Buoyed by efficient use of structural adjustment loans given to Andhra Pradesh (AP), the World Bank will provide another $220 million loan to the State to further the reforms process even as it was considering sanctioning such loans to Tamil Nadu and Orissa as well.‘‘The second loan of $220 million will be ready by February 10,’’ World Bank country director Michael Carter said here on Thursday.Tamil Nadu and Orissa which have sought loans for structural reforms and their proposals were expected to be processed by June 2004.The structural adjustment loans would have five components—fiscal adjustment and management, power sector reforms, improving governance and investment climate. The bank was also considering a loan for improving the health sector in Rajasthan.The move is part of World Bank’s plans to double its loan sanctions to India. The total assistance from World Bank was around $1.5 billion last year and it was expected to be the same this year also. However, Carter said the figure would virtually double to $2.5-$3 billion from 2005.Elaborating on the success of the structural adjustment loan to AP, he said, ‘‘the State’s fiscal performance though not good in 2002-03, was now back on track after reforms.’’‘‘They have done a great deal and the performance was impressive in a number of respects. The State’s power sector was doing well and was reducing losses,’’ he added.
