Announcement of India Launches Petroleum-Transport, Vocational Training Projects on May 1, 1989

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. *Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 89/55 Contact: Leandro V. Coronel IDA NEWS RELEASE NO. 89/63 (202) 477-3641 INDIA LAUNCHES PETROLEUM-TRANSPORT, VOCATIONAL TRAINING PROJECTS WASHINGTON, May 1, 1989 -- India will use two loans from the World Bank and a credit from the International Development Association (IDA) totaling $620 million to launch a project designed to facilitate domestic transport of oil products and another project to bolster the pool of skilled workers needed by the country's growing economy. IDA is the World Bank affiliate that lends on concessional terms to the poorest countries. Petroleum Transport Project A World Bank loan of $340 million will help finance construction of an oil-products pipeline that will run for 1,454 kilometers from the Port of Kandla in Gujarat State to Bhatinda in the Punjab. A single-buoy mooring system will be built at Salaya, west of Kandla, to reduce ship-waiting time and increase capacity for crude oil-imports at the Koyali and Mathura refineries. Other components include new catalytic units designed to reduce the lead content of gasoline, digital control systems to improve the efficiency of pro- cessing operations in refineries, and gas turbines for power generation. The lubrication-oil manufacturing complex at the Haldia refinery will be expanded and a sulphur plant will be constructed at the same complex. Programs to conserve energy and optimize yields will be implemented at several refineries. Technical assistance and training will be provided to im- prove the operational and managerial efficiency of the Indian Oil Corporation (IOC), the country's largest oil refining and marketing company. The project supports the government's and IOC's strategy to meet future domestic demand for oil products by reducing transport costs, providing IOC with the means to respond quickly to changes in market demand, and strengthening IOC's operational capabilities. The project has an overall cost of $944 million. IOC is investing $594 million and the remainder of the financing will be covered by export and sup- pliers' credits. .../cont. -2- Vocational Training Project India will use another World Bank loan, for $30 million, and an IDA credit of SDR 189.2 million ($250 million) to increase industrial efficiency by expand- ing the pool of high-quality workers whose skills are relevant to the country's needs. This is the first vocational training project in India supported by the World Bank Group. Higher-quality and more relevant training for skilled and semi-skilled industrial workers is needed to sustain economic growth in India. This project is designed to improve the quality and efficiency of training for craftsmen and apprentices, expand the scope and relevance of advanced-skill training programs, and strengthen the planning and management of vocational training at the central and state levels. The project will pay special attention to training for women workers in the modern sector and "high-tech" trades. About 400 industrial training institutes will be modernized and re-equip- ped. Advanced training programs will be expanded by establishing 32 advanced vocational training system centers and extending existing centers. A training center for electronics, computers and robotics will be established. The 429.8 million project will receive financing totaling $149.8 million from the government. The two World Bank loans are for 20 years including five years' grace period, with a variable interest rate, currently 7.65 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 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 expressed 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.