MUMBAI, NOV 7: "I am overwhelmed by the process of reforms, particularly in the areas of energy and drinking water, initiated by the Vilasrao Deshmukh government. I feel the ice has been broken, which will help to revive as well as strengthen relations between the World Bank and Maharashtra government,'' Wolfensohn said after his hour-long breakfast meeting with Deshmukh at his official residence, Varsha.Regarding the decision of the government to trifurcate the Maharashtra State Electricity Board (MSEB) into three companies for power generation, transmission and distribution, Wolfensohn said it was a step in the right direction since it would improve the financial health of the organisation in a time-bound period.Wolfensohn said he was particularly impressed by the drastic changes made in rural drinking water supply schemes as well as the population control policy, both aided by the World Bank.During the Sena-BJP's rule, when the Government had requested the World Bank for financial assistance for rural drinking water supply schemes, it had said it would consider the proposal provided charges were levied on users. But the Sena-BJP did not follow the Bank's advice, and was subsequently refused financial assistance.The Bank's president today congratulated Deshmukh for submitting a white paper on the economy and for its implementation. ``The government has not only presented the white paper, but has taken concrete steps to implement the same to improve the financial situation of the state,'' he pointed out.Today's presentation to the Bank was made by Chief Secretary Arun Bongirwar. It dealt with fiscal management, water supply, roads, the Mumbai Urban Transport Project, and discussions revolving around the decision to unbundle MSEB.In a brief speech, Deshmukh hoped that in view of the large scale reforms initiated by his government in a short-span of one year, the World Bank would take a positive approach while considering the Rs 15,000 crore worth of proposals submitted for approval.``Since assuming office, my government has adopted policies and programmes to further strengthen the prime position of our state. We are aware that it will require strengthening of economic infrastructure sectors like power, roads, port development, irrigation, information technology and social infrastructure sectors. Since we have taken initiatives in each of these sectors, I am sure the World Bank will approve our proposals in the near future,'' Deshmukh said.Deshmukh urged Wolfensohn to bestow on his state the priority that was due to it, while considering financial assistance programmes. ``I am sure you will see that many of the concerns of the bank are being addressed to your satisfaction by the state government,'' he said.On the much-delayed Mumbai Urban Transport Project (II), Deshmukh suggested that the quantum of the loan be raised from $500-million to $500 million so that the project could be implemented in a better manner.On power reforms, the Chief Minister said while a cabinet decision has already been taken, the reform bill will be introduced in the legislature soon. ``We have taken decision to unbundle the board. The process of unbundling and transition to the new reformed structure will require help of from the World Bank. I feel that the World Bank should take up reform of Maharashtra power sector and of MSEB as one of the important programmes of the Bank in Maharashtra. If you approve in principle, we will make specific proposals for consideration, I am sure, looking to the size of our state, our place in the national economy, our past performance and our old relationship, it will be possible for you to sanction as many proposals as possible,'' he said.Besides Deshmukh, the meeting was also attended by Deputy Chief Minister Chhagan Bhujbal, Reserve Bank governor Bimal Jalan and senior officials from World Bank as well as state government.
