Chhattisgarh gets Centre’s nod for World Bank funded school project

Context

The Chhattisgarh Government has received in- principal nod from the Centre to go ahead with a $300 million school education project which State is negotiating with the World Bank.

About

The initiative will allow the Chhattisgarh Government to borrow $300 million over a period of five years.
It will allow the state to pay significantly lower than market rates of interest, and repay it over a period of 20 years.
This will boost the Chhattisgarh’s Education system.

What is an In-principal nod process?

An in-principle nod means that the Centre has no objection to the State borrowing money from an external financial institution such as the World Bank.
This is not the final approval but it paves the way for the State to proceed with subsequent discussions.
Similarly, the World Bank has also approved in-principle that it’s willing to fund the project.

Procedure to be followed to sanction funds by the World Bank

A World Bank team’s visit to Chhattisgarh.
Then a Detailed Project Report (DPR) will be prepared with the Centre and the World Bank, which will be put up before the World Bank Board and the Centre for a final approval.
The DPR will also have a detailed plan on how the money will be spent.

Contributions of World Bank for Education in India

The World Bank has been associated with India’s school education system since 1994.
The $500 million Strengthening Teaching-Learning and Results for States Program (STARS) of 2021, to improve the quality and governance of school education in six Indian States.

World Bank

The International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), two of the World Bank Group's five international entities, are known as the World Bank.
It was formed with the International Monetary Fund at the 1944 Bretton Woods Conference.
The World Bank Group is a global partnership of 189 countries and five constituent organisations committed to alleviating poverty and promoting prosperity.
The World Bank Group's five development institutions are:
International Bank for Reconstruction and Development (IBRD)
- International Development Association (IDA)
- International Finance Corporation (IFC)
- Multilateral Guarantee Agency (MIGA)
- International Centre for the Settlement of Investment Disputes (ICSID)
Functions:
- It helps creditworthy middle-income and low-income countries by providing loans, guarantees, advice services, and risk management tools.
- IBRD finances investments in a variety of areas and provides technical assistance and experience at all stages of a project's development.
- It also aids governments in improving their countries' investment climate, eliminating service delivery bottlenecks, and strengthening institutions and policies.