Announcement of India Receives Three Hundred Fifty Million Dollars in Loans from World Bank and IDA for Agricultural Credit on February 25, 1982

) - ~ .. f 01< IMMfDIATf R.H.f A Sf 1 ; ,' ' .· ' • ' ~ . ·•_:·.····_o ,. ·.1···1.·:·.·11·a··.-.·.·.·· I ' C;: r; •.o r, ( Wcirld Bank_ .·. ,, 1,818 H Street, N.W., Washington, OJ:. 20433, U.S.A. ~,Telephone!' (_202) 477-1234 - 0 !i O'' /) SANK NEWS RELEASE ~O. 82/51 Contact: "Hugh Blackman <\ lOA NEWS, RELEASE NO. 82/36\) (202) 477-3879 February 25, l982 INDIA RECEIVES $350\ MILLION IN LOANS FROM WORLD BANK AND IDA FOR AGRICULTURAL CREDIT frtstitutions ·that lend to farmers in India will be provided with financial resources and' tech!licai assistance through a combined $350 million loan from the World Bank and its affiliate: for concessionary lending, the International Development.- Association (IDA). The World Bank loan is for $190 milli~n, the IDA credit $160 mi 11 i on • , "' · - l\ The Bank and IOA money will help finance a two-year program--through 'December, f983-..:.under which $2,086.2 mi11ion worth of agricultural investments will be refinanced. Lending by the credit institutions, such as tana development and commercia l banks, will be mainly for minor irrigation (includi,ng land development), 0 and also plantations and horticultu,.re, livestock, fisheries, markets, and storage 0 facilities. A training program for the staff of the agricuitural credi~(1nsttiuti~ns ~ is included in the program. ~ Refinancing for the institutions that lend to farmers. is the rest)onsibility of the Agricultural Refinance and Development Corporation,~(Shra Niketan, Dr. ,Annie Besant Road,. Worn, Bombay~460018, India, Cable: AGRIFINANS BOMBAY) .• Since 1969, the Wor.id Bank and its affiliate have made available to this ref~nance corporation a total of $.l,991 mi 11 io11 for 38 oroiects. The corporation provides finance for agricultural schemes it judges to be sqund and within a reasoncJbly compact area. It also helps to formulate such schemes, particularly in the less~developed Jndian states. The project's primary objective is to increase agricultural production. At full development, the annual value of the additional production is expected to be - , $680 ('mi 11 ion at 1980/81 farmgate prices. About 1.4 mi 11 ion farmers throughout India will benefit directly; about 60% wilJi, 1 be small farmers. A permanent increase in 1 employment is expected to be about 13 i~ mi 11 ion man-days a year. The overal 1 economic rate of return iS expected to be 44%. The World Bank loan to India is repayable over 20 years including five years of grace, at annual intefest of 11.6%. The IDA credit is repayable over 50 years including 10 years of grace; it is interest-free but carries a service charge of 3/4 of 1% a year to help cover IDA administrative costs. · NOTE: Money figures are expressed in U.S. dollar equivalents.