Tuesday, June 21 2005 15:06 Hrs (IST) - World Time -

Bangalore: World Bank has promised to release soon $250 million loan assistance to Karnataka as part of the second instalment of the 1.1 billion loan approved for the State's economic restructuring plan, it was announced today (Jun 21, 2005).

Karnataka Deputy Chief Minister and Finance Minister Siddaramaiah addressing a press after presenting a review on on-going projects to the World Bank team headed by its India Director Michael Carter said the State also sought early release of third and fourth tranche of loan of $550 million.

The State has sought $250 million for implementing infrastructure development projects in its Municipal areas and $150 million loan each for its health and Panchayat reform programmes.

He said the World Bank team expressed overall satisfaction over the progress made in on-going projects and appreciated the performance on the first phase of the Rs 2,030 crore Karnataka State Highway Improvement Project.

Siddaramaiah however wanted the State to expedite works on rural water supply and sanitation for which the funding agency has provided Rs 1,030 crore loan assistance and community improvement projects involving Rs 670 crore assistance.

He said the World Bank team was also not satisfied with the progress made on the Rs 690 crore watershed development programme.

The team also expressed satisfaction over the fiscal performance of Karnataka, which has brought down fiscal deficit.