LOAN NUMBER 9280-IN Loan Agreement (Creating a Coordinated and Responsive Indian Social Protection System Development Policy Loan) between INDIA and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT LOAN AGREEMENT AGREEMENT dated as of the Signature Date between INDIA (“Borrower”) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (“Bank”) for the purpose of providing financing in support of the Program (as defined in the Appendix to this Agreement). The Bank has decided to provide this financing on the basis, inter alia, of: (i) the actions which the Borrower has already taken under the Program and which are described in Section I of Schedule 1 to this Agreement; and (ii) the Borrower’s maintenance of an adequate macroeconomic policy framework. WHEREAS, the Borrower has requested both the Bank and IDA to contribute to the financing of its Program, as such term is defined in the Appendix to this Agreement, including: (a) a loan from the Bank in an amount of three hundred and eighty-seven million five hundred thousand Dollars ($387,500,000); and (b) a credit from IDA comprising a concessional portion of an amount of SDR 12,600,000 and a non-concessional portion of an amount of ninety-four million and five hundred thousand Dollars ($94,500,000). NOW, THEREFORE, the Borrower and the Bank hereby agree as follows: ARTICLE I — GENERAL CONDITIONS; DEFINITIONS 1.01. The General Conditions (as defined in the Appendix to this Agreement) apply to and form part of this Agreement. 1.02. Unless the context requires otherwise, the capitalized terms used in this Agreement have the meanings ascribed to them in the General Conditions or in the Appendix to this Agreement. ARTICLE II — LOAN 2.01. The Bank agrees to lend to the Borrower the amount of three hundred and eighty-seven million five hundred thousand Dollars ($387,500,000), as such amount may be converted from time to time through a Currency Conversion (“Loan”). 2.02. The Front-end Fee is one quarter of one percent (0.25%). 2.03 The Commitment Charge is one quarter of one percent (0.25%) per annum on the Unwithdrawn Loan Balance. 2.04. The interest rate is the Reference Rate plus the Variable Spread or such rate as may apply following a Conversion; subject to Section 3.02(e) of the General Conditions. 2.05. The Payment Dates are June 15 and December 15in each year. 2.06. The principal amount of the Loan shall be repaid in accordance with Schedule 2 to this Agreement. -2- 2.07. Without limitation upon the provisions of Section 5.05 of the General Conditions, the Borrower shall promptly furnish to the Bank such information relating to the provisions of this Article II as the Bank may, from time to time, reasonably request. ARTICLE III — PROGRAM 3.01. The Borrower declares its commitment to the Program and its implementation. To this end, and further to Section 5.05 of the General Conditions: (a) the Borrower and the Bank shall from time to time, at the request of either party, exchange views on the Borrower’s macroeconomic policy framework and the progress achieved in carrying out the Program; (b) prior to each such exchange of views, the Borrower shall furnish to the Bank for its review and comment a report on the progress achieved in carrying out the Program, in such detail as the Bank shall reasonably request; and (c) without limitation upon paragraph (a) and (b) of this Section, the Borrower shall promptly inform the Bank of any situation that would have the effect of materially reversing the objectives of the Program or any action taken under the Program including any action specified in Section I of Schedule 1 to this Agreement. ARTICLE IV — REMEDIES OF THE BANK 4.01. The Additional Event of Suspension consists of the following, namely, that a situation has arisen which shall make it improbable that the Program, or a significant part of it, will be carried out. ARTICLE V — EFFECTIVENESS; TERMINATION 5.01. The Additional Condition of Effectiveness consists of the following, namely, that the Bank is satisfied with the progress achieved by the Borrower in carrying out the Program and with the adequacy of the Borrower’s macroeconomic policy framework. 5.02. The Effectiveness Deadline is the date ninety (90) days after the Signature Date. ARTICLE VI — REPRESENTATIVE; ADDRESSES 6.01. The Borrower’s Representative is any of the following officials acting severally: The Secretary, Additional Secretary, Joint Secretary, Director, Deputy Secretary, or Under Secretary of the Department of Economic Affairs of the Borrower’s Ministry of Finance. 6.02. For purposes of Section 10.01 of the General Conditions: (a) the Borrower’s address is: Secretary Department of Economic Affairs -3- Ministry of Finance Government of India North Block New Delhi 110 001, India; and (b) the Borrower’s Electronic Address is: Facsimile: E-mail: +91-11-23094075 secy-dea@nic.in 6.03. For purposes of Section 10.01 of the General Conditions: (a) the Bank’s address is: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America; and (b) the Bank’s Electronic Address is: Telex: Facsimile: E-mail: 248423(MCI) or 1-202-477-6391 wbindia@worldbank.org 64145(MCI) AGREED as of the Signature Date. INDIA By _____________________________________/s1/ Authorized Representative Rajat Kumar Mishra Name: __________________________/n1/ Rajat Kumar Mishra Title: __________________________/t1/ 15-Jul-2021 Date: __________________________/d1/ -4- INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By _____________________________________/s2/ Authorized Representative Junaid Kamal Ahmad Name: __________________________/n2/ Country Director Title: __________________________/t2/ 15-Jul-2021 Date: __________________________/d2/ -5- SCHEDULE 1 Program Actions; Availability of Loan Proceeds Section I. Actions under the Program Pillar I: Institutional Co-ordination 1. The Ministry of Finance has increased devolution to state governments and direct grants to local government bodies, with a raise in central grants to states for disaster management (and 40% of State Disaster Response Fund earmarked for response and relief activities, including livelihood support, cash transfers and others for disaster relief). 2. The Ministry of Finance has incorporated the food subsidy in the budget of 2021-22, as part of the Department of Food and Public Distribution demand for grants. 3. The Ministry of Finance has initiated a detailed exercise to rationalize and reduce the number of centrally sponsored schemes. Pillar II : Expanding the Net for Urban Informal Workers 4. The Ministry of Housing and Urban Affairs has launched the National Urban Digital Mission, which will upgrade data infrastructure and create data exchange platforms for urban local bodies. 5. The Ministry of Housing and Urban Affairs has launched a new credit/loan program for urban street vendors. Pillar III: Strengthening Delivery Systems 6. The Ministry of Electronics and Information Technology has formulated a draft scheme with incentives to boost digital transactions in India. 7. The Ministry of Consumer Affairs, Food and Public Distribution has launched a mobile- based application for migrants to locate the nearest fair price shop to receive food grains. Pillar IV : Climate Action 8. The Ministry of Finance has enhanced the weightage given to forest, ecology, climate vulnerabilities and disaster risk of each state, in allocating central government grants to state governments for disaster management. 9. The Ministry of Finance has developed central challenge grants to be awarded to cities with population above one million based on achievement of air quality parameters. 10. The Ministry of Environment, Forests and Climate Change has created a multi-sector committee to monitor progress of India’s implementation of the Paris Agreement. -6- 11. The Ministry of Environment, Forests and Climate Change has created a portal that captures key adaptation and mitigation actions taken by various ministries and helps disseminate amongst citizens information on key climate change matters in India. Section II. Availability of Loan Proceeds A. General. The Borrower may withdraw the proceeds of the Loan in accordance with the provisions of this Section and such additional instructions as the Bank may specify by notice to the Borrower. B. Allocation of Loan Amounts. The Loan is allocated in: (a) a single withdrawal tranche, from which the Borrower may make withdrawals of the Loan proceeds; and (b) the amounts requested by the Borrower to pay: (A) the Front-end Fee; and (B) each Interest Rate Cap or Interest Rate Collar premium. The allocation of the amounts of the Loan to this end is set out in the table below: Allocations Amount of the Loan Allocated (expressed in $) (1) Single Withdrawal Tranche 386,531,250 (2) Front-end Fee 968,750 (3) Amount due pursuant to Section 4.05 (c) of the 0 General Conditions TOTAL AMOUNT 387,500,000 C. Withdrawal Tranche Release Conditions. No withdrawal shall be made of the Single Withdrawal Tranche unless the Bank is satisfied: (a) with the Program being carried out by the Borrower; and (b) with the adequacy of the Borrower’s macroeconomic policy framework. D. Deposit of Loan Amounts. The Borrower, within thirty (30) days after the withdrawal of the Loan from the Loan Account, shall report to the Bank: (a) the exact sum received into the account referred to in Section 2.03 (a) of the General Conditions; (b) the details of the account to which the Indian Rupees equivalent of the Loan proceeds will be credited; (c) the record that an equivalent amount has been accounted for in the Borrower’s budget management systems; and (d) the statement of receipts and disbursement of the account referred to in Section 2.03(a) of the General Conditions. E. Closing Date. The Closing Date is December 31, 2022. -7- SCHEDULE 2 Commitment-Linked Amortization Repayment Schedule The following table sets forth the Principal Payment Dates of the Loan and the percentage of the total principal amount of the Loan payable on each Principal Payment Date (“Installment Share”). Level Principal Repayments Principal Payment Date Installment Share On each June 15 and December 15 Beginning December 15, 2026 through June 15, 2039 3.7% On December 15, 2039 3.8% -8- APPENDIX Definitions 1. “Department of Food and Public Distribution” means the department of food and public distribution under the Ministry of Consumer Affairs, Food and Public Distribution. 2. “General Conditions” means the “International Bank for Reconstruction and Development General Conditions for IBRD Financing, Development Policy Financing”, dated December 14, 2018 (revised on August 1, 2020, December 21, 2020, and April 1, 2021). 3. “Ministry of Consumer Affairs, Food and Public Distribution” means the ministry responsible for consumer affairs, food and public distribution in the Borrower’s central government. 4. “Ministry of Electronics and Information Technology” means the ministry responsible for electronics and information technology in the Borrower’s central government. 5. “Ministry of Environment, Forests and Climate Change” means the ministry responsible for environment and forests and climate change in the Borrower’s central government. 6. “Ministry of Finance” means the ministry responsible for finance in the Borrower’s central government. 7. “Ministry of Housing and Urban Affairs” means the ministry responsible for housing and urban affairs in the Borrower’s central government. 8. “Paris Agreement” means the legally binding international treaty on climate change, adopted by 196 Parties at Paris Conference on Climate Change, on December 12, 2015 and entered into force on November 4, 2016. 9. “Program” means: the program of objectives, policies, and actions set forth or referred to in the letter dated May 28, 2021 from the Borrower to the Bank declaring the Borrower’s commitment to the execution of the Program, and requesting assistance from the Bank in support of the Program during its execution and comprising actions taken, including those set forth in Section I of Schedule 1 to this Agreement, and actions to be taken consistent with the program’s objectives. 10. “Signature Date” means the later of the two dates on which the Borrower and the Bank signed this Agreement and such definition applies to all references to “the date of the Loan Agreement” in the General Conditions. 11. “Single Withdrawal Tranche” means the amount of the Credit allocated to the category entitled “Single Withdrawal Tranche” in the table set forth in Part B of Section II of Schedule 1 to this Agreement. 12. “State Disaster Response Fund” means the Borrower’s fund constituted under Section 48(1) (a) of its Disaster Management Act, 2005 (Act no. 53 of 2005).