Announcement of Sixty Million US Dollars Loan for Industry in India on October 28, 1971

I f\JTE L .RE [) D 1818 H STREET. N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Banlt Preas Release No. 71/81 Subject: $60.0 million loan fo1( · October 28, 1971 industry in India Industrial development in India will be assisted by a World Bank loan of $60.0 million to the Industrial Credit and Investment Corporation of India (ICICI), a development finance coapany providing •dium and long-term finance for Indian industry. The loan will help ICICI •et most of its expected import financing commitments over the next two years. Since its inception in 19SS, ICICI has made a substantial contribution to tile expansion in India's manufacturing output, exports and employment. ICICI's clients account for 100% of the Indian capacity in aluminum and automobiles, the bulk of PVC, 80% of textile machinery, 75% of cement and • 60% of paper. Estimates are that total exports by its clients during 1970 amounted to the equivalent of $160 million, or about 14.5% of total exports in the year. Projects financed by ICICI have led to the creation of 228,000 jobs. This. represents about 5% of industrial employment in factories in India having ov·er 25 workers or 11% of th•) employment created in Indian industry since 1955. The nw loan, ninth to be made by the Bank to ICICI, brings the Bank's net t~.~tal lendhag to ICICI to $260 million. From its founding in 19SS through the end ·of June 1971, ICICI approved financial assistance totaling the· equiva- lent of over $419 million. Economic and Institutional factors in India favor a steady growth in ICICI's operations during the next five years. ICICI has a considerable numoer of projects under consideration for foreign currency and rupee financing. Co~le•nting current •aaurea to increase its foreign exchange resources, ICICI is taking steps to replenish its rupee resD'1rces. The Bank loan to ICICI will bear interest at 7Ja, and will be guaranteed by the Govemment of \,ndia. Bapayments to the Bank will conform approximately • to repayments received:"h~,"-ICICI on its am-loans financed out of Bank funds which will not extend beyond lS years. -o-