FOR IMMEDIATE RELEASE
World Bank
1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234
BANK NEWS RELEASE NO. 89/ 69                          Contact: Richard Kollodge
IDA NEWS RELEASE NO. 89/ 69                                      (202) 477-4507
INDIA BOOSTS SILK PRODUCTION, CREATES JOBS FOR THE POOR
WASHINGTON, May 22, 1989 -- India is set to start a project designed to
boost silk production.
The project, supported by a credit of SDR 113.8 million ($147 million)
from the International Development Association (IDA) and a $30 million World
Bank loan, is expected to result in increased annual production valued at $40
million and in 500,000 jobs for poor people in the country, particularly women
and tribal people in rural areas. IDA is the World Bank's concessionary lending
affiliate.
The project aims to increase silk production in five states, improve the
quality of silk goods, and increase the role of the private sector in silk
production.
Funds will be provided to India's Central Silk Board (CSB) and five
participating states to improve support services such as research, extension and
training for small-scale farmers that produce silkworms. CSB will also support
pilot projects to encourage silk production in 12 states where the sericulture
industry has not been developed. The project also supports private silkworm
farms.
The project will be jointly financed with a grant of SwF 40 million
($25 million) from the Swiss Development Corporation, which collaborated closely
in project preparation and will assist in implementation.
The World Bank loan is for 20 years, including five years of grace, with a
variable interest rate, currently 7.65 percent, linked to the cost of the Bank's
borrowings. It also carries an annual commitment charge of 0.75 percent on the
undisbursed balance. The IDA credit is for 35 years, including 10 years of
grace; it carries no interest, but has an annual charge of 0.75 percent on the
disbursed balance and a variable charge of up to 0.5 percent (currently zero
percent) on the undisbursed balance.
Note: Money figures are in U.S. dollar equivalents. IDA credits are
denominated in SDRs (Special Drawing Rights), which are valued
on the basis of a "basket" of currencies. The U.S. dollar
equivalent of the SDR amount of the IDA credit reflects the
exchange rates existing at the time of the negotiation of the
credit.