World Bank plans $1.5-bn investment in Indian energy sector
The World Bank expects to invest about USD 1.5 billion in the country's fast growing energy sector over the next two years, according to a top official.
New Delhi: The World Bank expects to invest about USD 1.5 billion in the country's fast growing energy sector over the next two years, according to a top official.
The multilateral lender, which has a long association with the Indian energy sector, has already put USD 4 billion in the segment.
"Our investment in energy sector is around USD 4 billion and another USD 1.5 billion is under preparation – means projects that are not finalised but are under the process of finalisation," World Bank's India Energy Team Leader (South Asia Sustainable Development) Ashish Khanna said.
He said that USD 1.5 billion would be extended to the energy sector "somewhere between now and 2014".
Pointing out that overall growth of the country's energy sector is rapid, Khanna said that from proportions perspective, the World Bank is not a major player in this segment.
"... if you look at the overall energy investments in India, which is roughly close to USD 15 billion every year, we are only about three to four per cent of investments done in last five years," he noted.
On World Bank assistance, Khanna said the entity brings in a lot of international knowledge on what India is grappling with and how other countries have resolved these issues.
"But often, you can't get cookie-cutter solutions... because local conditions are different. We help set up model institutions like NTPC and Power Grid which take forward energy development of the country.
"World Bank's role is in facilitation of dialogue and hand holding governments," he said.
The multilateral agency has supported the country's largest hydro-power plant at Nathpa Jhakri in Himachal Pradesh and would be providing financial assistance for the proposed Vishnugad Pipalkoti Hydro Electric Project in Uttarakhand.
Among others, the multilateral lender is also helping in improving power transmission and distribution in Haryana and Maharashtra, while it had extended a loan of USD 1 billion to state-run Power Grid Corporation of India in September, 2009.