Excelsior Correspondent
JAMMU, June 11: The Central Government has agreed to refund entire amount the World Bank will sanction for relief and rehabilitation operations in Jammu and Kashmir including the first installment of Rs 1500 crores already approved for the State, which means that J&K would get the World Bank amount as free grant.
Official sources told the Excelsior that the Government of India has agreed to refund the entire amount to the World Bank, which the latter would provide to Jammu and Kashmir as assistance for rebuilding public infrastructure damaged during devastating floods in September 2014. The World Bank had approved Rs 1500 crores as first installment for the State recently. As World Bank sanctions the amount in dollars, it may reach around Rs 1600 crores in five years period, the duration fixed for release of the amount.
“As per the agreement reached between Government of India, World Bank and Jammu and Kashmir Government, the Centre stood guarantee to World Bank aid worth Rs 1500 crores to the State Government. It has agreed to return the entire amount due to the World Bank as per terms and conditions of the agreement agreed to by all three parties,” they said.
Sources said the grant from the World Bank would start pouring in as soon as the State Government submits project wise details to the World Bank. The State Government would prioritize the projects to be submitted for the World Bank grant on the basis of which the funds would flow from the global financial body.
“The State Government has almost finalized the projects, which it would submit to the World Bank for re-construction under its grant. The projects would be submitted soon to the World Bank after approval of the Government,” sources said, adding that only public infrastructure projects affected by devastating floods of September 2014 will be approved for grant by the world body. The World Bank doesn’t give assistance for rebuilding of private infrastructure.
According to sources, the Centre Government, which is signatory to tripartite agreement signed by World Bank, Centre and Jammu and Kashmir Government, has conveyed to both the Bank and the State that it would return the amount in installments as prescribed under the agreement to the Bank while the J&K Government will get it as assistance.
“Depending upon utilization and rebuilding capacity of Jammu and Kashmir Government, the World Bank can even increase the amount sanctioned by it provided that it was satisfied with expenditure by the State and proper utilizations,” sources said.
Prior to sanction of Rs 1500 crore amount, two high level Rapid Need Assessment teams of the World Bank had worked out as Rs 21,000 crores worth damage to official infrastructure in Jammu and Kashmir during September 2014 floods.
“Hopefully, the State Government would start receiving the World Bank grant in the next couple of months,” sources said.
Sources said the World Bank’s Rapid Need Assessment teams had visited different parts of Jammu and Kashmir along with top officers of the State to see for themselves the damage caused to Government infrastructure in the devastating floods. They prepared project wise details of the damages and finally adopted the figures of Rs 21,000 crores as damages and approved Rs 1500 crores worth assistance as first installment.
The World Bank can render more assistance for rebuilding public infrastructure damaged by the huge natural calamity all across the State but its Rapid Need Assessment Teams, which would review construction of the projects undertaken with the Bank’s grant, had to be satisfied that the amount was being utilized on approved projects properly and expeditiously, sources said.
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