ADB may chip in with $ 200 million while the remaining $ 550 million will come from the Centre, States and NGOs.
World Bank is in talks with Government for this purpose. Loans worth $ 450 million would be provided for tsunami reconstruction from International Development Assistance (IDA), the soft lending arm of the bank, World Bank country director Michael Carter told sources in New Delhi.
India gets about $ 1 billion in soft loans through IDA annually. World Bank also provides IBRD loans for various infrastructure projects.
Of the $ 450 million, Carter said only a small portion would be from IDA exposure.
"Most of the funds will come through reallocation of the existing loans given to India," he said, adding there were some savings in the utilisation of existing loans due to the appreciation in exchange rate.
Apart from IDA loans, World Bank will give $ 2.5 million in grants for tsunami, he said. "Our assistance will mostly be for housing and livelihood, especially for fishermen".
World Bank's total assistance is at over $ 3 billion annually. "This fiscal (July-June 2004-05), our assistance may well exceed $ 3.5 billion," Carter said.
According to a joint assessment by World Bank, ADB and UN, India will require $ 1.2 billion for reconstruction work in tsunami-hit areas of Tamil Nadu, Kerala, Andhra Pradesh and Pondicherry.
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