Conformed Copy - C2986 - Coal Sector Rehabilitation Project - Development Credit Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 2986 IN Development Credit Agreement (Coal Sector Rehabilitation Project) between INDIA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated March 19, 1998 CREDIT NUMBER 2986 IN DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated March 19, 1998, between INDIA, acting by its President (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) the Borrower and Coal India Ltd. (CIL), having satisfied itself as to the feasibility and priority of the Project described in Schedule 2 to this Agreement, has requested the Association to assist in the financing of the Project; (B) CIL has also requested the International Bank for Reconstruction and Development (the Bank) to provide assistance towards financing Parts A and B of the Project and by an agreement of even date herewith between the CIL and the Bank (the Loan Agreement), the Bank is agreeing to provide such assistance in an amount equal to five hundred thirty million dollars ($530,000,000) (the Loan); and (C) by an agreement of even date herewith between the Borrower and the Bank (the Guarantee Agreement), the Borrower is agreeing to guarantee the obligations of CIL in respect of the Loan and to undertake such obligations as are set forth in the Guarantee Agreement; and WHEREAS the Association has agreed, on the basis, inter alia, of the foregoing, to extend the Credit to the Borrower upon the terms and conditions set forth in this Agreement, the Loan Agreement and the Guarantee Agreement; Page 2 NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The