NEW DELHI: The visiting vice president of the World Bank D. Joseph Wood Thursday had wide ranging discussions with senior officials here on the Banks assistance program for India and future aid plan in the context of the June meeting of the Aid India Consortium.
Wood while expressing satisfaction with the structural adjust rent program and the economic policy reforms undertaken by the government is understood to have pressed for acceleration in the process of reforms.
Wood Thursday had talks with the cabinet secretary Naresh Chandra he principal secretary to the Prime Minister A.N. Verma the secretary in the department of economic affairs Montek Singh Ahluwalia the chief economic Consultant Ashok Desaj and the joint secretary in the Fund Bank division of the finance ministry N.P. Singh Wood was also scheduled to meet petroleum secretary Ashok Chandra Thursday but postponed it still Friday morning. Friday the World Bank vice president called on the finance minister Manmohan Singh besides holding talks with the secretaries of commerce power health environment and public enterprises.
In December India secured a structural adjustment loan of $500 million from the World Bank on conditions similar to the ones agreed with the International Monetary Fund (IMF) for the $2.2 billion standby facility. The Bank has also pledged to assist Indias National Renewal Fund being created with a view to providing a safety net for workers who may be displaced in the process of structural adjustment. The Bank has offered an assistance of about $500 million for the fund. But this is subject to the government working out an exit policy for the industry allowing closure of sick units.
In Thursday’s discussions the Bank is understood to have emphasized the need for an early formulation of the exit policy. The Government explained that already steps on the formation of such a policy with the trade unions were being made Wood who is the banks vice president in charge of the South Asian region would be presiding over the forthcoming meeting of the Aid India Consortium. His current visit here is being utilized for preparing the ground for the Consortium meeting as well. The prospects of aid flow to India during 1992-93 figured prominently in Thursday’s discussions Wood is also scheduled to visit Tokyo and Manila following his visit here. He is expected to hold discussions with Japan one of India’s major donors and the Asian Development Bank (ADB) on the prospects of aid flow. Out of the $500million structural adjustment loan sanctioned for India on December 5. India has already drawn $300 million. The balance of $200 million would be made available as the second tranche sometime in May this year following the presentation of the Union budget and a review of the structural adjustment program undertaken by the government.
Woods current visit would also provide an opportunity for discussions on the Banks lending program in specific sectors such as in petroleum power and environment. The assistance to the power sector is in a limbo following conditions laid down by the Bank including a minimum positive return of three per cent to the state electricity boards on their capital invested.
Article extracted from this publication >> January 24, 1992
