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                                     INTERNATIONAL BANK FOR
                                 RECONSTRUCTION AND DEVELOPMENT
                                         Washi~gton, D.C.
       FOR THE PRESS                                               FOR lMMEDIATE RELEASE
       Press Release No. 144                                       August 5, 1949
            The International Bank for Reconstruction and Development announced
       today that the Bank has received a formal application from the G~verJ'llilent
       or I.~dia for assistance from the Bank in financing the foreign exchange costs
       or a p~ogram of economic development   of   India, including the rehabilitation
       of the Indian railways, the reclamation and irrigation of agricultural land,
       and the development of electric power.
            The Bank has alreedy completed its investigation of the railway project
       involving the ~inancing of the p1,1rchase of locomotives, spare parts, and t,9.nk
       cars for the Indian'railway eystem which is in urgent need of' th!s equipment to
       facilitate the distribution of goods within the country end the movement of
~;     export products.
            The Bank is also engaged in the inveetigation of an electric power project
       which involves the construction of a 150 1 000 kilowatt thermal plant at Bokaro,
       in the province of Bihar.    A.D. Spottswood, of the engineering staff of the
       Bank, arrived in.India on July 29 to complet~ the Bank's engineering study of
       this project.   The Bank is ~lso investigating an agricultural project for the
       reclamation of weed infested land, and D.R. Sethi, Special Agriculture Commissioner
       for the Indian Government, arrived in Washington on JuJ.y 29 to discuss this
       project with the Bank.    Other projects in the Indian development program are
       also under examination.
            Mr. Keith Roy, Deputy Secretary of the Indian Ministry of Finance, who
       has been designated to negotiate on behalf of the GovernJllent of India; returned



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       to Washington on August 3.    lt :is expected that final details of the first
       loan agreement·will be completed in the near future.