Announcement of Education Project Aims at Expanding India’s Technical Labor Force on May 3, 1990

10R IMMUDIAlt RELEASE 'Norld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 BANK EWS RELEASE NO. 90/78 Contact: Richard Kollodge IA NEWS RELEASE NO. 90/70 (202) 477-4507 EDUCATION PROJECT AIMS AT EXPANDING INDIA'S TECHNICAL LABOR FORCE WASHINGTON, May 3, 1990 -- India will meet industry's growing demand for technicians, engineers and other highly skilled workers through a project designed to improve training programs for technicians. The World Bank is supporting the project with a $25 million loan, and the International Development Association (IDA) is providing a credit of SDR 178.2 million ($235 million). IDA is the World Bank affiliate that lends on concessional terms to the poorest countries. India has thousands of technical education institutions, but many of these offer programs that are not related to the needs of the country's industries and most are poorly equipped. Teachers at these institutions often lack adequate training. The $382.7 million project will strengthen training programs for technicians and reorient curricula toward industries' needs. Under the project, programs that offer instruction in new technologies will be introduced in about 230 institutions. About 280 polytechnics, which offer a variety of engineering degrees, will be equipped with new laboratory equipment and other facilities, and training will be provided to thousands of teachers. The project also includes measures to strengthen the management and operations of India's Bureau of Technical Education and enable the agency to introduce changes in curricula that reflect the changing and growing demands of industry. The Government of India and state governments are contributing about $123 million to the project. The World Bank loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.75 percent, linked to the cost of the Bank's borrowings. 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.