Chhattisgarh gets Centre’s nod for World Bank funded school project
Polity & Governance
16th Jul, 2022
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.
- 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.
- 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)
- 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.