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.