Announcement of India Borrows Twenty-Five Million Dollars for an Industrial Development Project on January 23, 1978

. . FOR IMMEDIATE -' RELE.ASE . ' ' •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/37 JANUARY 23, 1978 INDIA BORROWS $25 MILLION FOR AN INDUSTRIAL DEVELOPMENT PROJECT The World Bank today announced the approval of a loan of $25 mill ion to assist industrial development in India in the State-sponsored public/joint sector. The loan, to be channeled through the Industrial Development Bank of India (IDBI) -- a development finance institution -- will meet the foreign exchange cost of investments in productive medium-scale industrial enterprises. l OB I i s the l a r gest s i ng 1e i ns t i tut i on a 1 source of i ndu s t r i a l f i - nance in India, accounting for approximately 5% of the annual industrial investment. It is also responsible for coordinating industrial investment • activities of other industrial finance institutions . The Bank loan will assist IDBI in carrying out industrial sector investment studies, and jn strengthening industrial finance institutions in various states. It will also enable IDBI to promote projects particularly in the less developed states in India. A major benefit will be the pooling of private and pubi ic capital and in establishing close working 1 inks between public and private sector partners. The loan complements previous operations of the Bank in support of the Industrial Credit and Investment Corporation of India and, through IDBI, the State Financial Corporations. The Bank loan to India will carry interest at the rate of 7.45% per annum. It wi 11 be for a maximum of 17 years, including three years of arace, to be adjusted according to the amortization schedule of subprojects. The Government will relend the proceeds to IDBI on the same terms. - 0 - • NOTE: Money figures are expressed in U.S. dollar equivalents. 1