of disbursements as of January 31, 1980, and notes on the execution of ongoing projects. 20. Since 1959, IFC has made 18 commitments in India totalling US$72.6 million, of which US$17.4 million has been repaid, US$7.6 million sold and US$6.9 million cancelled. Of the balance of US$32.5 million, US$24.5 mil- lion represents loans and US$8.0 million equity. A summary statement of IFC operations as of January 31, 1980, is also included in Annex II (page 5). 21. In recent years, the emphasis of Bank Group lending has been on agriculture. The Bank Group has been particularly active in supporting minor irrigation and other on-farm investments through agricultural credit opera- tions. Major irrigation, marketing, seed development, and dairying are other agricultural activities supported by the Bank Group. Also, the Bank Group has been active in financing the expansion of output: in the fertilizer sector and, through its sizeable assistance to development finance institutions, in a wide range of geographically scattered medium- and small-scale industrial enterprises. IDA financing of industrial raw materials and components for selected priority sectors has been instrumental in facilitating better capacity utilization in industry. The Bank Group has also been active in supporting infrastructure development for power, telecommunications, and railways. Family planning, water supply development, and urban investments have also received Bank Group support in recent years. 22. The direction of assistance under the Bank/IDA program has been consistent with India's needs and the Government's priorities. The emphasis of the program on agriculture, industry, power, urban development and water supply remains highly relevant. Projects designed to foster agricultural production through the provision of essential inputs such as credit for on-farm investments, improved water management and intensification and stream- lining of extension systems, form an important aspect of the Bank Group's program for the next several years. Special emphasis will be given to proj- ects benefitting small farmers. Projects supporting water supply, sewerage, and urban development also form an integral part of the Bank's lending strategy to India for the next several years. Lending in support of infra- structure and industrial investments will focus on agriculture-, export- and energy-related projects. 23. The need for a substantial net transfer of external resources in support of the development of India's economy has been a recurrent theme of Bank economic reports and of the discussions within the India Consortium. Thanks in large part to the response of the aid community, India has success- fully adjusted to the changed world price situation. However, the basic need for foreign assistance, to augment domestic resources, stimulate investment and accelerate economic growth, remains. As in the past, Bank Group assist- ance for projects in India should include, as appropriate, the financing of local expenditures. India imports relatively few capital goods because of the capacity and competitiveness of the domestic capital goods industry. Con- sequently, the foreign exchange component tends to be small in most projects. This is particularly the case in such high-priority sectors as agriculture, irrigation, rural water supply and medium- and small-scale industry.  - 9 J 24. Although the growth prospects of the economy have improved, India's poverty and needs are such that as much as possible of India's external capi- tal requirements should be provided on concessionary terms. Accordingly, the bulk of the Bank Group assistance to India has been, and should continue to be, provided from IDA. However, the amount of IDA funds that can reasonably be allocated. Io India remains small in relation to India's needs for external support, and India may be regarded as creditworthy for some supplemental Bank lending. The ratio of India's debt service to the level of exports was 12% in 1978/79 and is projected to remain below 20% through 1995/96. As of January 31, 1980, outstanding loans to India held by the Bank totaled US$1,525 million, of which US$600 million remained to be disbursed, leaving a net amount outstanding of US$925 million. 25. Of the external assistance received by India, the proportion con- tributed by the Bank Group has grown significantly. In 1969/70, the Bank Group accounted for 34% of total commitments, 13% of gross disbursements, and 12% of net disbursements as compared with an estimated 62%, 27% and 38%, respectively, in 1978/79. On March 31, 1979, India's outstanding and dis- bursed external public debt was US$15.3 billion, of which the Bank Group's share was US$4.6 billion or 30% (IDA's US$4.0 billion and IBRD's US$0.6 bil- lion). Because Bank Group assistance to India is predominantly in the form of IDA credits, debt service to the Bank Group will rise slowly. In 1978/79, about 17.5% of India's total debt service payments were to the Bank Group. PART III - NUTRITION AND HEALTH IN TAMIL NADU 26. The State of Tamil Nadu is located in southeast rn India, facing the Bay of Bengal. Covering an area of nearly 130,000 km , Tamil Nadu had a population estimated at 46.8 million in early 1979, approximately 7.4% of the estimated total population of India, making it the third most densely populated State in the country. Estimated average annual per capita income in Tamil Nadu over the period 1973/74-1975/76 was approximately US$118 equiv- alent (roughly equal to the all-India mean per capita income), which placed Tamil Nadu ninth in rank by per capita income among India's States. Nutrition in Tamil Nadu 27. Despite its middle-range ranking in per capita income among the States of India, estimates of per capita daily calorie intake in Tamil Nadu place it fifteenth among the sixteen major States ranked by the National Sample Survey. Estimated per capita calorie consumption in Tamil Nadu for 1973/74 was 2,036, compared to the national average of 2,263 and recommended daily consumption of 2,400. Rural per capita calorie consumption in Tamil Nadu was estimated at 2,012 for the same period, against a national average of 2,328. The situation in urban areas was somewhat better, with per capita daily calorie intake estimated at 2,092 in Tamil Nadu relative to a national average of 2,003. 28. The State's low nutritional status relative to per capita income and the existence of somewhat more serious nutritional deficiencies in rural  - 10 - as opposed to urban areas (which runs counter to the national pattern) seem to be largely attributable to heavy population pressures in relation to cultivable land and to substantial income inequalities. Approximately 50% of the agricultural labor force in Tamil Nadu is landless, one of the highest- proportions in India. Moreover, of existing landholdings, close to 60% are less than one 'nectare in size. As a result of these and other factors, an average of 58% of the rural population was estimated to be below the absolute poverty level over the period 1957/58-1973/74, compared to an all-India average of 50%. Finally, the State has an overall unemployment rate of 19%, the highest of India's States, and a very high level of rural, seasonal unemployment- 29. The Tamil Nadu Nutrition Study (TNNS), conducted in 1970-73 under the auaspices of the Central and State Governments and USAID, confirmed that calorie-protein malnutrition in the State is widespread and often severe, particularly among pre-school children and pregnant and nursing women. It esticmatad that nearly half of the families in rural Tamil Nadu consume less tha.n 80% of their ca'lorie needs. Moreover, according to TNNS estimates, malnourishment was a leading or associated cause of approximately 75% of the deaths of children under l hree years of age in Tami'L Nadu, the age group which in turn accounts for approximately 90% of all pre-school child mortality in the State. This study, aLong with a number of others conducted in the State, also identified a number of specific nutritional deficiencies prevalent in Tamil Nadu, among them a high degree of Vitamin A deficiency (which can lead to inparrn.nt of vision or even blindness) among pre-school children, as well as anemia among pregnant and nursing women, caused by iron and folate acid derficiency a 30. The principal policy-relevant conclusions of the Tamil Nadu Nutri- tion Study were that: (i) the highest-priority target group for nutrition intervention is the group of weaning children under three years of age; (ii) pregnant and nursing women constitute the second highest priority group, view of relationsh. p their nutritional status bears to the health and o-rowth of infrts ( while protein deficiencies are in evidence, the most pressir.g nee' arnong t'ne mainourished is for increased calorie consumption; and (iv) f-a'- l ood habits (e.g., intra-family food distribution and cha- racteristics of -'ood oriered weaning children) are major determinants of the -s pr --school children in Tamil Nadu, where nutritional. s - E <ie s -7-aiOcofLl during weaning across all family income levels. ____ t ,4utrition-Related Programs in the State 31 'h ovalof Tamil Nadu has long been concerned with nutrition --ecss; for dealing with these problems consists of continuing I _; - p-rocuction, reduce income inequality and increase e-lce 1 -- ^ r-' more immediate programs to directly address health nl C I .s le longer-term development efforts take hold. Si 3 C c - rodc-,_cticin program has already produced positive results. ?--r se-a _ v = ie~--s are among the highest in India due to widespread adop- .ing var,eties. Tamil Nadu ranks second only to Punjab in a - ': n- 'f..-' OI fertilizer, and has exploited approximately 75% of ----:s 11 . i- Over the course of the current Five-Year Plan the ` o-,Oks t continued advances in agricultural productivity,  - 11 - animal husbandry, and labor-intensive rural public works programs to increase employment and raise incomes in rural areas. 32. Tdhile continuing its investments in these long-term development efforts, the State Government has also initiated a number of programs to deal directly and immediately with childhood malnutrition. Tamil N- lu currently spends approximately US$8.8 million per year on approximately 25 nutrition programs, most of which involve regular food supplements to beneficiaries. 1/ Chief among these is a mid-day meal program, operated by the Education Depart- ment, which provides school lunches for 200 days each year to approximately two million school-age children. A number of other smaller localized programs provide food supplements to pre-school children and mothers, mainly in child- care centers spread throughout urban and rural Tamil Nadu. 33. The State Government has recognized, however, that the network of nutrition programs in the State suffers from a number of deficiencies. First of all, these programs now reach an estimated maximum of 10% of the total population of children under six and a smaller proportion of pregnant and lactating women in the State, thus falling significantly short of serving the proportion of these groups showing serious nutritional deficiencies. Second, most of the existing programs have failed to reach significant numbers of children under three years of age, the group considered to be at greatest nutritional risk. In cases where children under three are served, they are typically provided an inappropriate food supplement which is too coarse and bulky for young children to consume. Third, weaknesses in designing and adher- ing to appropriate nutritional criteria for selecting beneficiaries reduce the ability of these programs to serve those at highest nutritional risk. Fourth, once enrolled in a food supplement program, children are generally fed for 200-300 days per year until they reach the upper bound of the eligible age group for a given program, without regard to the fact that they may have "graduated' to a satisfactory nutritional status. (In fact, studies have shown that 90-120 days of properly-formulated nutritional supplementation is gener- ally adequate to restore a malnourished child to a normal weight gain pattern.) This prolonged feeding period renders the existing programs very expensive per child served and limits their suitability for replication throughout the State. Fifth, meals provided under these long-term public feeding programs, while intended to supplement the food a child or pregnant or nursing woman would normally receive at home, are often substituted for food taken at home, resulting in little incremental food intake. And finally, most of these programs have accomplished little by way of altering family food habits, which would be required to adequately protect both direct beneficiaries as well as other children in the family. As the Tamil Nadu Nutrition Study pointed out, the greatest hope for early, sustained improvements in nutrition among pre- school children in Tamil Nadu lies in success in improving family food habits, which now perpetuate malnutrition in weaning children at all income levels. 1/ The State Government's nutrition expenditures are supplemented by contri- butions from the Central Government, which finances purchased inputs required to supplement donated CARE foodstuffs as well as processing costs for food supplements.  Tamil Nadu's Health Service System 34. Health care at the village a^{ b lck l leve/ -n Taml.n Nadu is cur- rently provided by a network of mate or.-s4 responsible for relatively autonomous, single-purpose programs. sucil as - zation and cotroll Of indi- vidual communicable diseases, complemented by a network of female auxiliary- nurse midwives (ANMs), who conrentrate -o.Dn care, Male health workers (summing across all functions) are denlOved at a raJo of approximately 1/5,000 population. ANMs, on the other hand, typically serve a popu'ation of approx- imatelv 10,000, spread ovar an area ranging from 36 to 50 kx . Both male health workers and ANMs work out of H-lealth Sub-Centers (HSCs), which serve an average population of 10,000 2/ each and may refer patients to more fully equipped and staffed Primary Health Centers (PHCs) at the block level. 35. One of the primary deficiencies of this system has proven to be the inability of the ANEls to provide adequate maternal and child health care to the populations they are intended to serve. This is due to the magnitude and geographical spread of the populations to which they are assigned, combined with inadequacies in training, supervision, mobility and supply of medicines. The inadequacy of existing maternal and child health care inhibits, among other things, the control of infectious diseases and diarrhea, which exacer- bate nutritional problems among infants and young children. With the inten- tion of improving the coherence, efficiency and coverage of health care in the State, and in particular the quality of maternal anci child health care, the Government of Tamil Nadu has decided to alter the health care structure by introducing a system of male and female multipurpose health workers, in general accordance with the suggested all-India patt:ern now being implemented in a number of other States. Existing male single--purpose health workers are being retrained to provide a comprehensive range of: services to an area covering a population of approximately 5,000 each. Existing ANMs will also be retrained to provide better maternal and child health care, in addition to obstetrical care, and would be assigned, along with their male counterparts, to serve a population of n1o more than 5,000 each. I:n order to accomplish the proposed reduction irn the population to be served by each female health worker, a substantial number of new female health wTorkers will be recruited and trained. Finally, the number of Health Sub-Centers in rural Tamil Nadu will be increased significantly, with the objective of providing one HSC per 5,000 population (as agairist the current ratio of 1/10,000). The State Government plans to introduce these changes in a phesed manner, beginning in the areas to be served under the proposed project, both because of staff constraints and to permit operational refinements based on experience in project areas. 36. This revised primary health care system differs from the pattern adopted in a number of Incia's States in that it does not include a part-time I/ A block is an administrative subdivision of a District which covers approximately 100,000 people. 2/ HSCs and ANMs in the project area typically serve a population of 12,500 -- significantly higher than the all-State average.  - 13 - community health worker at the village level. The Government of Tamil Nadu has chosen to test a number of alternatives to the community health worker concept adopted elsewhere. Chief among these is the alterntive the State would implement through the proposed project, which is based on the combined use of multi-purpose health workers and village-based community nutrition workers (see rqra 41 below). These community nutrition workers, although trained and supervised by the Social Welfare Department, would coordinate their activities closely with health personnel, and are seen by the State Government as a critical support to the multi-purpose health worker structure. The State Government views this service network as a particularly promising way of providing functionally integrated village nutrition and health care while preserving the administrative responsibility of the Department of Social Welfare for delivery of nutrition services, in accordance with national policy. A second approach involves the deployment of PHC-based mobile medical teams, each headed by a physician, which visit villages on a regular schedule. Evaluation of this program, which operates in 28 of the State's 373 blocks, is being carried out by the National Institute of Health and Family Welfare and is nearing completion. A third approach to be tested, now getting underway on a limited scale, involves matching grants to voluntary agencies willing to assist communities in organizing and operating their own health centers, each staffed by a part-time physician and paraprofessionals. The effectiveness of the combined network of multi-purpose health workers and community nutrition workers supported by the proposed project in providing adequate and well- coordinated village-level health and nutrition services will be kept under continual review throughout the project period. Should evaluation reveal service gaps at the village level, adjustments to the complementary health and nutrition service systems will be made in consultation with IDA, taking into account experience gained with the other service alternatives being tested elsewhere in the State and with adequate safeguards taken to protect the efficiency, quality, and level of nutrition and health services in the project area and to prevent duplication of services at the village level (Sections 2.08 and 2.09, Project Agreement). Bank Group Activities in Tamil Nadu 37. While this is the first project aimed directly at nutrition and health in Tamil Nadu, a number of Bank Group activities have benefitted the State. Among these are Loan 199-IN for the Port of Madras, Credit 250-IN for agricultural credit, Credit 687-IN for urban development in Madras (the capital of Tamil Nadu), and Credit 720-IN for the Periyar Vaigai Irrigation Project. The Madras Urban Development Project includes a maternal and child health care component which, on the completion of the required civil works, will operate, on a small-scale and in an urban environment, services similar to those to be introduced in rural areas under the proposed project. PART IV - THE PROJECT 38. The proposed project was appraised by a mission which visited India in August 1979. A report entitled the "Appraisal of the Tamil Nadu Nutrition Project (No. 2762-IN, dated March 27, 1980) is being distributed separately to the Executive Directors. Negotiations were held in Washington in February 1980. The Government of India and the Government of Tamil Nadu  - 14 - were represented by a delegation coordinated by Mr. B.S. Lamba, Deputy Sec- retary, Department of Eccnomic Affairs, Government of India (GOI). Project Description 39. The proposed project is designed primarily to improve the nutrition and health status of children and pregnant and nursing women in rural areas of six Districts of the State of Tamil Nadu. It would seek to accomplish this by introducing a cost-effective, replicable system of nutrition surveillance, nutrition education, and food, vitamin, and mineral supplementation, and by supporting the reorganization of the health care system in these Districts to improve the efficiency and coverage of rural health services, with particular emphasis on improving the system of maternal and child health care and the prevention and treatment of nutrition-related diseases. The program of nutrition surveillance and food supplementation for children would concentrate on children between 6 and 36 months of age, the most vulnerable age group, would provide supplements only as long as required for a child to achieve adequate nutritional recovery, and would be accompanied by intensive nutrition education of key family members designed to encourage adoption of affordable home feeding practices which would ensure the child's continued nutritional well-being. The specific quantitative objectives of the Government of Tamil Nadu (GOTN) are (i) to reduce by 50% over the project period the incidence of protein-energy malnutrition among children under three years of age in the project area; (ii) to achieve a 25% reduction in project areas in both the infant mortality rate, now estimated by GOTN at 125 per 1,000, and the child- hood mortality rate, now estimated at 28 per 1,000 for children between one and four years of age; (iii) to reduce to 5% the currently estimated 27% incidence of Vitamin A deficiency in children under five years of age; and (iv) to reduce to 20% the currently estimated 55% incidence of nutritional anemia in pregnant and nursing women. 40. The project would be implemented in the rural areas of six Districts of the State considered to have among the most serious nutritional problems -- Chengalpattu, Madurai, North Arcot, Pudukottai, Ramanathapuram, and Tirunelveli. Services offered under the project would be phased in gradually over a period of five years on a block-by-block basis. A formal review of project imple- mentation would take place at the end of one year's operation of the service program in one pilot block, and again at the end of the third year, after initiation of the service program in approximately 70 blocks, to guide further project implementation and indicate any changes required in system design. 41. The project wou:Ld consist of the four components outlined below. (a) Nutrition Delivery Services. (Estimated Cost: 1/ US$22.0 million). This component would support the establishment, supply, and operation of approzimately 9,000 Community Nutrition Centers (CNCs) at a ratio of approxi- macely one CNC/1,500 population, the average size of: a village in Tamil Nadu. CNCs Jould oe established in existing buildings rented by the Department of Social W elfrae and would be staffed by one full-time female Community Nutri- Worie-' and one helper each, both recruited fromi the village they would 1,J Net of contLingencies.  - 15 - serve. Community Nutrition Workers would receive two months' initial training and would attend semi-monthly in-service training sessions. Each Community Nutrition Worker would monitor the nutritional status of children aged 6-36 months in her village 1/; provide on-site, short-term food supplements, produced under the project, to eligible children and pregnant and nursing women at highest nutritional risk; distribute vitamin and min-ral supplements to combat specific nutrient deficiencies, deworming medicaticZs, and prep- arations to combat dehydration resulting from diarrhea; organize talks and demonstrations for village women to promote better weaning and child-feeding practices and to discuss other nutrition-related topics; and maintain village health and nutrition records. She would be supervised by a nutrition super- visor from the Department of Social Welfare (one supervisor per 10 Community Nutrition Workers), who would oversee the selection of children for the food supplement program and ensure an adequate supply of deworming and diarrhea medication and vitamin, mineral and food supplements. Food supplementation would be provided for an initial period of 90 days to children selected on the basis of criteria satisfactory to the Asso- ciation (Section 2.15, Project Agreement). Most children are expected to be discharged from the supplementation program after this initial feeding period. Those who fail to gain sufficient weight would be referred to the nearest Primary Health Center for examination (as their failure to gain weight might indicate serious health disorders) and would continue in the program in 30 day increments, up to a maximum of six months of continued supplementation. This ceiling on the supplementation period is considered essential to ensure that only those children who can benefit from the supplement receive it and that families do not use the supplement as a long-term substitute for home-feeding. Children who exit from the supplementation program will continue to be moni- tored and will be re-entered in the program in the event of relapse. A relapse rate of 20% has been estimated on the basis of experience gained elsewhere with comparable food supplementation/nutrition education/health programs. (b) Rural Health Services. (Estimated Cost: US$20.0 million). This component would support the introduction of the multi-purpose health worker (MPHW) system (see para 35 above) in project areas. It would finance the con- struction and equipping of approximately 1,600 Health Sub-Centers, as well as facilities for re-training existing ANMs to function as female MPHWs, for training newly-recruited female MPHWs, for training additional health super- visors required for the proper operation of the new system, and for providing in-service training to public health doctors and nurses to orient them to the new health service system and assure sustained quality of service. 2/ It would also provide equipment and supplies for MPHWs and vehicles for use by field staff and supervisory personnel and would finance the incremental staff and operating costs incurred in the establishment of the MPHW system. Finally, the component would support the establishment of a small food quality control 1/ Through monthly weighings and application of criteria based on rate of weight gain and/or a combination of anthropometric measures. 2/ The State Government would use existing training facilities and instruc- tors to retrain existing male health workers in order to prepare them to carry out their expanded duties under the MPHW system.  - 16 - laboratory in the Health Department to monitor the quality of the food supple- ments produced and distributed under the project-supported nutrition program. (c) Nutrition and Health Communications. (Estimated Cost: US$2.9 million). The primary focus of this component would be the developmenL and distribution of printed materials, radio advertisements, short films (for screening through the State's extensive network of rural cinemas), and folk dramas designed to encourage families to adopt a limited number of specific practices to improve the nutritional status of young children. These would include timely introduction of semi-solid foods to supplement breast milk, feeding instead of withho-Lding food from sick children, increasing the home food ration to children under three, and home rehydration of children with diarrhea -- all practices considered to be feasible within existing family income and food availabil-ity constraints, as they could be accomplished by small shifts in intra-fami.ly food distribution. The component would also support the preparation of pre- and in-service trairning materials for nutrition and health workers and educational materials to be used by nutrition and health personnel in their contacts with the communities they serve. (d) Monitoring and Evaluation. (Estimated Cost: US$991,000). Monitor- ing of project activities would be carried out by each executing agency and coordinated by a monitoring unit in the Project Coordination Office (see paras 42 and 43 below). Performance monitoring would measure the pace and cost of project-supported activities and focus on the identification of bottlenecks and their causes and determination of suitable steps to correct service defi- ciencies. Evaluation of the impact of the project on beneficiary groups would be the responsibility of a special unit within the Directorate of Evaluation and Applied Research of the Finance Department (GOTNI), which would carry out base-line and annual follow-up sample surveys of the nutrition and health status of target groups, periodic reviews of the appropriateness of training for nutrition and health workers, and special monitoring and evaluation studies relating to the efficiency, costs and impact of project-supported activities, including comparison of these activities to those supported through other State-financed nutrition programs. The evaluation unit would also undertake major reviews of project operations, costs and outcomes after introduction of the proposed nutrition and health service systems in a test block (during the first year of project implementation), after introduction of the nutrition and health systems in about 70 of the 170 project blocks (after the third year of project implementation), and at the end of the final year of the project implementation period. The initial, mid-term, and final evaluations would be conducted under terms of reference satisfactory to the Association. The initial and mid-term reviews would take into account, inter alia, the results of the on-going evaluation of the State's mobile medical team system as well as experience with other approaches to providing village-based health services, and would be used as a basis for any adjustments to the design or implement- ation schedule of the project deemed necessary by the State Government and IDA (Sections 2.08 and 2.16, Project Agreement). Project Implementation 42. Implementation of the project would be monitored and coordinated at the State level by a Project Coordination Office in the State Government  - 17 - Secretariat. The professional staff of this office would consist of a project coordinator, a joint coordinator for the nutrition communications program, a monitoring officer, a senior accounts officer, an administrative officer, and two computer programmers. Vehicles, equipment, and staff and operating costs for this office would be financed under the project. The project coordinator would report irectly to the Secretary, Social Welfare (who has been designate Chief Project Coordinator) and would also act as Member-Secretary of an inter-departmental project oversight committee to be chaired by the Chief Secretary (GOTN) and composed of the Secretaries of the State Government Departments responsible for project execution or related State Government programs. In addition to these two State-level coordinating authorities, inter-departmental project committees would be established at the block and District levels to monitor project progress and ensure inter-agency coordination. 43. The Project Coordination Office would review annual and quarterly budgets and work programs for all project Districts and executing agencies to ensure their consistency with project schedules and operational criteria. It would receive monthly monitoring reports from executing agencies and pre- pare consolidated monitoring summaries. It would also administer a managemeni fund of approximately US$500,000 equivalent, which would be used to test pro- posed innovations in project design. Expenditures out of this fund would be approved by the high-level project oversight committee (see para 41 above) and, in the case of expenditures over US$50,000 equivalent, by the Associatioi (Section 2.14, Project Agreement). 44. The nutrition services component would be administered by the Department of Social Welfare (GOTN), which would train and deploy Community Nutrition Workers (CNWs) and their supervisors at the block, taluk, District, and State level. 1/ CNWs would be contract workers (as opposed to permanent staff) within the Department of Social Welfare, as the Government hopes over time to encourage communities themselves to take increasing financial and operational responsibility for delivery of village nutrition services. While the State intends to continue to finance equipment and food costs, it is hope( that village councils or other groups would ultimately provide premises for CNCs and salaries (or volunteers) for CNW posts. Implementation of the healtl service component would be the responsibility of the State Department of Health and Family Welfare, which would operate Health Offices at the division and District level to coordinate training and supervision of the expanded health service staff, in addition to the Primary Health Centers and Health Sub-Centers in each block. Because of complementarities in their roles, effective coordination arrangements have been worked out for MPHWs, CNWs and their supervisors. These include clearly defined job descriptions, joint MPHW-CNW training sessions and monthly interdepartmental meetings at the bloc' level which would involve both health and nutrition supervisors and managemen staff. These linkages also would be reflected in curricula for training health and nutrition workers, which would be prepared, for review by the 1/ A District is composed of two to three divisions, each of which in turn contains approximately three taluks, composed of approximately three blocks each.  - 18 - Association, by August 31, 1980 (Section 2.11, Project Agreement). In ad- dition, a Deputy Director of Health for Training would be appointed at the State level (by August 31, 1980) to oversee the substantial health training program to be operated under the project (Section 2.13, Project Agreement). Construction of Health Sub-Centers and training facilities would be managed by the State Public Works Department and the Department: of Highways and Rural Works, in accordance with schedules to be agreed with the Department of Health. The nutrition and health communications cormponent, which would serve both the Health and SociaL Welfare Departments, would be executed by a special Nutrition Communications lJnit, directed by the Joint: Coordinator for Nutrition Communications in the Project Coordination Office. Once field operations begin, a District Communications Officer would be posted in each project District to coordinate field operations. Monitoring and evaluation would be carried out by each executing agency and by the Project Coordination Office and the State Department of Finance, as described in para 41 above. In addition, an Evaluation Advisory Panel, to consist of State and Central Government representatives and representatives of relevant research insti- tutions and to be established by December 31, 1980, would meet as necessary throughout the project period to review and advise on project evaluation activities (Section 2.10, Project Agreement). Project Costs and Financing 45. The total cost of the project is estimated at US$66.4 million equiv- alent, of which US$8.7 miLlion, or 13% of project cost, represents foreign exchange costs. Physical contingencies of 10% have been applied to civil works, furniture, equipment, drugs and supplies, training and food supplement costs. Price contingencies have been applied at a rate of 10% for 1981, 7% per year for 1982-83 and 5% per year thereafter, and amount to 25% of total project cost. 46. The proposed credit of US$32 million would finance approximately 50% of project cost net of taxes and duties, which are estimated at US$1.9 million, and would cover all foreign exchange costs. The balance of the funds for the project would come from State Government sources. In order to encour- age prompt initiation of the training and service programs, and to facilitate project evaluation, retroactive financing of up to US$300,000 would be pro- vided for approved expend:itures made after September 1, 1979 on curriculum development, baseline surveys of the target population, advance operation of the service delivery program in one test block, and project management. Procurement and Disbursement 47. Civil works contracts (totalling US$9.0 million) 1/ would be small and dispersed, both geographically and over time, and would therefore not be suitable for international competitive bidding. Contracts would be awarded on the basis of local competitive bidding in accordaince with the State's normal procedures, which are acceptable to the Association. The State Public Works Department and the Department of Highways and Rural Works would be 1/ All figures in this paragraph are net of contingencies.  - 19 - responsible for civil works procurement and construction supervision and would delegate the authority to award construction contracts to their staff at the block level, in order to expedite construction of project-financed works. Approximately 111 motor vehicles, 212 motorcycles, and 3,200 bicycles (totalling US$1.4 million) would be required under the project. They would be purchased in small quantities over five years. In the inte-st of ensuring adequate maintenance and spare parts supply, all motor vehicles and motorcycles would be procured by local competitive bidding under existing government procedures. Bicycles would be purchased mainly by individual field staff with loan funds provided by the Government of Tamil Nadu. Orders for purchase of equipment, drugs, supplies, and furniture (totalling US$10.6 million), which would be small individually and procured at intervals throughout the project period, 1/ would be bulked wherever possible and placed in accordance with established local bidding procedures, except where valued at less than US$50,000, when they would be purchased by prudent shopping through normal trade channels. In order to streamline the State Government's procedures for selecting, ordering, and distributing drugs and medicines, a study of these procedures will be carried out by June 30, 1981, under terms of reference satisfactory to the Association, with the objective of identifying any adjust- ments deemed necessary (Section 2.12, Project Agreement). Contracts for the design and preparation of mass media (e.g., radio and film) campaigns, for data processing, and for technical assistance (totalling US$2.4 million), where suppliers are limited and quality and experience differentials of particular importance, would also be awarded on the basis of prudent shopping. However, all contracts for such services over US$100,000 equivalent would be subject to IDA review prior to award. The remainder of project costs (US$43.0 million) consist of local training (US$2.8 million), incremental staff and operating costs (US$14.2 million), costs of food supplements (US$6 million), the Project Management Fund (US$0.5 million) and contingencies (US$19.5 million). 48. The proceeds of the credit would be disbursed against 80% of the costs of civil works, vehicles, equipment, furniture, drugs and supplies, technical assistance, training, contract services, and expenditures from the Project Management Fund. Disbursements against expenditures for civil works payments not exceeding Rs 300,000, for payments for vehicles, equipment, contract services, drugs and supplies not exceeding Rs 150,000, and for training would be made on the basis of certificates of expenditure. These certificates of expenditure would be audited semi-annually and the audit reports submitted to IDA. Additional supporting documentation for these expenditures would be retained by the State Government for inspection in the course of project review missions. Disbursements against expenditures for all other items would be fully documented. Benefits and Risks 49. The primary benefits of the proposed project would be to demonstrate a cost-effective and replicable system of nutrition and health intervention in Tamil Nadu and to improve the nutrition and health status of the population 1/ Periodic procurement is particularly critical in the case of drugs and medications (totalling US$4.2 million), which have limited shelf life.  - 20 - of project areas, with particular impact on children under three and pregnant and nursing women. The nutrition surveillance system established under the project would cover approximately 780,000 children under three years of age during the life of the project. Direct food supplements would be provided to an estimated 711,000 children, at a significantly iLower food cost than would be incurred were these beneficiaries to be fed accord:ing to the pattern estab- lished under existing long-term feeding programs. This would be accomplished by combining a relatively short-term feeding program (90-120 days), which would restore most children to satisfactory weight--gain levels, with intensive nutrition education designed to teach families how to sustain, within their own budgetary constraints, adequate nutritional levels for young children. Pre- and post-natal food supplements would also be provided, under this program, to approximately 275,000 women at high risk of giving birth to low-weight infants. The health component would improve the availability and quality of basic health services for approximately ten million people, includ- ing an estimated 1.25 mi:Llion women and children inadequately served by the existing health system. The expected combined effect of the health and nutrition programs would be a 25% reduction in infant and pre-school mortality rates in the project area, prevention or reversal of approximately 570,000 cases of moderate to severe malnutrition among children under three years of age in the project area, and substantial overall reductions in morbidity, particularly among young children during the most critical period of mental and physical development. 50. The project faces the fundamental risk that the determinants of malnutrition may be so complex that even effective implementation of the project as designed would not produce the anticipated results. However, the project has been designed on the basis of extensive research in Tamil Nadu and elsewhere, takes into account the most relevant experience available, and, if properly implemented, is expected to have pronounced effect. With respect to actual implementation, as opposed to design, the project faces five basic risks: (i) the difficulty of maintaining adequate service coordination and quality control and still adhering to the implementation schedules associated with the expanded training and service programs supported by the project; (ii) the risk that separate administrative controls for nutrition annd health delivery may hamper proper coordination of village nutrition and health services; (iii) the possibility that social pressure may make it difficult to enter and discharge children from the supplementation program in accordance with project criteria; (iv) the possibility that participation in the food supplement program may be lower than expected, given the ostensibly modest size of the daily supplement (which would be in snack rather than meal form to ensure continued home-feeding) and the short duration of the supplement period; and (v) the possibility that changes in intra-family food distribution will occur later than anticipated, which would lead to a higher than expected rate of relapse among children who have completed an initial course of nutri- tion supplementation. An extensive system for performance monitoring has been designed into the project to help guard against cumulative lags in project implementation and oversee the quality of project-supported services. More- over, project-supported training and monitoring and evaluation programs will stress coordination between nutrition and health workers and the service programs for which they are responsible. Final decisions on which children will enter or exit from the supplementation program have been put in the hands  - 21 - of the Community Nutrition Workers' supervisors rather than the workers themselves, in order to ensure that pressures from co-villagers will not replace nutritional criteria in determining which children receive food supplements. The intensive nutrition surveillance program supported by the project, combined with nutrition education efforts, should act to offset the risk of low ra !s of participation in the supplementary feeding program. The fifth risk, that of slower than expected changes in family food habits, is somewhat more difficult to guard against, although it could have potentially serious ramifications in terms of project cost, replicability, and long-run impact. It is felt, however, that the estimated relapse rates (20%) assumed in calculating project costs are reasonable, given the combined program of mass media campaigns and small group nutrition education to be conducted under the project and the potentially far-reaching impact of even marginal changes in patterns of childhood feeding and intra-family food distribution. PART V - LEGAL INSTRUMENTS AND AUTHORITY 51. The draft Development Credit Agreement between India and the Association, the draft Project Agreement between the Association and the State of Tamil Nadu, and the Recommendations of the Committee provided for in Article V, Section l(d) of the Articles of Association are being distributed to the Executive Directors separately. 52. Special conditions of the Project are listed in Section III of Annex III. 53. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association. PART VI - RECOMMENDATION 54. I recommend that the Executive Directors approve the proposed credit. Robert S. McNamara President March 27, 1980  I I I  ANNEX I INDIA - SOCIL I DICATORS DATA SHZET Page 1 of 5 REFU5CE GROCPS (ADJUSTTZD AYPAGES LAND AREA (THOUSAND SQ. EM.) - MOST RECENT ESZSIMAE) TOTAL 3287.6 SAME SAKE 11Zr HIGUER ASCULTUR L 1818.3 MOST lECEZT GEOGRAIIIC INCOME LNCOMe 1960 l 1970 A ESTSIATE b REGION GR1OUP d GROUP a GNP PU APlITA tOSS) 60.0 90.0 180.0 191.1 209.6 467.5 EmGT CONS5KPTION P1E CAPITA (KILOGRAKS OF COAL ECIVALENT) 142.0 181.0 213.0 69.1 83.9 262.1 POPTION AND VITAL STATISTICS F0IRAXIO. aD-TE& (MILLIONS) 434.9 547.6 631. 7f 018 POPULAnION (PZRCUT OP TOTL) 17.9 19.7 20.7 13.2 16.2 24.6 POPULATION PROJECTIONS POPULAIIOU IN YEAR 2000 (MILl;ONS) 973.0 STATIONARY POPULATION (MILLIONS) 1643.0 TZAR STATIONXAY POPULATION IS REAGRED 2150 POPULATION DENSITY PER SQ. Xl. 132.0 167.0 192.0 86.6 49.4 45.3 PtR SQ. IM. AGRICULTURAL LAND 247.0 308.0 347.0 330.2 252.0 149.0 POPULATION AGE STRUCTURE (PERCENT) 0-14 Ys. 40.8 42.5 42.0 44.3 43.1 45.2 15-64 YUS. 55.7 5^.6 55.0 52.4 53.2 51.9 65 TRS. AND ABOVE 3.5 2.9 3.0 3.1 3.0 2.8 POPILATION GROWTH RATE (PERCENT) TOTAL 1.9 2.3 2.1 2.4 2.4 2.7 033*8 2.5/& 3.3 3.1 4.1 4.6 4.3 CRUDE BRTh RAT (PER T805*24) 43.0 40.0 35.0 44.4 42.4 39.4 CRUDE DEATH RATE (PER TROUSAND) 21.0 17.0 14.0 16.4 is5.9 11.7 GROSS RP,RODUCTION RATE 3.2 2.9 2.4 3.2 2.9 2.7 FAMILY PLANNING ACCEPTORS, ANAL (THOUSANDS) 64.0 3782.0 4518.0 USERS (PERCENT OF MARRIED WOHD4) .. 12.0 16.9 7.9 12.2 13.2 FOOD AND NUSRITION INDEX OP FOOD PRODUCTION PI CAPITA (1969-71-100) 100.0 102.0 101.0 99.4 98.2 99.6 PER CAPITA SUPPLY OF CALORIES (PERCENT OF REQUIREMENTS) 95.0 92.0 89.0 93.0 93.3 94.7 PEOTEINS (GRAMS PER DAT) 51.0 53.0 48.0 56.1 52.1 54.3 OP w3CM ANIMAL AND PULSE 19.0 16.0 12.6 10.4 13.6 17.4 CNILD (AGES 1-4) MORTALITY RATE 28.0 22.0 18.0 19.2 18.5 11.4 USALTH LIFE EXPECTANCY AT SBn (YEARS) 43.0 48.0 !1.0 49.1 49.3 54.7 INFASNT NORTALITY RATE (PER THOUSAND) *- 134.0 .. .. 105.4 68.1 ACCESS TO SAFE WATER (PERCENT OP POPULATION) TOTAL .. 17.0 33.0 31.5 26.3 34.4 URBAN .. 60.0 83.0 63.9 58.5 57.9 R80U9A .. 6.0 20.0 20.1 15.8 21.2 ACCESS TO ECRETA DISPOSAL (PERCENS OF POPULATION) TOTAL .. 18.0 20.0 15.7 16.0 40.8 URBAN .. 85.0 87.0 66.8 65.1 71.3 RURAL .. 1.0 2.0 2.5 3.5 27.7 POPULATION PER PSYSICIAN 5800.01h 4890.0 3135.0 7107.9 11396.4 6799.4 POPULATZON PER NURSING PERSON 9630. h 5220.0 6320.0 12064.0 5552.4 1522.1 POPULATION PER HOSPITAL BED TOTAL 2590.0/i 2020.0 1231.0 2738.4 1417.1 726.5 'RBAN .. .. .. .. 197.3 272.7 RCRAL .. .. .. .. 2445.9 1404.4 A0XISSIONS PER HOSPITAL BE .. .. .. .. 24.8 27.5 HOUSING AVERAGE SIZE OF HOUSEEOLD -OTAL 5.2 .. 5.2 .. 5.3 5.4 URBAN 5.2 .. 4.8 .. 4.9 5.1 RCRAL 5.2 .. 5.3 .. 5.4 5.5 AVERAGE N0UMER OF PERSONS PER ROO0 TOTAL 2.6 2.3 URBAN .. .. IURAL .. .. ALCM5S .0 _LECTRICY (PERCENT OF 04EL.NGS ,OTAL .. 22.5 23.i1 'RI3d:s .. .. .. .. i7.8 a 5.1 RCENL .. . .. ..9.  ANNEX I Page 2 of 5 INDIA - SOCIAL INDICATORS DATA SHEET INDIA REFERENCE GROUPS (ADJUSTED AYERAGES - MOST RECENT ESTIMATE) - SAME SAKE NEXT HIGHER MOST RZCN GT OGRAJ?HIC INCOME INCOtE 1960 /b 1970 1b ESTIMAVE /b REGION /c GROUP /d GROUP /e EDUCATION ADJUSTED ENROLL YT RATIOS PRIMARY: .rAL 61.0 72.0 79.0 59.15 63.3 82.7 MALE 80.0 87.0 94.0 74.9 79.1 87.3 FEMALE 40.0 55.0 63.0 43.,7 48.4 75.8 SECONDARY: TOTAL 20.0 29.0 28.0 19.5 16.7 21.4 MALE 30.0 39.0 38.0 27.8 22.1 33.0 FEMALE 10.0 17.0 18.0 10.0 10.2 15.5 VOCATIONAL ENROL. (7 OF SECONDARY) 8.0 6.0L . 1.3 5.6 9.8 PUPIL-TEACHER RATIO PRIMARY 29.0 40.0 42.0 42.2 41.0 34.1 SECONDARY 16.0 17.0 .. .. 21.7 23.4 ADULT LITERACY RATE (PERCENT) 28.0 33.0 36.0 25.5 31.2 54.0 CONSUMPTION PASSENGER CARS PER THOUSAND POPULATION 0.7 1.0 1.2 2.3 2.8 9.3 RADIO RECEIVERS PER THOUSAND POPULATION 5.0 21.0 24.0 15.5 27.2 76.9 TV RECEIVERS PER THOUSAND POPULATION .. 0.1 0.5 .. 2.4 13.5 NEWSPAPER ("DAILY GENERAL INTEREST") CIRCULATION PER THOUSAND POPULATION 1U.0 16.0 16.0 6.2 5.3 18.3 CINEMA ANNUAL ATTENDANCE PMR CAPnTA 4.0 6.3 3.8 .. 1.1 2.5 LABOR FORCE TOTAL LABOR FORCE (THOUSANDS) 188670.0 226870.0 261000.0/k tEMALE (PERCENT) 31.3 32.6 32.2 21.4 24.8 29.2 AGRICULTURE (PERCENT) 73.0 73.0 73.0 66.3 69.4 62.7 INDUSTRY (PERCENT) 11.0 11.0 11.0 9.6 10.0 11.9 PARTICIPATION RATE (PERCENT) TOTAL 43.0 40.2 39.2 35.8 36.9 37.1 MALE 37.1 52.3 51.3 52.3 52.4 48.8 FEMALE 27.9 27.1 26.2 15.7 18.0 20.4 ECONOMIC DEPENDENCY RATIO |.0 1.1 1.1 1.3 1.2 1.4 INCONE DISTRIBUTION PERCENT OF PRIVATE INCOME RECEIVED BY HIGHEST 5 PERCENT OF HOUSEHOLDS 26.7 26.3/1 .. .. .. 15.2 HIGHEST 20 PERCENT OF HOUSEHOLDS 51.7 48.97T .. .. .. 48.2 LOWEST 20 PERCENT OF HOUSEHOLDS 4.1 6.771 .. .. .. 6.3 LOWEST 40 PERCENT OF HOUSEHOLDS 13.6 17.271 .. .. .. 16.3 POVERTY TARGET GROUPS ESTIMATED ABSOLUTE POVERTY INCOM LEVEL (USS PER CAPITA) URBAN .. .. 83.0 86.5 99.2 241.3 RURAL .. .. 73.0 74.2 78.9 136.6 ESTIMATED RELATIVE POVERTY INCOME LEVEL (USS PER CAPITA) URBAN .. .. .. .. 91.9 179.7 RURAL .. .. 50.0 50.4 54.8 103.7 ESTIMANTED POPULATION BELOW ABSOLDTE POVERTY 'NCOME LEVEL (PERCENT) URBAN ,. .. 47.0 44.3 44.1 24.8 RURAL .. .. 52.0 52.4 53.9 37.5 'lot available Not aoplicable. NOTES /a The adjusted group averages for each indicator are population-weighted geometric means, excluding the extreme values of the indicator and the most populated country in each group. Coverage of countries among the indicators depends on availability of data and is not uniform. /b Unless otherwise noted, data for 1960 refer to any year between 1959 and 1961; for 1970, between 1969 and 1971; and for Yost Recent Estimate, between 1974 and 1977. Sc outh Asia; /d 'LOw Income ($280 or less per capita 1976); /e Lower Middle Income (5281-550 per capita, 1976); ' m975 mid-year ?opuiation is estimated at 640.4 million; jj 1951-60; "h 1962; - i953; j 1967; /k 1978 mid-vear labor force is estimated at 261 million; /1 1964-05. Most Recenc Estimate of GNP per capita is for 1978. August, 1979  ANNEX I DtaysITIONS Or SOCIAL MIPCATORS Page 3 of 5 Nown: Although the data ar draw from -- so -e -genrally Judged the nest authoritative and reliable, it oo..id also be noted tiht they sy ooe b in tor-- ly_-lyc cnpasbahi becaus of tie i1ok of standadiord definitions and vencepte usd by differen.t -otoien do -1t1-tisg the attn. Thc dots are -vothele- u-ftol to d--ibe ordern of asgaitude, indicate trends, end oharstei- certain -ajor deffercoobc t -ecroo t.r-e. Th dutdtopnragofreo oiao are -ppjlntio--eghoed genmteio mea, etoldlg the entrea e-dur of the i -oatrad toe moo populated ovotry ic each group, D-e toan f data groulpaeae of all indivatne- fee Capital rplo- Oil nport-r and ot -d-ntor- of Aooeos to Wat-r sdoo.reto Diuposal, Hoting, lr-00 Di~ttihut-o and _eryfor other outey gops are pepuati.no--gited g-ntriv men without e-vio-a ad' thn -orec- alesen the 000 poulate ennstry.Siocsthe neerse of nunties stan te inicatos deoodsdni-o-ladilpyioldatasadf t octunifomi ontoo-noo- e-eiconue iANb ARhA (th-uad nq.h. ccnt ert ipsl(ecn o oolto2-ttl rn,synm ToAl -ITtal. auf_ otcmrsn a raadiln ctr.Nme fpol ttl ra,ad sel) acre. by e--rta d_icynati an Agrioultoral - atetonve t e -tlm of agricultural are usd teeperily Pero-tages of their rep-etive populations. Eorwin disp-alsy nld or Permnetly for -pa, pa-turen, -rket and htehea gardens ne to tie c_cetu- and dispuwal, wth or sitheut treatnet, ofhusc ecerta lie Calico andwseetrby eaterb-me systee or the sac of Pit Proims and toIe GNPO PEP CAPITA (10$) - GNP Por capot Os-t-t-s at --ret nakht pri-na Poeaio e tescs - sp tins ouv-ded by -unc of pravti-og plysiotana calculted by sanev teri-o method au World Bunk Atlas (1976-78 basis); qualifid fran a mdiclsbn tuiest ee 1960, 1970, and 1978 data. Poculatint per N_ibsa Pern -h. Poutt-i-droded hyo1 rofpato1gml ENacRGY CotiSUMgPrION PEP fAPTfA - Anna-1 wuptu f co-oril eney ad femle grduate au,-es pranti-Ia - n "ree..an waitantoaree - ~~~~(coa and lignite, petrleun, aat-rl ga_ and hydro-, tu1-a and gao_ yPsiatinner. Hospiot1 Bed - noali urban, an rurl - Population (total, urb-, the ta-ecoreity) en kilngm of coal equivalet Per capeta 196o0 and rural) divided by oh cirropetve oub-r of h-opatol tedo avilably1t 1970, and 1976 dta. pblic and pri-tte geneal and sp-valevd hvetpatal and rhbti1atati- .. rtru-. doaponals ar estubl-sh-tm per-ntelty otaffed hy at leat one phyne-a. PYRlUICTION ADt tITAL STATISTICSE Ctahbach-etn protadiog peilcopaily .usotdIal oac r too -woude tral Total Popultioe, Mid-Year iloe)- Au of July 1: 1)ko, 19710, nad h --oal,hoce, i-clude helt1 admdIvlesrsoaprsctysafa 0977 data, ~~~~~~~~~by a physivaa (hut by Iamdoa sistn,nre,mdieta.uii fo Urban Pp ltiow ) percet of total) - Patio of urban to total popuistin; i-ptieotasvm_datio n pr_d d a1inmtd rag f aedion favaltoe differet defictioss o urban reas ay affet -sp-obility of data Addtio erHa itate - Totltub-r of ad-ooi-n to or do agenIo umongo..ootraes; 0960, 19111, and 1975 data. h-nyitobs divided by the tutor f hedo. Populationi_ erPO -frotpultio projeetiva are base on tOiJSSING i5ttlpopulation by aoadte- n hi= mraoyad fertiibty raoSoon of Aivua. oid C pers- per hounehol,d) - total, urha, and r'-ru - ratesp.frjetiot parante_ for -oettlity rat- -opri- of three A hn-ahnld cons ists of a gruop ef imdlvdutab chart~h Living qnter cd levol a-auing life -opevt-oyu birth icraen ith vntyuthici tam -eal. A boarder or lodger cy orspnthe etIu1-d an oh, pe apt ivo-m Inoi and femle life -epectany atabiinin an bhusehld for ~tt-toti-al psop-se- y7-iposr. The par-stera for f-rtility rate also h-e hre lb-eel Anrge ouber of pesn Iprro- toa,uban, and rura - Avergo -ub-, anocog uela- at fertility a....rdi,,, toicm Ie end pan.tsf pesf oper room i al urban, and rural occpied vovotldwellin fanily IIvim"in performan E. c vatry n then naslgndowsfthe- r-spe-tue-y Oslitgw neldmv-ceuaet otroture and u"Iop, v or' nieobinations of ortality and fertility trenda for pr.e-tioc Access to blecresiy C perset of dueni-total, urbuw- o ua purpon_. ve-tionnl dwellings seth electricity in liriug quarters mnperectugo Stutoocary poulatioc - in ttatitoay popIttoo lbhere in no gen-th total, urban, and r-rl dee11acgsre_pestaey. ninoc the birth rate isequl to the dea th rate,I_d aln the age st_uturereaisovu tant. Thin in aeviete oly ftor fo-tility rates EDUCATION emo genertion ofsoeroyla-- et-ef maly. The attnaypp- Piayshs oa, male and benalc O- ao ou, a n eml m latin nine so e-tn-ted on the basin of tho prje-ted harantritica met of alt ages at the pejia-y 1ene no p _vetse- of re-pr-ti- peccay ofthe Ipopulti- in the yea 2ot0, an dtbr -nt of d_vboae of fetiiity -hbo1-uge populati-; normlly includes ohildr- aged -1-i y-ar nut rate to rplave_et lv..ad;u-tod for differot le-gthn of primar edovation; I or -nutr- oats. Yer .tti ry popliti.n in r-hobd - The yea h-e atatiosa.ry puplatine uiversa eduction eollent asp e-ed iSO prevet --or on up thor has boo reahed. ar hln orb- tho offivial u-hool age -ouwon ctY leodary s_boal - tota, ea1e and female - Yaputed to alo;uvtno Per og. km. - Mid-yea pnpulatioa Per oqua- kelo-t- (io heonare) of edu_tin requires at iat boar y-r of approved primary ata -oo .a. tottl arapr-idec ge-ralvai Ia, o te_eertraining im-tr-t-o,. Ic p,.i Per no. los.gricuit-ral iand - Conputod en ahot for- giciurlsd usully of 12 to 17 year of uge; ssrrepowdcw- onunevuro -torly only. -nolded. 9Py-4qta ciruor --ret) - Childeen (P-lb ynaa,weogaeYVat io.al esrllset (p-r-et of -e dary) - YVa-tiun-I i, o.t.o n . C15-61.yean, and retn0e 5 er- d 197 oe)aprcngsof aid-yea tebia, noto l,o other pegrea whivh oporte odepe-o-tlyors populatino1; LI5 190 n 17 aa deparolon f _dcotiay imotituti-a. Papulnoin Srowth bate(pecnt total - Anlul .1grow.th rates of tntai aid- Pupal-temhbe ratio - primay, asd se-odary - Tote1 otudooto nY iio yea P.pulti-c fnr 1950-hP lO-0an19-7.primary and se-dary berm dietded by -,-er af t-nob-r is thovorr- PPoplto Growt Pate te-rte ) - urta - Anaul grnuth rae -nf -rh spoding levea.. Npoplti..s for 1950-h60 1960-70, and 1970- 75. Adult Laterav rae -prct) - Laterate adlto el to - rean n ,uit,) Crude Birta Ftate (per thuaand) - A-noa Ite bietto per tOus-n of to- ape_eteo tota adult populati-o agd i9 yoar andovr year population; i900, 0970 and 1977 data. Crude Path Pate er- thousand)_A- Ano deatho Per thoo-ad of end-yea CONSUM0IIP N pouaIo; 1960, 1970, and 1917 data. Pasucoge Cars (per thousad pnoulatin) - PasnMgo oar vopr-n un o ProsoPeprouctin tat - Averag smber of dutrnanan hbean -etiwg lets than eight per...ts; e-lud-e anhuunv, h.-..e. wed eilita her norma reproo-te- period if oh cprate prenecth-age- opovifin f-rtaiity rate-; -sn11y fivey-ea -rag- e-ding ye 1960, Radio ilove (per thousand popuitatisn1) - All typos of re-i--r tar-d~ 0970, ad 1975. broadnata to ge_a1pbi pr -hoad of ppoy tiatn; eonlden onlive...ea Fasily Planing - A-vptors, Ar.u-l (th-unands - tonal ounbor of revivesonoutri antdIa er Ia itrtn of rd. eneoa aeptor= n hirtl-sotrol devi-n ne uPi Iof vatanwal fatly off-st; data for -iec year r.y nt tovopurt 00 p "nIsg Pr'gr'-, abolished lis-itig. Pually Painwig - u-er (perset of arnicd uncoo - P-r-tage of -arried TV -i--eber (per thuuaand poppittioc) - TVreoiv-r foe b-onitut, I ... Leea Iom f "Iold-hoairig age (15-u44 earo who s bieth--otrol Odoi- potlin per thousan.d populatina; e-lde- unli-e.ned fTV eoni...ovut to all marrid ...ee is tun 0g grouP. wed is yea h.mie egint-ati- of TV -eta _ aoeffect. FOOD dNIt NUJTRITION of "daily geea n-eetnesppr eiodn Pcr in pubicatioc Itd- of Fno.Prd-otit per Capita (1969-71-lw0) - Iaden of Per -pit. devted promaily to reseding general Ies.2f It"_ on caiderd to be "duily" anul rdutono l .. fond osanOti-` PrMutiom e_ld-a aved and if it appear at leas.tIfour ti,ac a seen1 feed and anon 1scdarY yea hai-. Cst.d'tis cove primar godo CieaAnalAt an per CaPita owe PerOndonte_aerfikt )c sgran -nt-ad nf sugar) which ar edible ned cotnio toti-ets u-d durig the Year, including dwi-nana to drivo.i vi--n and tatilo (eg frM nod teaar esided). Aggregate productia of -th country unito. in .n.ed on national acerag Iprlaser tprior neghta. Per _pitn supply of salorien (peren of rqureconI tep d fr.e LABOR PFORCt ewrg oqLivaeet of net fnod wuppl-c w-alal in onutry Per nap't Toalla~bor Pot ... (hosandw ( ~ ....ooi-tIly anti-e p-r-, i-oloning ored Per day. Akvailable -pplie- -opre- d-meta prdu-tic, _apoto les foectaiand unemploydbhot.-u1idin hnone..ve-, stdeoto,o~t-.Dfin~it,o -nportn, Iad ihage 1to stok_. rt nuPpplIsavoviod annifed -eds, ancron _utrecs ar nt-oparble qnniincd Io nd p motg,ad losne Or. ditibutia. Require- fpppipJporYIt) - 1Femlelbor forc us perv-tuge at ttal labor fora- oats wer estimated hy PAl haaed nophyninigi-ti neds for nonal Agl9trfr (- lbor, forv_ in fa-rmig, f-etry, bunting and activlity and health onocideri.g --oroneta1 te-pert-r, body weights, fiuhitg -n p-r-etse f total labor force ag 'cdae otrihutiona of population, and a11iahg 10 p-r-et for inuty(eva)-lbor 'forcein ainig, etu it auatra 0 ustent hou..ehoild levo. eleotr itiy,sterad gn an -ervtge of total Iblabrfre Per -apntu upyo rt (r-n per day) - Protelo vont-t if Per Partivapatiun Fate ) nerset) - tnt1, male, ad 'e-alo - iurtevo'putan o caia -e uply of fd per day. ilet su,pply of fcnd is belised asat inity rates are s-pund an tntl, male, nod C -ale labor Corns at Pe- ahn-. Pes;ui_tent for all vuteirs estabithed by USDA pennide for a cegtnf total, male and femaic pspuiatiac af all g-n repeotively; 000mm alonnc of 60 grant of total Protein per day and 20 grEl o 191 970, and 1975 dats. Thee r li parin ptIo rte reflvob aimal and polar protein,of oh 10 grnm ah-ui be animal penei. uge-eutrotar of the populatio, and look ban teand. A few _,sti-t Thea atand-de tre lose tatoaof 75 gran of tnta1 pnamie and ar from natioa e. ur. ee ETgr_ of animal" prteo aa naerge for the unrId, proposed by PAP Pennants tepsadensy watin - Patio of pnpltaa under ii wed lb and -r to in the flied World PFod Purvy, th labor fre in age group of 15 -61 yeaea. Per capita pr-teim supply from soinal and pulse - Prstein supply nf fned deeme1d Peon anima1 and pulses he grams p-o day. OINCOMFt PSTRIBLTTION (.hL h~ id .idb ih Ch'il (aen1-) e talo wane (Per thousnd - Anui lea-ths Poe thouand Pestae fPri-ate Insa ht ncs td eeceb ihs it age groop iIyas ts hlde iv this age grop; fsr -nt de-l- 5 peen,rehe P.poeet, poorest pc pe-cet, and poorest 40 per-at opiogosuorteecs data derived from life tables of h-hseblda. IisAITI POVERTY TARGET GOUPSO lipeloectany at irth (omara) -Averag toble of year of life Ostimatcd Absolute Povrty Iauelvl(P e 2caitsL) - urban aod era -. remahoing n bit; 90 170,an 97.dat. Ab-nlute pn-rtylaeeecli Ithtanaleebeoaltannil infant 4ortality Rtot (Per thousad) - Annual deaths of infanta ed-r on autitisaa.lly adequate diet plow ense-tia1 ova-food require--to as nto year of age Per thousad Ii-e births. affordable. Aoes to Oafs Water (oce-t nf pniticn) -itntal, uranud rurl- Ostimated Raatle- therety sc Level (009 per capita) - rban and rura Peeler ofpeoPle (otal, nrb, and ralatIeeabea ssts Rura reati-epoet incom leve is we--third of averag per apita safe eater supply )iteodea treated -uf- eaters or antr-ated hut per- a iwoum of the voatry. Urban iro1 is derived f-a the rura benc -avotaninated water sc n a frw. protected -hnr lee, spriega, eith adjuetont fnr higher -t If lrinig in urbasaen we -aitary eIls a pr-etages of their r-spetiem P.pulati-oms. Estimated Populatien Be1se AisoePeeyioa em "ret) - Pub n anuban area poblie fsntsdn or standpnsa lccahed eat asr- than rura - Feenmt If popultisa (uban and rural)1b ar 'absolut poo" 000 meters from a house as be ...eidered as heing ith ia reaonble ascoas of that hous, i rural uren rea..able enemas seud imply thnt the hnoe-ofe orteer- fthe hi...ehoid do ant bar tn spea a tnv.... an d Sov a1 lata niv--o dieprup-rioaa.te part of the day in fmtshir.g the fatly'. _stera..eds to....sic Analysis end Prjoio oparo-et Au,gust 1979  ANNEX I SCImC DVZVUR M Page 4 of 5 GNP Fn CAPTITA IN 1977: C8 150 b/ c GROSS lNKTONL YRODUCr IN 1977/78 mMUL eFn t7.. content prices) us$ Bla. 1960/61-194/65 1985186-199/70 1970/71-1976/77 GNP at Market Prices 101.47 IO0.0 3.9 3.8 3.2 Gross Domestic Investment 21.65 21.3 Gross National Saving 22.77 22.4 Currant Account Balance d/ 1.04 1.0 Resource Balance d/ - 0.31 - 0.3 RR=,US AIBOR YICF AND PRm0TTI IN 197L Value Added (at factor cost) LAbor Porce V.A. Per lorker us$ Bln. _ L. 7 I. IU. of ISatigAnl Averase 4riculture 24.5 46.6 130.0 72.1 1" 64 industry 11.8 22.3 20.2 11.2 582 199 Services 16.3 Sl.1 30.2 16.7 5U 1U Total/average 52.6 100.0 180.4 100.0 292 1 GOVDRNSr FINANCZ a/ Genral Govsraent Central gC,eot Re. Bln 7.of as 51 of 1977/7S8 2L47s-1s"M 1977 7 197_/75-1977/78 Current Receipts 164.42 1iI.9 18.2 95.62 11.0 10.5 Current Expenditures 157.29 18.1 16.5 95.27 10.9 9-9 Current Surplus/Deficit 7.1.3 0.8 1.6 0.35 n.c. 0.6 Capital Expenditures f/ 62.58 7.2 7.0 43.31 5.0 5.0 Ixtermal Assistance (net) g/ 9.82 L.1 1.6 9.82 1.1 1.6 NONEY. CRIIT AND PUICS 1970/71 1g73/74 1974/75 1975/76 1976/77 1977/78 etmber 1977 t_ebr 1978 (Rs Billion outstandin at and of period) money and Quasi "may 121.4 198.4 220.3 254.7 308.9 3 5.1 334.8 395.8 3ank Credit to Goverment (net) 52.6 87.3 95.3 101.1 110.2 129.7 119.3 139.5 Bank Credit to Comrcial 6ector 64.6 107.0 126.7 153.9 185.1 210.0 195.3 223.5 (Percentage or Index Numbers) Jssrlv 1978 Januarv 1979 honey and Qusi Money as . of GDP 30.1 33.5 31.5 34.5 38.8 41.9 Wholesale Price Index (1970/71 - 100) 100.0 139.7 174.9 173.0 176.6 185.8 14.5 184.6 Anmil percentage chsnges in: Wholesale Price Index 7.7 20.2 25.2 - 1.1 2.1 5.2 3.2 0.1 lank Credit to Goverment (aet) 10.8 12.3 9.2 6.1 9.0 17.7 13.4 16.9 Bank Credit to Coinrcial Sector 19.4 22.6 18.4 21.5 20.3 13.5 16.6 14.4 a/ The per capita GNP estimate is at mrkat prices, calculated by the conversion tecuiqua used in the World tles. All other conversions to dollars in this table are at the average exchange rate prwailiAg daring Sh period covered. b/ Quick Estimates. c/ Computed from trend line of GD? at factor cost series, including one observation before first yer and one observation after last year of listed period. d/ World lank estimates; not necessarily consistent with official National Account Statistics. */ Transfers batween Centre and States have been netted out. f/ All loans and advances to third parties have been netted out. j/ Ixternal grents and loans, less principal repayments, as recorded in the Central ludget.  ANNEX I Page 5 of 5 h| h/ BALANCE OF PAYMENTS 1975/76 1976/77 1977/78 1978179 MERCHANDISE EXPORTS (AVERAGE 1975/76 - 1977/78) (US$ million) US$ Mln. % Exports of Goods 4,672 5,753 6,276 6,800 Engineering Gods 610 11 Imports of Goods -6,449 -5,928 -7,237 -8,400 Tea 417 7 Trade Balance -1,777 - 175 - 961 -1,600 Gems 377 7 NFS (net) 310 360 650 700 Clothing 331 6 Leather and Leather Resource Balance -1,467 185 - 311 - 900 Products 278 5 i/ Jute Manufactures 267 5 Interest Payments (net) - 216 - 180 - 50 - Iron Ore 265 5 Other Factor Payments (net) - - - - Cotton Textiles 248 4 Net Transfers J/ 470 730 1,400 1,300 Sugar 244 4 Others 2,530 45 Balance on Current Account -1,213 735 1.039 400 Total 5.567 100 Official Aid Disbursements 2,341 1,953 1,628 1,805 EXTERNAL DEBT, MARCH 31, 1978 - Amortization - 531 - 560 - 645 - 725 US$ billion Transactions with IMF 242 - 337 - 330 - 158 Outstanding aLd Disbursed 14.8 All Other Items - 45 - 216 384 205 Undisbursed 4.3 Outstanding, including Increase in Reserves () - 794 -1,575 -2,076 -1,527 Undisborsed 19.1 Gross Reserves (end year) 2,172 3,747 5,823 7,350 h/l/ Net Reserves (end year) k/ 1,365 3,276 5,668 7,350 DEBT SERVICE RATIO FOR 1977/78 15.0 percent Fuel and Related Materials IBRD/IDA LENDING, DECEMBER 31, 1978 Imports 1,417 1,581 1,817 1,980 US$ million of which: Petroleum 1,417 1,581 1,817 1,980 IBRD IDA Exports 43 37 33 n.a Outstandi..6 ..,d Disbursed 613 3,864 of which: Petroleum 22 21 18 n.a. Undisbursed 615 1,992 Outstanding, including m/ Undisbursed 1,228 5,856 RATE OF EXCHANGE June 1966 to mid-December 1971 : US$1.00 = Rs 7.5 Rs 1.00 - US$0.133333 Mid-December 1971 to end-June 1972 : US$1.00 = Rs 7.27927 Rs 1.00 - US$o.137376 After end-June 1972 : Floating Rate Spot Rate end-December 1978 : US$1.00 = Rs 8.188 US$1.00 = Rs 0.122 h/ Estimated. i/ Figures given cover all investment income (net). Major payments are interest on foreign loans and charges paid to IIF, and major receipt is interest earned on foreign assets. J/ Figures given include workers' remittances but exclude official grant assistance, which is included within official aid disbursements. k/ Excludes net use of IMP credit. 1/ Amortization and interest payments on foreign loans as a percentage of merchandise exports. m/ Excludes exchange adjustment, but includes US$ 22 million due to third parties.  ANNEX II Page 1 of 17 THE STATUS OF BANK GROUP OPERATIONS IN INDIA A. STATEMENT OF BANK LOANS AND IDA CREDITS (As of January 31, 1980) US$ million 1/ Loan or (Net of Cancellations) Credit No. Year Borrower Purpose Bank IDA Undisbursed 41 Loans/ 1,163.2 60 Credits fully disbursed 3,624.6 312-IN 1972 India Population -- 21.0 .86 342-IN 1972 India Education -- 12.0 5.92 356-IN 1973 India IDBI I -- 25.0 8.44 378-IN 1973 India Karnataka Agricultural Markets -- 8.0 4.42 390-IN 1973 India Bombay Water Supply I -- 55.0 7.73 456-IN 1974 India HP Apple Processing & Marketing -- 13.0 8.11 481-IN 1974 India Trombay IV Fertilizer -- 50.0 .61 1011-IN 1974 India Chambal (Rajasthan) CAI) 52.0 -- 22.61 482-IN 1974 India Karnataka Dairy -- 30.0 21.55 502-IN 1974 India Rajasthan Canal CAD -- 83.0 36.68 520-IN 1974 India Sindri Fertilizer -- 91.0 3.22 521-IN 1974 India Rajasthan Dairy -- 27.7 16.91 522-IN 1974 India Madhya Pradesh Dairy -- 16.4 7.36 526-IN 1975 India Drought Prone Areas -- 35.0 11.56 1079-IN 1975 IFFCO IFFCO Fertilizer 109.0 -- 11.30 1097-IN 1975 ICICI Industry DFC XI 95.6 -- 5.28 532-IN 1975 India Godavari Barrage Irrigation -- 45.0 10.80 541-IN 1975 India West Bengal Agric. Development -- 34.0 13.53 562-IN 1975 India Chambal (Madhya Pradesh) CAD -- 24.0 8.18 572-IN 1975 India Rural Electrification I -- 57.0 15.25 585-IN 1975 India Uttar Pradesh Water Supply -- 40.0 24.97 598-IN 1975 India Fertilizer Industry -- 105.0 63.61 604-IN 1976 India Power Transmission IV -- 150.0 86.73  ANNEX II Page 2 of 17 US$ million 1/ Loan or (Net of Cancellations) Credit No. Year Borrower Purpose Bank IDA Undisbursed 609-IN 1976 India Madhya Pradesh Forestry T.A. -- 4.0 2.43 610-IN 1976 India Integrated Cotton Development -- 18.0 14.60 1251-IN 1976 India Andhra Pradesh Irrigation 145.0 -- 113.42 1260-IN 1976 India IDBI II 40.0 -- 24.90 1273-IN 1976 India National Seeds I 25.0 -- 24.22 1313-IN 1976 India Telecommunications VI 80.0 -- 23.47 1335-IN 1976 India Bombay Urban Transport 25.0 -- 10.47 680-IN 1977 India Kerala Agric. Development -- 30.0 29.25 682-IN 1977 India Orissa Agric. Development -- 20.0 17.24 685-IN 1977 India Singrauli Thermal Power -- 150.0 112.89 687-IN 1977 India Madras Urban Development -- 24.0 15.74 690-IN 1977 India WB Agric. Exten- sion & Research -- 12.0 12.00 695-IN 1977 India Gujarat Fisheries -- 4.0 1.87 1394-IN 1977 India Gujarat Fisheries 14.0 -- 14.00 712-IN 1977 India Madhya Pradesh Agric. Dev. -- 10.0 9.24 720-IN 1977 India Periyar Vaigai Irrigation -- 23.0 17.43 728-IN 1977 India Assam Agricultural Development -- 8.0 7.23 1473-IN 1977 India Bombay High Offshore Development 150.0 -- 75.97 736-IN 1977 India Maharashtra Irrigation -- 70.0 52.62 737-IN 1977 India Rajasthan Agricul- tural Extension -- 13.0 10.93 740-IN 1977 India Orissa Irrigation -- 58.0 51.88 1475-IN 1977 ICICI Industry DFC XII 80.0 -- 39.73 747-IN 1978 India Second Foodgrain Storage -- 107.0 96.11 756-IN 1978 India Calcutta Urban Development II -- 87.0 62.79 761-IN 1978 India Bihar Agric. Extension & Research -- 8.0 7.75  ANNEX II Page 3 of 17 US$ million 1/ Loan or (Net of Cancellations) Credit No. Year Borrower Purpose Bank IDA Undisbursed 1511-IN 1978 India IDBI Joint/Public Sector 25.0 -- 25.00 1549-IN 1978 TEC Third Trombay Thermal Power 105.0 -- 94.17 788-IN 1978 India Karnataka Irrigation -- 126.0 107.65 793-IN 1978 India Korba Thermal Power -- 200.0 179.25 806-IN 1978 India Jammu-Kashmir Horticulture -- 14.0 13.99 808-IN 1978 India Gujarat Irrigation -- 85.0 80.12 815-IN 1978 India Andhra Pradesh Fisheries -- 17.5 17.50 816-IN 1978 India National Seeds II -- 16.0 15.97 1592-IN 1978 India Telecommunications VII 120.0 -- 65.04 824-IN 1978 India National Dairy -- 150.0 146.02 842-IN 1979 India Bombay Water Supply II -- 196.0 194.78 843-IN 1979 India Haryana Irrigation -- 111.0 90.61 844-IN 1979 India Railway Modernization & Maintenance -- 190.0 172.90 848-IN 1979 India Punjab Water Supply & Sewerage -- 38.0 36.03 855-IN 1979 India National Agricultural Research -- 27.0 27.00 862-IN 1979 India Composite Agricultural Extension -- 25.0 25.00 871-IN 1979 India NCDC -- 30.0 27.07 1648-IN 1979 India Ramagundam Thermal Power 50.0 -- 50.00 874-IN 1979 India Ramagundam Thermal Power -- 200.0 200.00 889-IN 1979 India Punjab Irrigation -- 129.0 125.26 899-IN 1979 India Maharashtra Water Supply -- 48.0 48.00 911-IN 1979 India Rural Electrification Corp. II -- 175.0 175.00 925-IN* 1979 India Uttar Pradesh Social Forestry -- 23.0 23.00  ANNEX II Page 4 of 17 US$ million 1/ Loan or (Net of Cancellations) Credit No. Year Borrower Purpose Bank IDA Undisbursed 947-IN* 1979 India ARDC III -- 250.0 250.00 1743-IN* 1979 India Thal Fertilizer 250.0 -- 250.00 963-IN* 1979 India Inland Fisheries 20.0 20.00 Total 2,528.8 7,263.2 of which has been repaid 986.3 57.2 Total now outstanding 1,542.5 7,206.0 Amount Sold 133.8 of which has been repaid 116.2 17.6 Total now held by Bank and IDA 1,524.9 7,206.0 Total undisbursed (excluding*) 599.6 2,586.62 * Not yet effective 1/ Prior to exchange adjustment.  ANNEX II Page 5 of 17 B. STATEMENT OF IFC INVESTMENTS (As of January 31, 1980) Fiscal Amount (US$ million) Year Company Loan Equity Total 1959 Republic Forge Company Ltd. 1.5 - 1.5 1959 Kirloskar Oil Engines Ltd. 0.9 - 0.9 1960 Assam Sillimanite Ltd. 1.4 - 1.4 1961 K.S.B. Pumps Ltd. 0.2 - 0.2 1963-66 Precision Bearings India Ltd. 0.7 0.3 1.0 1964 Fort Closer Industries Ltd. 0.8 0.4 1.2 1964-75-79 Mahindra Ugine Steel Co. Ltd. 11.8 1.4 13.2 1964 Lakshmi Machine Works Ltd. 1.0 0.3 1.3 1967 Jayshree Chemicals Ltd. 1.0 0.1 1.1 1967 Indian Explosives Ltd. 8.6 2.9 11.5 1969-70 Zuari Agro-Chemicals Ltd. 15.1 3.8 18.9 1976 Escorts Limited 6.6 - 6.6 1978 Housing Development Finance Corporation 4.0 1.4 5.2 1980 Deepak Fertilizer and Petrochemicals Corporation Ltd. 7.5 1.1 8.6 TOTAL 61.1 11.5 72.6 Less: Sold 5.9 1.7 7.6 Repaid 17.4 - 17.4 Cancelled 6.2 0.7 6.9 Now Held 31.6 9.1 40.7 Undisbursed 11.7 1.7 13.4  ANNEX II Page 6 of 17 C. PROJECTS IN EXECUTION 1/ Generally, the implementation of projects has been proceeding reasonably well. Details on the execution of individual projects are below. The level of disbursements was US$538.3 million in FY79 or 39% of Bank Group commitments to India in that year. The undisbursed pipeline of US$3,186 mil- lion as of January 31, 1980, reflects the lead time which would be expected given the mix of fast- and slow-disbursing projects in the India program. Ln. No. 1097 Eleventh Industrial Credit and Investment Corporation of India Project; US$100.0 million loan of April 2, 1975; Effective Date: July 1, 1975; Closing Date: December 31, 1980 Ln. No. 1475 Twelfth Industrial Credit and Investment Corporation of India Project; US$80.0 million loan of July 22, 1977 Effective Date: October 4, 1977; Closing Date: March 31, 1983 These loans are supporting industrial development in India through a well-established development finance company and are designed to finance the foreign exchange cost of industrial projects. ICICI continues to be a well-managed and efficient development bank financing medium- and large-scale industries, which often employ high technology and are export-oriented. Loan 1097 is fully committed and disbursements are slightly ahead of schedule. Disbursements under Loan 1475 are also ahead of schedule. Loan No. 1260 Second Industrial Development Bank of India Project; US$40.0 million loan of June 10, 1976; Effective Date: August 10, 1976; Closing Date: June 30, 1981 Loan No. 1511 IDBI Joint/Public Sector Project; US$25.0 million loan of March 1, 1978; Effective Date: May 31, 1978; Closing Date: March 31, 1983 Loan 1260 is designed to assist the Industrial Development Bank of India in promoting small- and medium-scale industries and in strengthening the State Financial Corporations involved. Loan 1511 is designed to encourage the pooling of private and public capital in medium-scale joint ventures. The project also assists IDBI in carrying out industrial sector investment studies and in strengthening the financial institutions dealing with the state joint/ public sector. 1/ These notes are designed to inform the Executive Directors regarding the progress of projects in execution, and in particular to report any problems which are being encountered and the action being taken to remedy them. They should be read in this sense and with the under- standing that they do not purport to present a balanced evaluation of strengths and weaknesses in project execution.  ANNEX II Page 7 of 17 Cr. No. 440 Bihar Agricultural Credit Project; US$32.0 million credit of November 29, 1973; Effective Date: March 29, 1974; Closing Date: March 31, 1980 The project provides US$32.0 million in support of a lending program for 50,000 tubewells and pumpsets investment in the Tirhut Division of Bihar. Because of slow disbursements caused by a lower than estimated Dollar/Rupee exchange rate and by low unit investment costs comXpared with appraisal esti- mates, IDA agreed to extend the closing date to March 1980 and expand the project area to cover the whole State. Physical targets have now been achieved and the credit should be fully disbursed by the revised closing date. Cr, No. 947 Third Agricultural Refinance and Development Corporation (ARDC) Project; US$250.0 million credit of August 20, 1979; Effective Date: January 2, 1980; Closing Date: June 30, 1982 Refinancing of lending to farmers has been started under this project after the completion of the Second ARDC Project toiwards the end of 1979. Cr. No. 747 Second Foodgrain Storage Project; US$107.0 million credit of January 6, 1978; Effective Date: May 17, 1978; Closing Date: June 30, 1982 As of September 1979, satisfactory progress was being made in the construction of bag storage warehouses, despite problems of land acqui- sition at some sites. However, construction of flat bulk warehouses and port silos is not expected to be completed until 11985, as a result of delays in the employment of consultants and the longer time required for the prepa- ration of technical specifications and tenders and the construction itself. Cr. No. 456 Himachal Pradesh Apple Processing and Marketing Project; US$13.0 million credit of January 22, 1974; Effective Date: September 26, 1974; Closing Date: December 31, 1980 The project encountered prolonged initial delays due to managerial and technical problems. These problems have been largely resolved, but con- struction progress remains slow due to material shortages and severe winter conditions. Initial packing house operations were undertaken in the last two seasons with favorable response from farmers. The project is scheduled for completion by December 1980. Cr. No. 806 Jammu-Kashmir Horticulture Project; US$US$14.0 million credit of July 17, 1978; Effective Date: January 16, 1979; Closing Date: June 30, 1984 The principal executing agency, J&K Horticulture Produce Marketing and Processing Corporation, is under strong management and rapid progress has been made in start-up operations with only minor sLippage. The project's research activities, however, are behind the original schedule due to poor organization.  ANNEX II Page 8 of 17 Ln. No. 1313 Telecommunications VI Project; US$80.0 million loan of July 22, 1976; Effective Date: September 14, 1976 Closing Date: March 31, 1980 Ln. No. 1592 Telecommunications VII Project; US$US$120.0 million loan of June 19, 1978; Effective Date: October 30, 1978; Closing Date: March 31, 1982 Both projects are progressing satisfactorily, although as of November 1979, when they were last reviewed, imports of electronic switching equipment and local production of electro-mechanical switching equipment were behind schedule, resulting in a reduced growth rate for the installa- tion of direct exchange lines. Institutional improvements envisaged under the projects have been achieved, and the financial situation of the Posts and Telegraphs Department remains sound. Cr. No. 520 Sindri Fertilizer Project; US$91.0 million credit of December 18, 1974; Effective Date: February 27, 1975; Closing Date: March 31, 1980 Ln. No. 1079 IFFCO Fertilizer Project; US$US$109.0 million loan of January 24, 1975; Effective Date: April 28, 1975; Closing Date: March 31, 1980 Cr. No. 598 Fertilizer Industry Project; US$105.0 million credit of December 31, 1975; Effective Date: March 1, 1976; Closing Date: June 30, 1980 Ln. No. 1743 Thal Fertilizer Project; US$250.0 million loan of August 20, 1979; Effective Date: February 29, 1980 (expected); Closing Date: November 30, 1984 The Sindri project has also been commissioned and commercial produc- tion is expected shortly. The IFFCO project was delayed by about a year as a result of a change in feedstock from fuel oil to naphta and delays in comple- tion of engineering contracts. However, project construction is now proceeding satisfactorily and commissioning is expected within the next six months. Credit 598 is designed to increase the utilization of existing fertilizer production capacity. The project has encountered delays in sub-project prep- aration and investment approvals by the Government. Further, some of the sub- projects identified earlier may not materialize because of reconsideration by the Central and State governments. IDA has agreed to a list of sub-projects to replace the ones that are likely to be dropped. Because of the above, the project is likely to be delayed by about 18 months.  ANNEX II Page 9 of 17 Cr. No. 378 Karnataka Wholesale Agricultural Markets Project; US$8.0 mil- lion credit of May 9, 1973; Effective Date: September 7, 1973; Closing Date: June 30, 1981 Delays in project implementation were encountered as a result of frequent changes in management in the early stages, and these have necessi- tated an extension of the closing date by 18 months to June 30, 1981, to allow for completion of works and withdrawal of the credit. Progress is improving, however. As of May, 1979, construction on 36 of the 39 markets envisaged under the project was underway or completed, and trade had shifted to about half of these. An additional five markets may be included in the project at the request of the State government. Cr. No. 312 Population Project; US$21.2 million credit of June 14, 1972; Effective Date: May 9, 1973; Closing Date: June 30, 1980 This credit is designed to finance an experimental and research oriented population project in Karnataka and Uttar Pradesh. The project's infrastructure, which would provide the optimum facilities (buildings, equip- ment, staff and transport) according to GOI standards in selected districts in each state, is virtually complete. The two Population Centers, established to design and monitor research aimed at improving the family planning program, are now functioning. The Population Centers are expected to complete their evaluation of family planning strategies and the introduction of management information and evaluation systems by the present closing date. Cr. No. 342 Agricultural Universities Project; US$12.0 million credit of November 10, 1972; Effective Date: June 8, 1973; Closing Date: December 31, 1981 The project involves the development of the agricultural univer- sities in Assam and Bihar. The primary aim of the AUs project is to improve the quality and practical training of undergraduates and so the spectrum of their employment opportunities; and to strengthen university structure to enable it to give an impetus to agricultural and rural development. Consider- able progress has been made in achieving the latter objective; but achieving educational objectives is more slowly attainable, constrained by traditional attitudes and structures where consistent effective leadership falters. Changes to a more functional orientation are now planned. The Project Director and others responsible are aware of the constraints and are support- ing efforts to remove themn. Cr. No. 390 Bombay Water Supply and Sewerage Project; US$55.0 million credit of January 22, 1974; Effective Date: March 13, 1974; Closing Date: June 30, 1981 Cr. No. 842 Second Bombay Water Supply and Sewerage Project; US$196.0 million credit of November 13, 1978; Effective Date: June 12, 1979; Closing Date: March 31, 1985  ANNEX II Page 10 of 17 Cr. No. 848 Punjab Water Supply and Sewerage Project; US$38.0 million credit of October 27, 1978; Effective Date: January 25, 1979, Closing Date: March 31, 1983 Cr. No. 899 Maharashtra Water Supply and Sewerage Project; US$48.0 mil- lion credit of June 21, 1979; Effective Date: November 9, 1979; Closing Date: June 30, 1984 Having overcome earlier difficulties, including cost overruns caused by inflation (requiring project redefinition in February 1975), redesign of major project components and the addition of a supplementary study on sewage disposal, Credit 390 is now progressing satisfactorily. The water treatment works were successfully completed on schedule at the end of 1979. Completion of construction of the project sewerage works is scheduled for mid-1980. Financial performance of the project entity is satisfactory. Implementation of Credit 842, a second stage of the ongoing Credit 390, is proceeding to schedule. Preliminary work in connection with implementation of Credit 848 is progressing satisfactorily. Cr. No. 585 Uttar Pradesh Water Supply and Sewerage Project; US$40.0 million credit of September 25, 1975; Effective Date: February 6, 1976; Closing Date: June 30, 1980 The Project has had a slow start due to delays in the preparation of technical reports for regional and local water authorities and in the engagement of consultants. While improvements have been made in the physical execution, other aspects of project implementation continue to lag so that disbursements under the Credit have fallen short of estimates at the time of appraisal. In order to improve the situation, arrangements have been made to closely supervise and coordinate implementation. Cr. No. 756 Second Calcutta Urban Development Project; US$87.0 million credit of January 6, 1978; Effective Date: April 7, 1978; Closing Date: March 31, 1983 The project is proceeding quite well in most sectors, in spite of the severe floods of September 1978 and serious Statewide electric power shortages. Procurement is generally on schedule for equipment and consultants' services, though somewhat behind for larger civil works contracts. Staff shortages in some of the implementing agencies continue, although more exten- sive use of consultants has to a great degree alleviated this problem. Cr. No. 687 Madras Urban Development Project; US$24.0 million credit of April 1, 1977; Effective Date: June 30, 1977; Closing Date: September 30, 1981 Physical progress is generally satisfactory and costs are within appraisal estimates on most components. However, land acquisition problems and consequent delays in construction on one of the three sites and service areas will result in about 15 months delay in the completion of the final sections of these areas. Inadequate attention and staff has been given to  ANNEX II Page 11 of 17 the financial analysis and marketing strategies required to ensure that anti- cipated cost recovery in the sites and services and slum upgrading components and thus replicability is actually achieved. However, there is still ample time to deal effectively with these problems; technical assistance is being sought to strengthen financial management and analysis. Cr. No. 482 Karnataka Dairy Development Project; US$30.0 million credit of June 19, 1974; Effective Date: December 23, 1974; Closing Date: September 30, 1982 Cr. No. 521 Rajasthan Dairy Development Project; US$27.7 million credit of December 18, 1974; Effective Date: August 8, 1975; Closing Date: December 31, 1982 Cr. No. 522 Madhya Pradesh Dairy Development Project; US$16.4 million credit of December 18, 1974; Effective Date: July 23, 1975; Closing Date: June 30, 1982 Cr. No. 824 National Dairy Project; US$150.0 million credit of June 19, 1978; Effective Date: December 20, 1978; Closing Date: December 31, 1985 These four credits, totalling US$224.1 million, support dairy devel- opment projects organized along the lines of the successful AMUL dairy coopera- tive scheme in Gujarat State. More than 2,100 dairy cooperative societies (DCS) have been established under the three state projects (Karnataka 923, Rajasthan-926, Madhya Pradesh-272). Farmer response had been excellent and project authorities are under considerable producer pressure to speed up the establishment of DCS. Profitability in almost all of the DCS is good and con- struction of dairy and feed plants is now proceeding at a satisfactory pace. Limited milk processing capacity has been the major constraint to DCS formation in all three projects. Under the National Dairy Project, three subprojects with an estimated total cost of approximately Rs 1,000 million have been appraised by the Indian Dairy Corporation and a further eight subprojects are in various stages of preparation and appraisal. Advance procurement of dairy equipment is well underway though disbursements have been slow, mainly as a result in the start of project operations. Cr. No. 532 Godavari Barrage Project; US$45.0 million credit of March 7, 1975; Effective Date: June 9, 1975; Closing Date: June 30, 1980 Both the civil works and equipment tenders have been awarded after international competitive bidding. Work is proceeding satisfactorily. Ln. No. 1011 Chambal (Rajasthan) Command Area Development Project; US$52.0 million loan of June 19, 1974; Effective Date: December 12, 1974; Closing Date: June 30, 1981 Cr. No. 502 Rajasthan Canal Command Area Developmoent Project; US$83.0 million credit of July 31, 1974; Effective Date: December 12, 1974; Closing Date: Junes 30, 1981  ANNEX II Page 12 of 17 Cr. No. 562 Chambal (Madhya Pradesh) Command Area Development Project; US$24.0 million credit of June 20, 1975; Effective Date: September 18, 1975; Closing Date: June 30, 1981 Ln. No. 1251 Andhra Pradesh Irrigation and Command Area Development (TW) Composite Project; US$145.0 million loan (Third Window) of June 10, 1976; Effective Date: September 7, 1976; Closing Date: December 31, 1982 Cr. No. 720 Periyar Vaigai Irrigation Project; US$23.0 million credit of June 30, 1977; Effective Date: September 30, 1977; Closing Date: March 31, 1983 Cr. No. 736 Maharashtra Irrigation Project; US$70.0 million credit of October 11, 1977; Effective Date: January 13, 1978; Closing Date: March 31, 1983 Cr. No. 740 Orissa Irrigation Project; US$58.0 million of October 11, 1977; Effective Date: January 16, 1978; Closing Date: October 31, 1983 Cr. No. 788 Karnataka Irrigation Project; US$126.0 million credit of May 12, 1978; Effective Date: August 10, 1978; Closing Date: March 31, 1984 Cr. No. 808 Gujarat Irrigation Project; US$85.0 million credit of July 17, 1978; Effective Date: October 31, 1978; Closing Date: June 30, 1984 Cr. No. 843 Haryana Irrigation Project; US$111.0 million credit of August 16, 1978; Effective Date: December 14, 1978; Closing Date: August 31, 1983 Cr. No. 889 Punjab Irrigation Project; US$120.0 million credit of March 30, 1979; Effective Date: June 20, 1979; Closing Date: June 30, 1985 These projects, based on existing large irrigation systems, are designed to improve the efficiency of water utilization and, where possible, to use water savings for bringing additional areas under irrigation. Canal lining and other irrigation infrastructure, drainage, and land shaping are prominent components of these projects. In addition, provisions have been made to increase agricultural production and marketing by reforming and upgrading agricultural extension services and by providing processing and storage facilities and village access roads. Progress of these projects is generally satisfactory with the exception of the Nagarjunasagar compo- nent of Loan 1251 where water losses have proven higher than anticipated. Specific efforts are underway to redesign this project so that it can achieve its original objectives.  ANNEX II Page 13 of 17 Cr. No. 541 West Bengal Agricultural Developmernt Project; US$34.0 million credit oif April 28, 1975; Effective! Date: August 28, 1975; Closing Date: March 31, 1980 The progress of shallow tubewells is well ahead of the appraisal schedule, but progress in all other areas is slow. The project will not fully disburse by the closing date, and GOI's request for an extension is expected. Cr. No. 682 Orissa Agricultural Development Project; US$20.0 million credit of April 1, 1977; Effective Date: June 28, 1977; Closing Date: December 31, 1983 Cr. No. 690 West Bengal Agricultural Extension and Research Project; US$12.0 million credit of June 1, 1977; Effective Date: August 30, 1977; Closing Date: September 30, 1982 Cr. No. 712 Madhya Pradesh Agricultural Extension and Research Project; US$10.0 million credit of June 1, 1977; Effective Date: September 2, 1977; Closing Date: September 30, 1983 Cr. No. 728 Assam Agricultural Development Project; US$8.0 million credit of June 30, 1977; Effective Date: September 30, 1977; Closing Date: March 31, 1983 Cr. No. 737 Rajasthan Agricultural Extension and Research Project; US$13.0 million credit of November 14, 1977; Effective D5ate: February 6, 1978; Closing Date: June 30, 1983 Cr. No. 761 Bihar Agricultural Extension and Research Project; US$8.0 million credit of January 6, 1978; Effective Date: May 2, 1978; Closing Date: October 31, 1983 Cr. No. 862 Composite Agricultural Extension Project, US$25.0 million credit of February 16, 1979; Effective Date (expected): December 14, 1979; Closing Date: December 31, 1984 These seven credits finance the reorganization and strengthening of agricultural extension services and the development of adaptive research capabilities in nine States in India. In areas where the reformed extension system is in full operaLion, field results have been very good, both in terms of adoption of new agricultural techniques and of increased crop yields. In Rajasthan, Assam, and Orissa, in particular, significant gains have been made under the projects. In West Bengal, where a change in government brought a review of the organizational principles underlying the new extension system and an accompanying hiatus in project implementation, a recent Cabinet deci- sion has reaffirmed the State Government's commitment to the project and revised implementation plans are under preparation. In Bihar and Madhya Pradesh, staff shortages, particularly in supervisory and managerial posts, have hampered project implementation, although progress in areas where  ANNEX II Page 14 of 17 regular extension visits are being made attests to the efficacy of the system itself. Finally, in Gujarat, Haryana and Karnataka, all covered under the Composite Agricultural Extension Project (which is not yet effec- tive), project irDlementation is still in the very early stages, although important early administrative and financial steps have been taken which should pave the way for effective operation of the reorganized extension system. Cr. No. 855 National Agriculture Research Project; US$27.0 million credit of December 7, 1978; Effective Date: January 22, 1979; Closing Date: September 30, 1983 While the initial sanctioning of research subprojects under this project was somewhat slower than expected, due to staff shortages in the Project Unit, the pace has picked up considerably in recent months. Commit- ment of funds to research subprojects in FY80 is expected to meet or even exceed appraisal estimates, although corresponding disbursements may lag somewhat behind the original estimates. Additions to the staff of the Project Unit are being recommended to expedite further progress under the project. Cr. No. 526 Drought Prone Areas Project; US$35.0 million credit of January 24, 1975; Effective Date: June 9, 1975; Closing Date: June 30, 1980 Overall progress of this project continues to be satisfactory. Implementation of most components is proceeding well. Dairying and dryland farming components show particular promise for the drought-prone areas. Cr. No. 680 Kerala Agricultural Development Project; US$30.0 million credit of April 1, 1977; Effective Date: June 29, 1977; Closing Date: March 31, 1985 Project implementation started slowly due to initial staffing and funding delays. The project has now gained momentum and the planting opera- tions, which were one season behind original schedule, have been rephased to make up for lost time. Cr. No. 871 National Cooperative Development Corporation (NCDC) Project; US$30.0 million credit of February 2, 1979; Effective Date: May 3, 1979; Closing Date: December 31, 1984 As of October, 1979, when the project was last reviewed, construc- tion of godowns had begun in the three participating States of Haryana, Orissa, and Uttar Pradesh. Consultants were being recruited to assist NCDC and State Cooperative Banks in strengthening their institutions. Initial project preparations have been completed on schedule; disbursements are therefore expected to follow the appraisal targets.  ANNEX II Page 15 of 17 Cr. No. 844 Railway Modernization and Maintenance Project; US$190.0 million credit of November 13, 1978; Effective Date: January 10, 1979; Closing Date: December 31, 1984 Credit 844 was designed to help the Indian Railways reduce manu- facturing and maintenance costs of locomotives and rolling stock and to improve their performance and availability. The project is still at an early stage of implementation but is progressing satisfactorily. Cr. No. 609 Madhya Pradesh Forestry Technical Assistance Project; US$4.0 million credit of February 26, 1976; Effective Date: May 17, 1976; Closing Date: December 31, 1981 A feasibility study financed under this Credit and completed in November 1979 has recommended the establishment of two mills, one for sawn- wood and one for pulp, as the basis of the development of a forest-based industry in Bastar district. Cr. No. 925 Uttar Pradesh Social Forestry Project; US$23.0 million credit of June 21, 1979; Effective Date: January 3, 1980; Closing Date: December 31, 1984 This project was designed to expand the social forestry program in Uttar Pradesh, to provide a source of energy to the villages, and supply raw materials to cottage industries. The project provides for large-scale tree plantation on 48,600 ha of public and village lands, primarily along roads, rails and canals, and on village common lands and degraded forest reserves. Cr. No. 610 Integrated Cotton Development Project; US$18.0 million credit of February 26, 1976; Effective Date: November 30, 1976; Closing Date: December 31, 1981 The project's progress remained very disappointing in all areas until the 1978 season, resulting in negligible disbursements. Due to renewed interests from GOI and the States, the project has now started to progress well. Short-term credits are increasing significantly, new processing units are being established in Haryana and Maharashtra, and plant protection activities have started progressing well. Ln. No. 1273 National Seed Project; US$25.0 million loan of June 10, 1976; Effective Date: October 8, 1976; Closing Date: June 30, 1981 Cr. No. 816 Second National Seed Project; US$16.0 million credit of July 17, 1978; Effective Date: December 20, 1978; Closing Date: December 31, 1984 These projects were designed to increase the availability of high quality agricultural seed, and cover nine States (four by Ln. 1273-IN and five by CR. 816-IN). The first project started slowly due to organizational  ANNEX II Page 16 of 17 difficulties and is almost two years behind schedule. Progress in the second project States is more satisfactory. The role of various organizations (National and State) in the production and processing of seed is being reviewed. Ln. No. 1335 Bombay Urban Transport Project; US$25.0 million loan of December 20, 1976; Effective Date: March 10, 1977; Closing Date: June 30, 1980 The bus procurement program supported by the project has proceeded on schedule, with all 700 bus chassis and bodies having been ordered and 589 already in service. Total fleet strength has increased from 1,530 buses at the inception of the project to 1,900 buses in September 1979, in accordance with appraisal estimates. Depot capacity expansion is lagging somewhat behind fleet expansion, but should match fleet size by early 1980. However, delays in construction of new workshop facilities have been more substantial and will not be fully recoverable. Traffic management civil works are also somewhat behind schedule, although efforts are being made to speed up the works program. Ln. No. 1394 Gujarat Fisheries Project; US$14.0 million loan and US$4.0 (TW) and million credit of April 22, 1977; Effective Date: Cr. No. 695 July 19, 1977; Closing Date: June 30, 1983 Cr. No. 815 Andhra Pradesh Fisheries Project; US$17.5 million credit ofJune 19, 1978; Effective Date: October 31, 1978; Closing Date: September 30, 1984 In Gujarat, harbor construction at Mangrol and Veraval are under way, and although some delays have been encountered, the project is progress- ing satisfactorily and no major problems are evident. In Andhra Pradesh, preliminary work on implementation is progressing satisfactorily, and harbor works at Visakhapatnam and Kakinada are scheduled to commence shortly. Cr. No. 685 Singrauli Thermal Power Project; US$150.0 million credit of April 1, 1977; Effective Date: June 28, 1977; Closing Date: December 31, 1983 Cr. No. 793 Korba Thermal Power Project; US$200.0 million credit of May 12, 1978; Effective Date: August 14, 1978; Closing Date: March 31, 1985 Ln. No. 1549 Third Trombay Thermal Power Project; US$105.0 million loan of June 19, 1978; Effective Date: February 8, 1979; Closing Date: March 31, 1984 Ln. No. 1648 Ramagundam Thermal Power Project; US$50.0 million loan and and Cr. US$200 million credit of February 2, 1979; Effective Date: No. 874 May 22, 1979; Closing Date: December 31, 1985  ANNEX II Page 17 of 17 Cr. No. 604 Power Transmission IV Project; US$150 million credit of January 22, 1976; Effective Date: October 22, 1976; Closing Date: June 30, 1981 Credit 685 assists in financing the first stage of the 2,000 MW Singrauli development which is the first of four power stations in the Government's program for the development of large central thermal power stations feeding power into an interconnected grid. The second such station, at Korba, is being financed under Credit 793. The National Thermal Power Corporation (NTPC) has been carrying out construction and operation of these power stations. Organization and staffing of NTPC is proceeding satisfactorily. Loan 1549 is supporting the construction of a 500 MW extension of the Tata Electric Companies' station, in order to help meet the forecast load growth in the Bombay area. Loan 1648 and Credit 874 sup- port the construction of the first three 200 MW generating units in Andhra Pradesh together with related facilities and associated transmission. All these large-scale thermal power projects are progressing satisfactorily. Under Credit 604, contracts aggregating about US$114 million have been ap- proved to date. Although this project suffered delays in preparation of technical specifications and evaluation of bids for highly sophisticated equipment, the project is now progressing satisfactorily. Cr. No. 572 Rural Electrification Project; US$57.0 million credit of July 23, 1975; Effective Date: October 23, 1975; Closing Date: December 31, 1980 Cr. No. 911 Rural Electrification Corporation II Project; US$175.0 million credit of June 21, 1979; Effective Date: October 17, 1979; Closing Date: March 31, 1984 Credit 572 consists of a tranche of rural electrification schemes which would cover about 140 rural electrification schemes. There are now thirteen State Electricity Boards (SEBs) eligible for onlending, compared with six at the time of appraisal. The project got off to a slow start, due principally to the need to adapt the specifications and tendering procedures to international competitive bidding, but the position has improved and the full amount of the Credit has been committed. Credit 911 would provide con- tinued support to the Rural Electrification Corporation's lending program, and help finance about 1,700 rural electrification schemes in fourteen SEBs, including the newly participating Uttar Pradesh SEB. The project is at an early stage of implementation, and preparation of bid specifications is progressing satisfactorily. Ln. No. 1473 Bombay High Offshore Development Project; US$150.0 million loan of June 30, 1977; Effective Date: October 20, 1977; Closing Date: December 31, 1980 The project is progressing satisfactorily. Gas and oil pipelines from Bombay High to shore were commissioned in June 1978. Most contracts for Phase III of Bombay High development have been laid, construction should be completed by mid-1980 and the loan should be fully disbursed by its original closing date.  ANNEX III Page I INDIA TAMIL NADU NUTRITION PROJECT SUPPLEMENTARY PROJECT DATA SHEET Section I: Timetable of Key Events (a) Time taken by the Borrower to prepare the project. Two years. (b) The agency which has prepared the project. Government of Tamil Nadu. (c) Date of first presentation to the Bank and date of the first mission to consider the project. April 1977; March 1978. (d) Date of departure of appraisal mission. July 30, 1979. (e) Date of completion of negotiations. February 29, 1980. (f) Planned date of effectiveness. August 15, 1980. Section II: Special Conditions (a) GOTN to carry out reviews of project execution, under terms of reference satisfactory to IDA, at the end of the first year of service delivery in a test block, at the end of the third year, after services have been introduced in about 70 blocks, and at the end of the final year of the project implementation period. Mid- term reviews to take into account experience with and on-going evaluation of mobile medical team system and other approaches to providing village-based health services and to be used as a basis for required adjust- ments to project design or implementation schedule (para 41(d));  ANNEX III Page 2 (b) GOTN to take all measures necessary to protect efficiency, level and quality of health and nutrition services and to avoid duplication of such services in the event that changes are introduced in the rural health system in project areas (para 36). (c) GOTN to adopt beneficiary selection criteria satisfactory to IDA for food supplement program (para 41(a)). (d) GOTN to prepare, for IDA review, curricula for project- supported training programs by August 31, 1980 (para 44). (e) GOTN to appoint a Deputy Director of Health for Training not later than August 31, 1980 (para 44). (f) GOTN to establish, by December 31, 1980, an Evaluation Advisory Panel to meet as necessary throughout the project period to advise on project evaluation (para 44). (g) GOTN to carry out, not later than June 30, 1981, a study of ways of improving selection, procurement and delivery of drugs and medicines for PHCs and HSCs (para 47).  INDIA TAMIL NADU NUTRITION PROJECT ANONHRA PRADESH2 PROJECT DISTRICTS 2 - I PSJ~IST I. I - AITF I olRL-1 55- 3 5,,, .~~~~~~ o~~,,o. so,,,,,, 1 CI-I~~~~~~~~~~ENGALPATTLJ DH ARMAPURI/ KA RIV A TA KA 7 Pncer C' _'POND/CHERRY C '' - . - hoe,, ~~~~~~~~~SOU TH ACOT -V > <-. C '5~~~~~~~~~~~~~~~~~1R H - PAL NI LCd RI 2 SAEM~~(I z 0 . . ___ ' 0/'FI BAR-PALL~~~~~~~~~~~~~~~~~~~~ARKA K'ERALZA / ~. THAN.AVUR - . ~~~~~~~~~P U DUK A MADUPI/ -V > ~~ ~~~~~~~~TIRU V~ E0. d4: o KANYAK~~~~~B AAHAUAM' C--  _____ ____ ____ ____ ____ ____ __ _ ____ IBRD 14748 INDIA TAMIL NADU NUTRITION PROJECT ANI2DHA PRADIFSH PROJECT DISTRICTS " ~~~~~ I> ~ ~ ~~~~~ T 5 5~~~~~~~~I15. 5 -550-05u ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ S . ....... _ o d d P P I M B~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Rsdo'r Z.,~,KAJIKAL 20.. J~~~~~~~~~L M j., 5"~~~ q~~~~~~~~~~~~~~~~Pdkto 7 S.~ /5~~~~~~~~HA I S~~~~~~~~~~~~~~~~~~IRU ,. UI '-P~~~~~~~~~~~~~~~~~~~7