17 January 2008
First of its kind loan would be invested in health, water, energy and irrigation projects.
On December 7, 2007, BBC News reported on its website that the Indian state of Maharashtra was seeking a $3.5 billion equivalent rupee loan from the World Bank. The loan would be the first time the World Bank agreed to such a loan in rupees. A weak dollar and an appreciating rupee are cited as the reasons Maharashtra government is requesting the loan in rupees rather than dollars.
Maharashtra would use the loan in order to fund health, water, energy and irrigation projects and in particular the Mumbai Metro project, which is projected to cost $2.5 billion. Other projects expected to be covered by the loan include rural and urban water supplies, power transmission, technical support for a "vision Mumbai" plan and a possible Public Private Partnership (PPP) in irrigation.