Document of

The World Bank

FOR OFFICIAL USE ONLY

C-/Z I qsA Z /Report No. P-4856-IN

MEMORANDUM AND RECOMMENDATION

OF THE

PRESIDENT OF THE

INTERNATIONAL DEVELOPMENT ASSOCIATION

TO THE

EXECUTIVE DIRECTORS

ON A

PROPOSED CREDIT OF SDR 108.6 MILLION (US$150 MILLION EQUIVALENT)

TO INDIA

FOR A

THIRD NATIONAL SEEDS PROJECT

August 1, 1988

This document has a restricted distribution and may be used by recipients only in the performanoe oftheir official duties. Its -voterts may not otherwise be disclosed without World Bank authorizatlon

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CURRENCY EQUIVALENTS

US$ 1 - Rupees (Rs) 13.5

WEIGHTS AND MEASURES

1 Hectare (ha) = 2.47 acres1 kilogram (kg) = 2.205 pounds

ACRONYMS AND ABBREVIATIONS

DOA - Department of AgricultureGoI - Government of IndiaCOS - Government of StateICAR - Indian Council for Agricultural ResearchICB - International Competitive BiddingMOA - Ministry of AgricultureNABARD - National Bank for Agriculture and Rural

DevelopmentNSC - National Seeds CorporationNSP - National Seeds ProgramNSPI - First National Seeds ProjectNSPII - Second National Seeds ProjectPB - Participating BankPMU - Project Management UnitSAU - State Agricultural UniversitySSC - State Seed Corporation

FISCAL YEAR

April 1 to March 31

FOR OFFICIAL USE ONLY

INDIA

THIRD NATIONAL SEEDS PROJECT

CREDIT AND PROJECT SUMMARY

Borrower: India, Acting by its President

Beneficiaries: States of Andhra Pradesh, Assam, Bihar, Gujarat,Karnataka, Maharashtra,, Madhya Pradesh, Orissa, Rajasthan,Uttar Pradesh and West Bengal; the National Bank forAgriculture and Rural Development (NABARD); and the IndianCouncil for Agricultural Research (ICAR).

Amount: SDR 108.6 million (US$150 million equivalent)

Terms: Standard, with 35 years maturity.

OnlendingTerms:

(ProjectComponent) (a) Investment Credit (US$ 30 million equivalent; GOI will

bear foreign exchange risk)

GOI to NABARD: Repayment of the principal in a lump sumat the end of 15 years at an interest rate of 7Z perannum.

NABARD to Participating Banks (PBs):Repayment over a maximum of 15 years, including a maximumof 3 years grace period for principal and interest at aninterest rate of 8% per annum for 80% of sub-loans madeto sub-borrowers.

PBs to Sub-borrowers: Repayment over a maximum of 15years, including a maximum of 3 years grace period forprincipal and interest at a minimum interest rate of12-1/2% per annum for 80Z of investment costs.

(b) Productive Support Grant Funds (USs 10 millionequivalent; OI will bear foreign exchange risk)

OI to State Governments: As part of Central Governmentassistance to States, on prevailing terms and conditions.

This document has a restricted distribution and may be used by recipients only in the ,erformanceof their official duties. Its contents may not otherwise be disclosed without World B&wx at'iCorization.

Financing Plan:

Sub-borrowers US$ 16.5 millionParticipating Banks USS 7.4 millionGOI US$ 2.1 millionState Governments US$ 1.5 millionIDA US$ 150.0 million

Total US$ 177.5 million

Economic Rate of Return: 32X (for the project component)

Staff Appraisal Report: Report No. 6982-IN

Map: IBRD 19960

MEMORANDUM AND RECOMMENDATION OF THE PRESIDENTOF THE INTERNATIONAL DEVELOPMENT ASSOCIATION

TO THE EXECUTIVE DIRECTORSON A PROPOSED CREDIT TO INDIAFOR A THIRD NATIONAL SEEDS PROJECT

1. The following memorandum and recommendation on a proposed developtnentcredit of SDR 108.6 illion (US$150 million equivalent) to India is submittedfor approval. The proposed credit would be on standard IDA terms with 35years maturity, and would helo finance the Third National Seeds Project.

2. Background. Agriculture in India accounted for about 35% of GDP and25% of exports in 1986, and employed about 65% of the labor force.Agricultural output has grown steadily during the past decades, with par-ticularly impressive gains in foodgrain production which amounted to about150 million tons in 1985/86, compared with 121 million tons in 1975/76. Thishas been possible as a result of substantial increases in the area underirrigation, increased use of high yielding varieties, fertilizer and improvedfarming practices. However, the continuing increase in demand for food inthe country requires that agricultural productivity and production beincreased substantially in the medium to long term. The evolution of Indianagriculture has also reached a stage where special attention is being givento rainfed agriculture, in addition to irrigation development, to increasefood production. Also, greater emphasis is being given to expanding produc-tion of oil-seeds, pulses and horticultural crops and sorghum and milletswhich are the staple diet of the rural poor. It is clear therefore thatthere is need for continuing improvements in the critical support services toagriculture if the future challenges facing Indian agriculture are to be met.In this respect, good quality seed is a vital agricultural input and theavailability and quality of seeds of suitable varieties will be key deter-minants to increasing agricultural productivity.

3. A major seed production program, "National Seed Program" (NSP), waslaunched in the mid-1970s, based on the concept of a successful Bank Groupassisted project in Uttar Pradesh. The main emphasis of NSP was on creatinga national institutional framework for support and coordination of all facetsof production, storage, marketing and quality control of certified seeds.One important feature of the program was the formulation of two Bank assistedNational Seeds Projects (NSP I and NSP II) which, inter alia, establishedState Seeds Corporations (SSCs) in nine states to take over from the stateDepartments of Agriculture (DOA) and the National Seeds Corporation (NSC) theresponsibilities for the production and handling of seed in their respectivestates. NSP I and to a lesser extent NSP II were implemented considerablybehind schedule, particularly with respect to construction of physicalinfrastructure, though by the extended Loan/Credit closing of these projectsmost of the intended civil works were completed. The NSP concept wasexpanded to cover other states and currently there are SSCs in 13 states.

4. However, while the growth in the seed industry has been significant,an effective and efficient seed industry has not yet fully evolved in India.The public sector' B role in the industry is conotrained by: (a) the failureto develop public corporations along commercial lines; (b) insufficientmanagerial authority in these corporations; and (c) government interventionin their operations, pricing and marketing decisions. In addition, there is

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significant potential for private sector involvement in the industry on alarger scale in an operating environment which has become increasinglyfavorable for private initiative in recent years. In order for the industryto perform more effectively there is a clear need for a realignment in itsstructural and institutional framework, aimed at creating financially strong,independent and business oriented public seed corporations and encouraging anexpanded role for the private sector.

5. Rationale for IDA Involvement. The project reflects the Bank Group'sassistance strategy to support the Government of India's (GOI) efforts coimprove the efficiency of key services and to adopt those policies which bestcontribute to a resilient agricultural production environment in whichfarmers can efficieatly respond to emerging market opportunities. IDA participation would assist GOI efforts to undertake the significantadministrative, institutional and financial reforms needed to improve themanagement and efficiency of the public sector seed corporations, consolidateearlier investments made under Bank Group assisted projects, enhance privatesector involvement, and foster overall competitiveness and efficiency in theindustry. Through these efforts, the project would help meet the farmers'requirements throughout the country for good quality seed of suitablevarieties.

6. Project Objectives. Key objectives under the proposed project wouldbe to promote "ve development of a market responsive, financially viable seedindustry. The emphasis would be on reorienting the operations of selectedpublic sector seed corporations along commercial lines in order to improvetheir financial viability and long-term sustainability, encouraging greaterprivate initiative by providing investment .-nds, and developing the institu-tional environment conducive to the long term growth of the industry.

7. Project Description. The proposed funding would consist of a projectcomponent (US$68 million) and a program component (US$110 million). Theproject component would be in two parts. Part one (US$54 million) would be aline of investment credit channelled thro.'gh the National Bank forAgricultural and Rural Development (NABARD) and eligible Participating Banks(PBs) which would finance seed production (farm development), processing andassociated storage facilities in public sector seed corporations and privatesector seed companies. Part two (US$14 million) would directly financeequipment and limited operating expenses and consultancy services for TheIndian Council for Agricultural Research's (CAR) variety developmentprograms, breeder and foundation seed farm development in State AgriculturalUniversities (SAUs), infrastructure necessary for seed industry regulationand quality control, equipment for promoting on-farm seed cleaning, consult-ancy services aimed at financial and management strengthening of publicsector corporations, and training to enhance the managerial and technicalskills of managers in the industry.

8. The program component (US$110 million) which would become availablefor disbursement in 3 stages would support a series of institutional andadministrative reforms aimed at improving productivity and operationalefficiency of about 13 public sector corporations. These reforms byemphasizing autonomy of management, financial and institutional strengtheningand the progressive phasing out of government financial support would aim toreorient the operations of these public sector corporations along commerciallines, leading to the restoration of their financial viability and long termsustainability as business entities. The release of funds under the program

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component would be structvtrd to recognize -ritical steps taken by GOI andthe State Governments (GOSs) to first, appoint suitable consultants to reviewthe financia. structure and operational procedures of their respectivecorporations; second, draw up an action plan for each seed corporation to berecorded in an Action Plan Implementation Agreement (APIA) between NSC/SSCsand GOI/GOSs acceptable to IDA, specifying tile corrective measures to beundertaken to address key administrative and institutional weaknesses iden-tified by the consultants; and third, to implement the APIA as scheduled.The conditions for release of the program component are specified in para 11.Funds under the program component would be used to finance imports of itemsneeded for the agricultural sector consisting mainly of agr.cuitural inputs(including pesticides), veterinary medicines, animal feed and, petroleum andpetroleum products. The latter imports are destined for end-use in theagricultural sector. Annual diesel fuel use by tractors and pumpsets iscurrently estimated at 4 million tonnes (approximate import value of aboutUS$700 million) and is expected to increase by about 2-3% annually. India'sdiesel requirements are either imported directly, or refined from petroleumimports.

9. The project would be implemented by a Project Management Unit (P?Q)under the overall direction of the Ministry of Agriculture (MOA) and isexpected to be carried out over 6 1/2 years. The total cost of the projectis estimated at US$177.5 million equivalent. A breakdown of costs and thefinancing plan are shown in Schedule A. Amounts and methods of procurementand of disbursements, and the disbursement schedule are shown in Schedule B.A timetable of key project processing events and the status of Bank groupoperations in India are given in schedules C and D, respectively. A map isattached. The Staff Appraisal Report No. 6982-IN is being distributedseparately.

10. Agreed Actions. GOI and the state Governments (GOSs) have agreed onthe following actions: (a) to carry out a review by suitable consultantsof the financial and management structure and operating procedures of seedcorporations receiving funds under the credit and the drawing up of suitableaction plans to be recorded in a APIA .atisfactory to IDA addressing areas ofweaknesses; (b) following the consultants' review and as required in theAPIA, financially restructure tbeir respective corporations and allow thecorporations to exercise their autonomy in pricing, production and managementdecisions; (c) realign the roles of the public sector seed institutions asnecessary to rationalize seed production activities; (d) allow the applica-tion of stringent loan approval criteria by the PBs to ensure viability ofproposed investments; and (e) provide appropriate staffing, reporting andauditing requirements under the project.

11. In addition, GOI has also agreed that the program component wouldbecome available for disbursement in 3 stages: (a) the first of US$40 millionon: (i) appointment of the consultant to the PMU; and (Tii commencement ofconsultant reviews of at least 3 SSCs and NSC; (b) the second of US$35 mil-lion on: (i) completion of consultant reviews of at least 3 SSCs and NSCand implementation of resultant action plans in a manner satisfactory to IDA;and (ii) commencement of consultant reviews of at least 5 additional SSCs;and (c) the third of US$35 million on: (i) completion of consultant reviewsof the 5 SSCs referred to in (b)(ii) above and satisfactory progress inimplementation of the action plans by all the corporations which have com-pleted the consultant reviews; and (ii) commencement of consultant reviewsof all remaining participating corporations. The second and third stages of

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the program component are expected to become available for lisbursementapproximately eighteen months and thirty-six months after the first.

12. Benefits. The main benefits from the project would be the developmentof an efficient seed industry through the creation of financially self sus-taining and market responsive public sector corporations, and the encourage-ment of greater private initiative in the industry. The financial independ-ence of public sector seed corporations would also reduce and ultimatelyeliminate the need for GOI/GOSs budgetary outlays to sustain these institu-tions in the future. Economic benefits from the project are expected fromthe increases in agricultural production and productivity as a result of theavailability of good quality seed. Directly quantifiable benefits wouldresult from the production of wheat, rice, maize, jowar (sorghum), baira(millet), gram, soyabeans, groundnuts and mustard from improved certifiedseed produced by the public sector corporations. The project is expected tohave a direct impact on poverty alleviation As many of the users of projectproduced improved seed would be small farmers. The internal economic rate ofreturn of the project component is 32%.

13. Risks. The main risk relates to the project's reform objectives forthe corporations considered essential for their financial viability and longterm sustainability as business entities responsive to farmer needs. Thesereforms will require very substantial measures to be taken by both GOI andthe GOSs. The program component has been designed and structured to supportiOI's efforts to ensure the GOSs' commitment to implement the neccssaryreforms. In addition, to allow for delays that may arise as a result of firmapplication of onlending conditions based on financial viability, projectimplementation has been scheduled over 6 1/2 years.

14. Recommendation. I am satisfied that the proposed credit would complywith the Articles of Agreement of the Association and recommend that theExecutive Directors approve the proposed credit.

Barber B. ConablePresident

AttachmentsWashington, D.C.July 28, 1988

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Schedule A

INDIA

THIRD NATIONAL SEEDS PROJECT

Estimated Costs and Financing Plan

Estimated Cost: a/

-------USS Million--Local Foreign Total

A. Investment Credit 37.1 2.8 39.9B. Productive Support

1. Variety Development 3.6 0.3 3.92. Breeder and Foundation

Seed Production 1.0 0.1 1.13. Regulatien and Quality

Control 3.7 0.5 4.24. Seed Cleaning on Farmers' 0.2 - 0.2

Fields5. Institutional Strengthening

and Training 0.7 0.3 1.0

Subtotal 8 9.2 1.2 10.4

Physical Contingencies 3.3 0.2 3.5Price Contingencies 13.2 0.5 13.7

C. Program Component - 110.0 110.0

Total Project Costs 62.8 114.7 177.5

Financing Plan:

-- …US$ MillionLocal Foreig Total

Project ComponentSub-borrowers 15.3 1.2 16.5Participating Banks 7.0 0.4 7.4GOI 1.8 0.3 2.1State Governments 1.1 0.4 1.5IDA 37.6 2.4 40.0 b/

Program ComponentIDA - 110.0 110.0Total T2.8 114.7 177.5

a/ Includes taxes and duties amounting to $1.4 million.

bI Including retroactive financing of up to US$3.0 million for expendituresincurred after September 1, 1987.

Schedule BPage 1

INDIA

THIRD NATIONAL SEEDS PROJECT

Procurement Method (For the Project Component)

US$ MillionTotal

LCB Other Cost

Expenditures under Investment Credit 53.9 a/ 53.9(29.9) (29.9)

Productive SupportCivil Works and Farm Development 2.0 0.4 2.4

(1.3) (0.3) (1.6)Machinery and Equipment 5.6 0.9 6.5

(4.0) (0.6) (4.6)Vehicles 2.0 2.0

(1.4) (1.4)Consultancies 0.8 0.8

(0.8) (0.8)Training 0.7 0.7

(0.7) (0.7)

Travel Expenses and Office Support 1.2 1.2Services (1.0) (1.0)

9.6 57.9 67.5(6.7) (33.3) (40.0)

Note: Figures in parenthesis are the respective amounts to be financed by IDA.

a/ Contracts under the Investment Credit component are expected to beindividually small (estimeted to cost less than US$ 5 million each) andwould be procured following established commercial practices of thee*-b-borrowers.

Procurement Method (for the Program Component)

Procurement would be through ICB but with the following majorexceptions:

(i) subject to prior approval from IDA, procurement of commonly tradedcommodities would be undertaken through organized internationalcommodity markets or other chsnnels of competitive procurementacceptable to IDA in accordance with procedures satisfactory to IDA;

(ii) contracts for goods estimated to cost less than US$ 5 million each maybe awarded on the basis of the normal procurement procedures of thepurchasers of such goods acceptable to IDA.

Both private and public sector imports would be eligible for financing.

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Schedule _

Disbursements

Category Amouat Z(us$ Millior5

Line of Credit 29.9 OOZ (of NABARD's refinancingto PBs)

Productive Support

Civil Works andFarm Development 1.6 70% (of expenditures)

Machinery and equipment 6.0 100% foreign expenditures andand Vehicles l00O ex-factory costs or

70% (other local expenditures)

Travel Expenses andOffice Support Services 1.0 80% (of expenditures)

Consultancies & Training 1.5 100% (of expenditures)

Program Component

Imports of agriculturalinputs (includingpesticides), veterinarymedicines, animal feedand petroleum andpetroleum products 110.0 100Z (of expenditures)

150.0

Estimated IDA Disbursements

IDA Fiscal Year89 90 91 92 93 94 95

-- (US$ Million)- ----

Annual

Project Component 3 2 5 6 8 8 8Program Component 40 - 35 35 - - -

Cumulative 43 45 85 126 134 142 150

Schedule C

INDIA

THIRD NATIONAL SEEDS PROJECT

Timetable of Key Project Processing Events

(a) Time taken to prepare 2 years

(b) Prepared by: GOI, GOSs, NSC and SSCs

(c) First Bank mission: September, 1985

(d) Appraical mission departure: July 17, 1987

(e) Negotiations: May 17, 1988

(f) Planned Date of Effectiveness: October 15, 1988

(g) List of relevant PCRs and PPARs: Report No. 2551 of June 1979, thePCR of the Terai Seeds Project(Loan No. 614) and Report No. 6836of June 1987 the joi,at PCR of NSP I& NSP II (Loan 1273 &'md Credit 816,respectively).

ScheduLe 0Page 1 of 4

THE STATUS OF BANK CROUP OPERATIONS IN INDIA

A. STATEMENT OF BANK LOANS AND IDA CREDITS(As of March 31, 1988)

US$ millionLoan or Fiscal (Net of Cancellations)Credit Yeat ofNo. Approval Purpose Bank IDA 1/ Undisbursed 2/

61 Loans/ 3,134.2 -124 Credits fully disbursed - 7,800.5 -

842-IN 1979 Bombay Water Supply II - 196.0 10.281648-IN 1979 Ramagundam Thermal Power 50.0 - 1.86963-IN 1980 Inland Fisheries - 20.0 3.68981-IN 1980 Population II - 46.0 4.931003-IN 1980 Tamil Nadu Nutrition - 32.0 4.341011-IN 1980 Cujarat Irrigation II - 175.0 34.501012-IN 1980 Cashewnut - 22.0 7.151027-IN 1980 Singrauli Thermal II - 300.0 19.151034-IN 1980 Karnataka Sericulture - 54.0 5.711046-IN 1980 Rajasthan Water Supply & Sewerage - 80.0 22.841053-IN 1980 Farakka Thermal Power - 225.0 10.821887-IN 1980 Farakka Thermal Power 25.0 - 25.301897-IN 1981 Kandi Watershed and

Area Development 30.0 - 6.801072-IN 1981 Bihar Rural Roads - 35.0 4.331078-IN 1981 Mahanadi Barrages - 83.0 13.341082-IN 1981 Madras Urban Development II - 42.0 4.541108-IN 1981 M.P. Medium Irrigation - 140.0 31.211116-IN 1981 Karnataka Tank Irrigation - 54.0 12.261125-IN 1981 Hazira Fer-ilizer Project - 399.1 24.561138-IN 1981 M.P. Agricultural Ext. II - 37.0 11.311146-IN 1981 National Cooperative

Development Corp. II - 125.0 8.401172-IN 1982 Korba Thermal Power Project II - 400.0 109.171177-IN 1982 Madhya Pradesh Major Irrigation - 220.0 109.421178-IN 1Q82 West Bengal Social Forestry - 29.0 14.661185-IN 1982 Kanpar Urban Development - 25.0 4.552076-IN 1982 Ramagundam Thermal Power II 300.0 - 115.761219-IN 1982 Andhra Pradesh Agricultural Ext. - 6.0 2.592123-IN 1982 Refineries Rationalization 200.0 - 8.362165-IN 1982 Rural Electrification III 304.5 - 32.731269-IN 1982 Kallada Irrigation - 60.0 3.742186-IN 1982 Kallada Irrigation 20.3 - 15.471280-IN 1983 Gujarat Water Supply - 72.0 58.121286-IN 1983 Jammu/Kashmir and

Haryana Social Forestry - 33.0 i7.901288-IN 1983 Chambal Madhya Pradesh

Irrigation II - 31.0 10.031289-IN 1983 Subernarekha Irrigation - 127.0 49.862205-IN 1983 Krishna-Godavari Exploration 165.5 - 30.181299-IN 1983 Railways Modernization &

Maintenance II - 200.0 35.852210-IN 1983 Railways Modernization &

Maintenance II 200.0 - 197.04

Schedule D-10- Page 2 of 4

US$ million

Loan or Fiscal (Net of Cancellations)

Credit Year ofNo. Approval Purpose Bank IDA 1/ Undisbursed 21

2241-IN 1983 South Bassein Gas Development 139.3 - 16.461319-IN 1983 Haryana Irrigation II - 150.0 65.901332-IN 1983 U.P. Public Tubewells II - 101.0 56.021356-IN 1983 Upper Indravati Hydro Power - 170.0 120.38

2278-IN 1983 Upper Indravati Hydro Power 156.4 - 156.011369-IN 1983 Calcutta Urban Development III - 147.0 122.102283-IN 1983 Central Power Transmission 250.7 - 230.91

2295-IN 1983 Himalayan Watershed Management 46.2 - 39.031383-IN 1983 Maharashtra Water Utilization - 32.0 18.822308-IN 1983 Maharashtra Water Utilization 22.7 - 22.642329-IN 1983 Madhya Pradesh Urban 24.1 - 13.891397-IN 1984 Orissa Irrigation II - 105.0 54.351424-IN 1984 Rainfed Areas Watershed Dev. - 31.0 37.591426-IN 1984 Population III - 70.0 59.401432-IN 1984 Karnataka Social Forestry - 27.0 18.22

2387-IN 1984 Nhava Sheva Port 250.0 - 129.622393-IN 1984 Dudhichua Coal 151.0 - 107.342403-IN 1984 Cambay Basin Petroleum 242.5 - 176.682415-IN 1984 Madhya Pradesh Fertilizer 203.6 - 77.63

1454-IN 1984 Tamil Nadu Water Supply - 36.5 34.96SF-12-IN 1984 Tamil Nadu Water Supply - 36.5 48.971468-IN 1984 Periyar Vaigai II Irrigation - 17.5 2.46SP-16-IN 1984 Periyar Vaigai II Irrigation - 17.5 18.471483-IN 1984 Upper Ganga Irrigation - 125.0 136.871496-IN 1984 Gujarat Medium Irrigation - 172.0 144.882416-IN 1984 Indira Sarovar Hydroelectric 157.4 - 152.58SF-20-IN 1984 Indira Sarovar Hydroelectric - 129.8 168.54.2417-IN 1984 Railways Electrification 280.7 - 207.50

2442-IN 1984 Farakka II Thermal Power 300.8 - 270.092452-IN 1984 Fourth Trombay Thermal Power 135.4 - 71.08

1502-IN 1984 National CooperativeDevelopment Corporation III - 220.0 231.70

1514-IN 1985 Kerala Social Forestry - 31.8 29.771523-IN 1985 National Agric. Extension I - 39.1 47.691544-IN 1985 Bombay Urban Development - 138.0 156.612497-IN 1985 Narmada (Gujarat) Dam and Power 200.0 - 200.001552-IN 1985 Narmada (Gujarat) Dam and Power - 100.0 110.571553-IN 1985 Narmada (Gujarat) Canal - 150.0 187.561569-IN 1985 Second National Agricultural Ext. - 49.0 51.88 *

1611-IN 1985 National Social Forestry - 165.0 183.581613-IN 1985 Indira Sarovar Hydroelectric - 13.2 17.202498-IN 1985 Jharia Coking Coal 248.0 - 215.452505-IN 198' Maharashtra Petrochemical 300.0 - 184.822534-IN 1985 Second National Highway 200.0 - 176.382544-IN 1985 Chandrapur Thermal Power 300.0 - 254.752555-IN 1985 Rihand Power Transmission 250.0 - 164.642582-IN 1985 Kerala Power 176.0 - 174.191619-IN 1986 West Bengal Minor Irrigation - 99.0 139.971621-IN 1986 Maharashtra Composite Irrigation - 160.0 219.191622-IN 1986 Kerala Water Supply and Sanitation - 41.0 52.531623-IN 1986 West Bengal Population - 51.0 64.281631-IN 1986 National Agricultural Research II - 72.1 86.092629-IN 1986 Industrial Export Dev. Finance 90.0 - 78.44

Schedule D-11- Page 3 of 4

US$ millionLoan or Fiscal (Net of Cancellatinn'qlCredit Year ofNo. Approval Purpose Bank IDA 1/ Undisbursed 2/

2630-IN 1986 ICICI-Indus. Exp. Dev. Finance 160.0 - 142.051643-IN 1986 Gujarat Urban - 62.0 75.722653-IN 1986 NABARD I 375.0 - 116.652660-IN 1986 Cement Industry 165.0 - 151.782661-IN 1986 ICICI - Cement Industry 35.0 - 30.571665-IN 1986 Andhra Pradesh II Irrigation - 140.0 176.882662-IN 1986 Andhra Pradesh It Irrigation 131.0 - 131.002674-IN 1986 Combined Cycle Power 485.0 - 429.072729-IN 1986 Cooperative Fertilizer 150.2 - 48.522730-IN 1986 Cooperative Fertilizer 152.0 - 89.211737-IN 1987 Bihar Tubewells - 68.0 76.432769-IN 1987 Bombay Water Suppl7 &

Sewerage III 40.0 - 40.001750-IN 1987 Bombay Water Supply &

Sewerage III - 145.0 136.321754-IN 1987 National Agric. Extension III - 85.0 98.291757-IN 1987 Cujarat Rural Roads - 119.6 133,871770-IN 1987 National Water Management - 114.0 120.782785-IN 1987 Oil India Petroleum 140.0 - 131.862796-IN 1987 Coal Mining & Quality Improvement 340.0 - 285.542813-IN 1987 Telecommunications IX 345.0 - 345.002797-IN 1987 Uttar Pradesh Urban Development 20.0 - 20.001780-IN 1987 Uttar Pradesh Urban Development - 130.0 141.062827-IN 1987 Karnataka Power* 330.0 - 330.002844-IN 1987 National Capital Power 485.0 - 485.002845-IN 1987 Talcher Thermal 375.0 - 375.002846-IN 1987 Madras Water Supply 53.0 - 53.001822-IN 1987 Madras Water Supply - 16.0 17.342886-IN 1988 Drought Assistance 150.0 - 94.721852-IN 1988 Drought Assistance - 200.0 37.532893-IN 1988 National Dairy II* 200.0 - 200.001859-IN 1988 National Dairy II* - 160.0 168.14

Total 12,685.5 15,005.2of which has been repaid 1,855.9 377.1

Total now outstanding 10,829.6 14,628.1Amount Sold 133.8of which has been repaid 133.8 - -

Total now held by Bank and IDA 3/ 10,829.6 14,628.1

Total undisbursed (excluding *) 6,522.31 4,350.01

1/ IDA Credit amounts for SDR-denominated Credits are expressed in terms of theirUS dollar equivalents, as established at the time of Credit negotiations and assubsequently' presented to the Board.

2/ Undisbursed amounts for SDR-denominated IDA Credits are derived from cumulativedisbursements converted to their US dollar equivalents at the SDR/US dollar exchangerate in effect on March 31, 1988, while original principal is based on the exchangerate in effect at negotiations. This accounts for the fact that in some cases, theundisbursed balance as shown in US$ equivalent is higher than the original principal.

3/ Prior to exchange adjustment.

* Not yet effective.

-12- SCHEDULE DPage 4 of 4

B. STATEMENT OF IFC INVESTMENTS(As of Marzh 31, 1988)

Fiscal Amount (US$ million)Year Company Loan Equity Total

1959 Rcpublic Forge Company Ltd. 1.5 - 1.51959 Kirloskar Oil Engines Ltd. 0.8 - 0.81960 Assam Sillimanite Ltd. 1.4 - 1.41961 K.S.B. Pumps Ltd. 0.2 - 0.21963-66 Precision Bearings India Ltd. 0.6 0.4 1.01964 Fort Gloster Industries Ltd. 0.8 0.4 1.21964-75-79 Hahindra Ugine Steel Co. Ltd. 11.8 1.3 13.11964 Lakshmi Machine Works Ltd. 1.0 0.3 1.31967 Jayshree Chemicals Ltd. 1.1 0.1 1.2-1967 Indian Explosives Ltd. 8.6 2.9 11.51969-70 Zuari Agro-Chemicals Ltd. 15.2 3.8 19.01976-87 Escorts Limited 15.9 - 15.91978 Housing Development Finance Corp. 4.0 1.6 5.61980 Deepak Fertilizer and

Petrochemicals Corporation Ltd. 7.5 1.2 8.71981 Coromandel Fertilizers Limited 15.9 - 15.91981-86 Tata Iron and Steel Company Ltd. 52.4 - 52.41981 Mahindra, Mahindra Limited 15.0 - 15.01981 Nagarjuna Coated Tubes Ltd. 1.5 0.3 1.81981-86/87 Nagarjuna Signode Limited 2.3 0.3 2.61981 Nagariuna Steels Limited 3.5 0.2 3.71982 Ashok Leyland Limited 28.0 - 28.01982 The Bombay Dyeing and

Manufacturing Co. Ltd. 18.8 - 1-8.81982 Bharat Forge Company Ltd. 15.9 - 15.91982 The Indian Rayon Corp. Ltd. 14.6 - 14.61984-86 The Gwalior Rayon Silk Manu-

facturing (Weaving) Co. Ltd. 16.0 - 16.01985 Bihar Sponge 16.7 0.7 17.41985 Bajaj Auto Ltd. 23.9 - 23.91985 Modi Cement 13.2 - 13.21985 India Lease Development Ltd. 5.0 0.3 5.31986 Larsen and Toubro Ltd. 21.8 - 21.81986 India Equipment Leasing Ltd. 2.5 0.4 2.91986 Bajaj Tempo Limited 30.5 - 30.51986 The Great Eastern Shipping

Company Ltd. 8.0 2.0 10.01987 Gujarat Narmada Valley Fertilizer 38.9 - 38.91987 Hero Honda Motors Ltd. 7.9 - 7.91987 Wimco Limited 4.7 - 4.71987 Titan Watches Limited 15.6 0.4 16.01987 Export-Import Bank of India 15.0 - 15.01987 Gujarat Fusion Glass Ltd. 7.5 1.7 9.21987 The Gujarat Rural Housing

Finance Corp. - 0.2 0.21987 Hindustan Motors Ltd. 40.5 - 40.5

TOTAL GROSS COMMITMENTS 506.0 18.5 524.5

Less: Cancellations, Terminations,Repayments and Sales 291.6 8.0 299.6

Now Held 214.4 10.5 224.9==S=2 _S= ==S==

Undisbursed 135.1 2.6 137.72==: =-= =s=-

IBRD 19960R70~~~~ IMA~~~CHAI 8r 40

THIRD~~ NAIOA IED NRJA

PAKISTAN AP PS

NEPAL /I

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THIRD NATIONAL SEEDS PROJECT

\ >5 wz Thrd Natforal Seds Project

LIII] Seo\nd Notoa Seeds Prolet[IIi I Firt Naf ti Seeds Project

- Ralfroaids

KROMEo Ie xtoo 0 0 400 so 0RALA 0 Towns and Cities

_____________ 0 100 200 300 j kSlate and Union Territory Capitals

Wm Triwndru / 12 2'0 OD Naionatl Capital

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LANKA Inerntioa Bou-d-ies

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c0~5 4.ooool 5. ' shot n y '''4 'o suds oM 9. v I - IMAY 1988