World Bank clears $1billion support for healthcare, $750m for infra funding

New Delhi: The World Bank has approved $1-billion support to India's healthcare project, Pradhan Mantri-Ayushman Bharat Health Infrastructure Mission.

The Washington-based international financial institution has also approved $750-million loans to support reforms critical to address financing gaps in infrastructure, small businesses, and green projects finance markets and attract private sector investments into these areas, it said on Friday.

All the loans have a final maturity of 18.5 years, including a grace period of five years.

The healthcare support will prioritise seven states, namely, Andhra Pradesh, Kerala, Meghalaya, Odisha, Punjab, Tamil Nadu, and Uttar Pradesh, the World Bank said.

It observed that India's performance in healthcare has improved over the years, with life expectancy inching towards 70 years in 2020 against 58 years in 1990. However, the outbreak of Covid-19 has underscored the need for ramping up the sector, it said.

"The Covid-19 outbreak has reemphasised the urgency for significant reforms to improve health sector performance in India," said Hideki Mori, acting country director for India at World Bank. "India's decision to invest early and significantly to strengthen its health system even as it emerges from the pandemic, is a pioneering choice and we are pleased to support this important agenda."

Backing Development Policy
The World Bank's $750-million loans to improve infrastructure financing and promotion of green businesses will support the development policy loan (DPL) of the central government. DPL aims to establish improve access of finance to small and medium scale industries along with a focus on promoting low carbon alternatives.