World Bank has agreed to offer $600m to the Indian state of Jharkhand to provide water supply and sanitation and to increase power transmission.

The World Bank's support will be for state-level projects that will be spread over  2 to 3 years. These new projects are expected to improve the infrastructure and offer sustainable urban and rural services.

The World Bank has agreed to offer $300m (INR 19.35bn) for Jharkhand Municipal Development Project that aims to provide water supply and sanitation by improving urban local bodies to undertake policy reforms and by helping them to better manage their resources.

For the second project, World Bank has agreed to finance $150m (INR 9.67bn) for Jharkhand Power System Improvement Project. The project is expected to support the state in increasing its transmission power from Jharkhand to other states in the country.

Apart from this, the financing will also support in increasing power transmission capacity, to streamline procurement and contract management practices at Jharkhand Urja Sancharan Nigam (JUSNL), the power transmission company of the state and to help Jharkhand Bijli Vitran Nigam Limited (JBVNL), distribution company, reduce its Aggregate Transmission and Commercial (AT&C) losses. 

World Bank India country director Junaid Ahmad said: “Jharkhand is a key state in India’s growth trajectory and in its fight against poverty. The Chief Minister has identified a series of important reforms to hasten the pace of development in the state and the World Bank has committed its full support to these efforts. 

“Our projects over the next few years will help the state strengthen the delivery of public services through investments in rural and urban infrastructure – enabling its people to gain access to better jobs and services,” he added.

Image: World Bank Country Director Junaid Ahmad with Chief Minister Raghubar Das. Photo: Courtesy of World Bank Group.