Financial Daily from THE HINDU group of publications
Saturday, May 03, 2003
Financial Daily from THE HINDU group of publications Saturday, May 03, 2003 |
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Industry & Economy
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Infrastructure World Bank official to visit aided projects in TN Our Bureau
CHENNAI, May 2 THE World Bank's Country Director for India, Mr Michael F. Carter, met the Chief Minister, Ms Jayalalithaa, on Friday and had a series of meetings with the Government officials. The visit, according to official sources, is one of routine appraisal.Apart from meetings with the Government officials, during his visit, Mr Carter is also expected to see some of the bank-assisted projects in the State and those that display a clear commitment to reforms. In particular, he is scheduled to visit Alandur Municipality, which abuts Chennai to the south, where a sewerage system has been implemented with funding by the residents. He is also expected to drive along the East Coast Road, which has been improved by a company jointly formed by the Tamil Nadu Government and the IL&FS, and which is a toll road. According to official sources, although Mr Carter's visit is not linked to the discussions that the Government has started with the World Bank for structural adjustment assistance, his view will form a major input for the bank's decision on extending the assistance. They point out that the quantum of assistance will be decided by the World Bank after detailed negotiations with the Government and after taking into account the State's medium-term fiscal plan, budget sustainability, the requirement of funds and the State's commitment to reforms. A decision on the structural adjustment facility is expected in about six months. The State Government is likely to ask for about Rs 3,000 crore to help it in its financial restructuring, especially of the public sector units. Separately, the Government has expressed its intention to approach the World Bank for assistance for various sectors including urban development and health. Different teams from the World Bank covering areas such as poverty alleviation, health, urban development and water supply have been holding discussions with the officials over the last few weeks to assess the State's requirement of funds. The Government has also approached the World Bank for a road sector project, which seeks to upgrade the East Coast Road, with suitable links and by-passes, to the southern part of Tamil Nadu. The Government is confident of signing this assistance programme in the next couple of months. The State Government is confident that it will be able to get funds from the World Bank as also other multi-lateral lending agencies as it is committed to reforms. The Government will point to the first tariff order passed recently by the Tamil Nadu Electricity Regulatory Commission and the fact that it intended to get out of manufacturing altogether, as proof of its commitment to take hard decisions and to carrying out reforms.
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