Announcement of India Develops Technologies Aimed at Helping Industry on September 14, 1989

FOR IMMEDIAT1 RELAS1 World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. * Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 90/10 Contact: Richard Kollodge IDA NEWS RELEASE NO. 90/5 (202) 477-4507 INDIA DEVELOPS TECHNOLOGIES AIMED AT HELPING INDUSTRY WASHINGTON, September 14, 1989 -- As many as 1,200 industrial firms and a group of research institutions in India will benefit from a technology- development project being supported by the World Bank and its concessionary lending affiliate, the International Development Association (IDA). The Bank is providing a $145 million loan, and IDA a credit of SDR 44.2 million ($55 million). The project will support government efforts to remove bureaucratic obstacles to the importation of technologies and capital goods and will provide funds to four new venture-capital firms that will make investments in small, technologically innovative, private companies. Under the project, up to 15 technological institutions will be strengthened and will receive loans to finance equipment, facilities and services that will enable them to carry out research and technology-development activities that directly support India's industries. A fund will be set up to enable industries to commission research at the institutions. Some of the assistance for the research institutions is aimed at improving safety standards both in laboratories and in mines. These research undertakings are directly aimed at environmental concerns, including limiting effluents from tanneries and predicting metallurgical problems in major industrial power plants. A portion ($100 million) of the World Bank loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.74 percent, linked to the cost of the Bank's borrowings. Another portion ($45 million) is for 16 years, including seven years of grace, also with a 7.74 percent variable interest rate. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. The IDA credit is for 35 years, including 10 years of grace; it carries no interest, but has an annual charge of 0.75 percent on the disbursed balance and a variable charge of up to 0.5 percent (currently zero percent) on the undisbursed balance. Note: Money figures are in U.S. dollar equivalents. IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SDR amount of the IDA credit reflects the exchange rates existing at the time of the negotiation of the credit.