International Finance Corporation to invest $150 million in water projects in India

Posted By: Religare
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IFC to invest $150 million in water projects in India
Realizing the necessity to overcome the existing water challenges, in order to maintain the upward economic growth of the India, International Finance Corporation (IFC), a subsidiary of World Bank, is likely to invest about $150 million in water management and water treatment projects in India.

The project would intend to improve the efficiency of water usage in agriculture, industrial water and its reuse and urban water projects, and decentralised distribution for rural areas by financing small water treatment plants. The likely investment is planned to take place over the period of next two to three years.

Besides the three focused areas of concern, the project is also designed to provide advisory services including preparation of bidding documents for projects, providing solutions for water issues such as leakage and illegal connections

Commenting on the development, IFC's South Asia head for water, Bastiaan Mohrmann, said, “To sustain its robust economic growth, India needs to address its growing water challenges, and the private sector has an important role. Over the next two to three years, we expect a significant increase in private-sector water investments in India."

Further, as per the plans of IFC, the funding of the project would be done through offering financing for public-private partnership (PPP) projects in these areas. However, there are further expectations of the lending arm to opt for the equity stake in such projects.

Read more about: economy, industry, bank
Story first published: Friday, July 15, 2011, 9:47 [IST]
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