New Delhi, Oct 13 (IANS) The World Bank will extend loans worth $4.2 billion to India for three projects, the multilateral lender said Tuesday.
The pact was signed Tuesday by representatives of the central government, India Infrastructure Finance Co (IIFC), PowerGrid Corp and the World Bank.

Under the agreement, the bank will provide $2 billion for state-run banks, with IIFC receiving $1.195 billion to fund infrastructure projects, and PowerGrid Corp getting $1 billion to upgrade India’s power transmission system.

“Today’s support will help maintain credit growth and continued infrastructure investments in the country,” said Roberto Zagha, World Bank Country Director for India.

“Supporting infrastructure is particularly important during the current crisis, not just to sustain the domestic economy at a time of reduced global demand, but even more to lay the foundations for stronger future growth,” Zagha said.

Added IIFC chairman and managing director S.S. Kohli: “This loan will help IIFC increase the availability of long-term finance for infrastructure projects across a range of sectors including roads, power, airports, and ports.

“India’s infrastructure needs have been estimated at between $100-150 billion per year, with realizations well short of this target,” he said.