Tata Power, Bhutan & World Bank Drive $515M Clean Energy Boost with Dorjilung Project

Bhutan has signed $515 million in financing agreements with the World Bank, alongside Tata Power, to build the 1,125 MW Dorjilung Hydroelectric Power Project—its largest hydropower initiative, expected to generate one-third of the nation’s electricity and boost GDP by 2.4%.

Project Overview

• Capacity: 1,125 MW
• Location: Kurichhu River, eastern Bhutan
• Annual Generation: Over 4,500 GWh of clean electricity
• Completion Target: 2031
• Economic Impact: Expected to raise Bhutan’s GDP by 2.4%

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Financing & Structure

• Total Project Cost: $1.7 billion
• World Bank Financing: $300M from IDA (includes $150M grant), $215M from IBRD, up to $300M from IFC
• Public-Private Partnership: Druk Green Power Corporation (60%) and Tata Power (40%)
• Private Sector Catalyzation: Expected to mobilize $900M additional financing

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Regional Impact

• Exports to India: Nearly 80% of annual generation
• Carbon Reduction: Displacement of 3.3 million tons of CO₂ annually
• Energy Security: Reduces winter imports, provides surplus summer power for export

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Economic & Social Benefits

• Jobs: Direct and indirect employment opportunities
• Sectors Boosted: Manufacturing, tourism, and small businesses
• Revenue Use: Export revenues reinvested in health, education, and infrastructure

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Leadership Statements

• Dasho Tshering Tobgay, PM of Bhutan: “This project is a cornerstone of Bhutan’s 13th Five-Year Plan… advancing our carbon-negative commitment.”
• Johannes Zutt, World Bank VP South Asia: “The financing model sets a new standard for sustainable infrastructure development.”
• Dr Praveer Sinha, CEO Tata Power: “This landmark project will strengthen regional energy security and deepen India–Bhutan clean energy cooperation.”

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Key Takeaways

• Bhutan’s largest hydropower venture under PPP
• Model for sustainable financing with minimal sovereign debt exposure
• Transforms Bhutan’s energy sector, reinforces carbon-negative status
• Deepens regional clean energy trade with India

Haryana’s Clean Air Push with World Bank

Air pollution is one of the biggest problems in Haryana, especially in areas near Delhi. To fight this, the Haryana government has teamed up with the World Bank on a massive ₹3,600 crore project called the Haryana Clean Air Project for Sustainable Development.

Here’s what it means in simple terms:

• Cleaner factories: About 1,000 industries will get help to switch from dirty fuels to cleaner options like natural gas.
• Less smoke from generators: Diesel generators will be converted to hybrid systems that pollute less.
• Greener buses: The state will buy electric buses to cut down on traffic pollution.
• Farm solutions: Farmers will be encouraged to stop burning crop stubble, which causes huge smoke clouds every winter.
• Better monitoring: New systems will track air quality more closely so rules can be enforced.

Why it matters: This project could make the air healthier to breathe, reduce diseases, and even create new green jobs. It’s one of Haryana’s biggest-ever environmental efforts, and if it works, it could inspire other states to follow.

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Technical Policy Brief: Haryana–World Bank Clean Air Project

Project overview

• Name: Haryana Clean Air Project for Sustainable Development
• Funding: ₹3,600 crore (part of a $600 million World Bank programme for Haryana & Uttar Pradesh)
• Duration: 5 years
• Objective: Reduce air pollution across the NCR airshed through industrial, agricultural, and transport interventions.

Key interventions

• Industrial transition:
  • Incentivize 1,000 industries to replace coal/FO-based boilers with PNG/CNG/gaseous fuel systems.
  • Retrofit 1,000 diesel generator sets to hybrid/dual-fuel modes.
• Transport sector:
  • Procurement of electric buses.
  • Promotion of clean mobility infrastructure.
• Agriculture:
  • Enforcement against stubble burning.
  • Support for alternative residue management technologies.
• Monitoring & governance:
  • Strengthen air quality monitoring networks.
  • Enhance enforcement capacity at state and district levels.

Expected outcomes

• Health: Reduction in respiratory and cardiovascular disease burden.
• Economic: Increased productivity, improved investment climate.
• Environmental: Significant reduction in PM

AI Meets Agriculture : World Bank Fuels Uttar Pradesh’s Farmers & Tech Talent

Uttar Pradesh is making bold initiatives in agriculture and AI, harnessing cutting-edge innovation to empower farmers and equip youth with future-ready tech skills. With the backing of the World Bank, the state has launched two transformative initiatives—UP AGREES (Uttar Pradesh Accelerated Growth in Rural Economy and Enterprise Strengthening) and AI Pragya —both designed to fuel economic growth, modernization, and digital transformation.

Bridging the Old and the New: Agriculture Meets AI

Traditionally known for its vast agricultural landscapes and diverse farming communities, Uttar Pradesh is now embracing AI-driven solutions to revolutionize its rural economy. The UP AGREES program, backed by a ₹2,737 crore (US $320 million approx.) loan from the World Bank, alongside a ₹1,166 crore ($136.5 million) contribution from the Uttar Pradesh government, aims to modernize farming across 28 districts, particularly in Purvanchal and Bundelkhand.

This initiative is poised to benefit over 10 lakh farmers, with 30% women participation, ensuring inclusivity in agricultural advancements. It also includes sending 500 farmers abroad to learn global best practices, helping them incorporate modern techniques such as precision farming, AI-enabled crop monitoring, and sustainable agricultural methods. The goal? To enhance productivity, optimize resources, and drive rural economic strength.

AI Pragya: Training the Tech Talent of Tomorrow

In parallel, AI Pragya sets its sights on 10 lakh youth, equipping them with AI, machine learning, data analytics, and cybersecurity skills. As India gears up for a tech-driven future, this initiative aligns with Uttar Pradesh’s vision of becoming a $1 trillion economy and solidifying its role as a startup hub.

The program is being developed in collaboration with leading tech giants like Microsoft, Intel, Amazon, Google, and HCL, ensuring that trainees receive industry-aligned skills tailored to emerging market demands. By integrating AI education across health, agriculture, IT, and other sectors, Uttar Pradesh is positioning itself at the forefront of digital workforce development, empowering young professionals to drive innovation across industries.

Chief Minister Yogi Adityanath’s Vision: A Growth Engine in Action

Chief Minister Yogi Adityanath has emphasized that Uttar Pradesh must evolve into India’s growth engine rather than an economic barrier. These initiatives—blending AI-driven precision farming with high-tech workforce development—reflect a forward-thinking governance approach, leveraging technology to transform both rural livelihoods and urban employment landscapes.

With World Bank support, Uttar Pradesh is cementing its position as a global leader in agricultural modernization and AI-powered education. By bridging the gap between traditional farming and digital innovation, the state is pioneering a model for sustainable growth, unlocking opportunities forThe Future: A Smarter, More Resilient Uttar Pradesh.

As AI reshapes industries worldwide, Uttar Pradesh’s strategic investments in agriculture and tech education create a dynamic blueprint for the future. Whether in farmlands or tech labs, innovation is now deeply embedded in the state’s growth narrative.

The message is clear— Uttar Pradesh isn’t just embracing change; it’s leading it.

Synopsis

UP AGREES (Uttar Pradesh Accelerated Growth in Rural Economy and Enterprise Strengthening)

• Focuses on modernizing agriculture in 28 districts across Purvanchal and Bundelkhand.
• Supported by a ₹2,737 crore loan from the World Bank, with the Uttar Pradesh government contributing ₹1,166 crore.
• Aims to benefit 10 lakh farmers, with 30% participation from women.
• Includes sending 500 farmers abroad to learn best agricultural practices.

AI Pragya

• Seeks to train 10 lakh youth in AI, machine learning, data analytics, and cybersecurity. 
• Designed to boost employment and support Uttar Pradesh’s startup ecosystem.
• Implemented with support from multiple departments, including education, health, agriculture, and IT.
• Collaborates with tech giants like Microsoft, Intel, Amazon, Google, and HCL.

Chief Minister Yogi Adityanath emphasized that these initiatives will position Uttar Pradesh as a growth engine rather than a barrier, aligning with the state’s vision of becoming a $1 trillion economy.

This seems like a fascinating intersection of agriculture and AI —right up your alley! What aspect interests you the most? The precision farming angle or the AI-driven workforce development? Let us know in the comments....

India Gets Additional $1.5 Bn from World Bank to Develop Low-Carbon Energy Infrastructure

The World Bank has granted USD 1.5 billion in financing to help India expedite the development of low-carbon energy infrastructure.

The financing for the operation includes a $1.46 billion loan from the International Bank for Reconstruction and Development (IBRD) and a $31.5 million credit from the International Development Association (IDA).

This funding aims to boost low-carbon energy by scaling up renewable energy and producing green hydrogen, among other initiatives. India, as the fastest-growing large economy globally, faces the challenge of decoupling economic growth from emissions growth. To achieve this, the World Bank's support focuses on:

• Green Hydrogen: The operation aims to promote the development of a vibrant market for green hydrogen, which is critical for decarbonization.
• Renewable Energy: Scaling up renewable energy is essential, especially in hard-to-abate industrial sectors.
• Climate Finance: The financing will stimulate climate finance for low-carbon energy investments, supporting India's transition toward cleaner energy sources.

This strategic investment aligns with India's net-zero target and will create clean energy jobs in the private sector. By FY25/26, the reforms supported by this operation are expected to result in the production of at least 450,000 metric tons of green hydrogen and 1,500 MW of electrolyzers annually. Additionally, it will significantly increase renewable energy capacity and contribute to reducing emissions by 50 million tons per year.

Impact on India's energy sector

The World Bank's additional financing of USD 1.5 billion will significantly impact India's energy sector by accelerating its transition toward a low-carbon economy. Here are the key areas of impact

1. Green Hydrogen Development: The funding will promote the development of a vibrant market for green hydrogen. Green hydrogen, produced using renewable energy, has immense potential for decarbonization and can be used in various sectors, including industry and transportation.

2. Renewable Energy Scaling: India aims to scale up its renewable energy capacity. The financing will support projects that enhance solar, wind, and other renewable energy sources. This will contribute to reducing greenhouse gas emissions and improving energy security.

3. Clean Energy Jobs: The investment will create jobs in the private sector related to clean energy production, distribution, and technology development. This will boost employment opportunities and contribute to economic growth.

4. Emission Reduction: By FY25/26, the reforms supported by this operation are expected to result in the production of at least 450,000 metric tons of green hydrogen and 1,500 MW of electrolyzers annually. Additionally, it will significantly reduce emissions by 50 million tons per year.

Overall, this funding aligns with India's net-zero target and supports the country's efforts to transition to sustainable and cleaner energy sources.

Noida-based Agritech Company Leads Connect Gets CCE Mandate for World Bank Financed Assam Agribusiness and Rural Transformation Project

Noida based Agritech will conduct Crop Cutting Experiments (CCE) on pilot basis in different zones of Assam.

NOIDA, Uttar Pradesh, India, August 6, 2021: The Government of Assam (GoA) for its World Bank backed project, Assam Agribusiness and Rural Transformation Project (APART) has given the Crop Cutting Experiments (CCE) mandate to Noida based Agri-tech company, Leads Connect. The agritech will conduct the CCE in 23 districts of the Assam state, on pilot basis.

APART was launched in the year 2018 by the Government of Assam through Government of India and received huge funds from World Bank to uplift the agricultural sector of the state and encourage farmers to use technology to increase the production.

On being appointed, Mr. Navneet Ravikar, Chairman & Managing Director, Leads Connect Services Private Limited informed that “getting a mandate to conduct CCE for different zones of Assam is a huge achievement for us an organization, and we are very excited and prepared to deliver the project successfully”.

He further added, “that it is now indispensable to develop measures and frameworks for climate resilient agriculture for addressing the issues of food insecurity. Therefore, the need of using advance technology such as geospatial technology and artificial intelligence along with comprehensive field observations, are important. Performing these studies with sheer accuracy and precision, are keys, in providing people centric solutions besides necessity of upscaling developed solutions. So, the research unit of organization will also be utilizing this opportunity to further their research and development activities for developing quality products, in the context of climate resilient agriculture and disaster management, as these aspects are now needed to be studied in sync.”

Leads Connect, with its cutting-edge technologies such as Remote Sensing and GIS, Numerical Modeling, artificial intelligence (AI) and data analytics frameworks, will co-observe the CCEs conducted by state Government of Assam. This pilot study will start from September 2021 and will be done for Kharif 2021. Currently, the agritech is engaged in delivering projects in more than 100 districts of India and has Pan-India presence backed by comprehensive presence of field team and well-equipped research lab.

About Leads Connect Services Private Limited

Leads Connect is an analytics company with core focus on Agri-technology driven Data Analysis and Modelling, Risk Management & Financial Services. It aims to connect farm value chain for enabling sustainable, scalable, and profitable agri-business ecosystem. Besides the core focus areas, the organisation has been engaged in research and development-based analytics related to climate and hazard, Landscape, Biodiversity, City, and Geospatial analytics.

Leads Connect has delivered projects related to crop cutting experiments (CCEs), Remote Sensing based Crop Health Monitoring, Crop Acreage, Crop Yield estimates, Risk and Claim Management Services to various central and state organisations, insurers, and reinsurers. In addition, they have delivered projects pertaining to GP level yield estimation using technology. It has used machine learning algorithms and satellite remote sensing analytics to develop framework for yield estimation at GP level. They are currently monitoring CCEs for PMFBY in more than 100 districts across India along with Geotagging of Agriculture Infrastructures in 125 districts for NABCONS, a wholly owned subsidiary of NABARD.

World Bank Infuse $500 Mn in India's Early Childhood Education Project STARS

Agreement for financial support to STARS project signed between Department of Economic Affairs (DEA) and World Bank

Agreement for the financial support of the implementation of Strengthening Teaching-Learning and Results for States (STARS) project of Ministry of Education was signed between Department of Economic Affairs (DEA) and World Bank along with Ministry of Education. The total project cost of STARS project is Rs 5718 crore with the financial support of World Bank amounting to US $ 500 million (approximately Rs. 3700 crore) and rest coming as State share from the participating States, over a period of 5 years.

STARS project would be implemented as a new Centrally Sponsored Scheme under Department of School Education and Literacy (DoSEL), MOE. Earlier Union Cabinet has approved the proposal of STARS project on 14th Oct 2020. The project covers 6 States viz Himachal Pradesh, Rajasthan, Maharashtra, Madhya Pradesh, Kerala and Odisha. The identified States will be supported for various interventions for improving the quality of education.

The Program envisions improving the overall monitoring and measurement activities in the Indian school education system through interventions in selected states. STARS will draw on existing structure under Samagra Shiksha with the DoSEL, MoE as the main implementing agency at the national level. At the State level, the project will be implemented through the integrated State Implementation Society (SIS) for Samagra Shiksha.

The proposed World Bank support under STARS is primarily in the form of a results-based financing instrument called Program for Results (PforR). This will ensure major reforms at the State level through a set of disbursement-linked indicators (DLIs). A State Incentive Grant (SIG) will be used to encourage States to meet desired project outcomes. The SIG matrix has been aligned with the intermediate outcome indicators as per the requirement of PforR instrument. An independent Verification agency (IVA) will verify each result before disbursement of funds.

STARS project will be instrumental in the implementation of various recommendations of National Education Policy 2020 i.e. Strengthening Early Childhood Education and Foundational Learning, Improving Learning Assessment System, ICT-enabled approaches in education, Teachers Development and Vocational education etc.

FCC & NPCI to Host World’s Largest Virtual Global Fintech Fest

One-of-a-kind global event convened by NPCI and IAMAI and presented by RBI and Department of Economic Affairs (DEA), to bring together Fintech & BFSI ecosystems

Event supported by World Bank and the United Nations Capital Development Fund (UNCDF) 

• Premier global fintech event to be hosted on 22-23 July 2020
• To host 50+ countries, 100+ speakers and 10,000+ delegates
• Amitabh Kant, Nandan Nilekani, Uday Kotak, V Vaidyanathan, Sachin Bansal and Alderman William Russell among key speakers
• To facilitate discussions on the road ahead and collaborations for businesses in the post-pandemic world

To bring together fintech and BFSI ecosystems across the globe, the Fintech Convergence Council (FCC) the flagship fintech committee of Internet & Mobile Association of India (IAMAI) along with National Payments Corporation of India (NPCI), and the Payments Council of India (PCI) will host the Global Fintech Fest (GFF) a first-of-its-kind international virtual fintech event. 

The event is presented by the Department of Economic Affairs (DEA), Ministry of Finance, Government of India and the Reserve Bank of India (RBI).

The two day event themed – ‘Fintech: With and Beyond COVID’ is scheduled for 22-23 July 2020. The event is also supported by the World Bank and the United Nations Capital Development Fund (UNCDF).

In times of global uncertainty, India continues to be a bright spot in the world economy. GFF aims to showcase India’s thought leadership across the global ecosystem, while harnessing the BFSI and fintech sector to be the ‘change agent’ for the economy in the post-pandemic world.

Naveen Surya, Chairman, Fintech Convergence Council & Chairman Emeritus, Payments Council of India, said, “The bank and fintech ecosystem has the potential to act as ‘agents of change’ for the economy in the post-COVID-19 world. With more than 2000 fintech startups as we speak, India today stands tall as the world’s second biggest fintech hub which puts a lot of onus on us to drive this growth momentum. GFF is our endeavour to bring all stakeholders together to discuss the challenges and opportunities for the BFSI and fintech sector globally whilst sharing ideas on fuelling sectoral growth through collaboration.”

Dilip Asbe, Managing Director and CEO, NPCI said, “The contribution of fintech start-ups in digitalizing the economy is important and hence NPCI wants to act as a catalyst for bridging the gap between the established financial entities and the start-ups. By encouraging open discussion among start-ups and established entities we hope that it will lead to collaborations benefiting the nation.

GFF will be the largest virtual congregation for the BFSI and Fintech ecosystem. It will be the ‘go to platform’ for companies and entrepreneurs to showcase their innovations and ideas as well as connect with peers, investors and potential customers thus creating growth and networking opportunities for the eco-system.”

Amitabh Kant, CEO, Niti Aayog, Nandan Nilekani, Co-founder and Non-Executive Chairman of the Board, Infosys, Uday Kotak, Managing Director & CEO, Kotak Mahindra Bank, V Vaidyanathan, MD & CEO, IDFC First Bank and Alderman William Russell, The Rt Hon Lord Mayor, City of London are among the keynote speakers for the fest. 

Justice BN Srikrishna, Retired Judge, Supreme Court of India, Sopnendu Mohanty, Chief Fintech Officer, Monetary Authority of Singapore, G Padmanabhan, Non-Executive Chairman, Bank of India, Sachin Bansal, Founder, Navi, Stephen Ingledew, Chief Executive, Fintech Scotland, Lizzie Chapman, Co-founder & CEO, Zestmoney, Denise Gee, Managing Director, Finexable, Dilip Asbe, Managing Director & CEO, NPCI, Praveena Rai, COO, NPCI, Arif Khan, CDO, NPCI, Rajan Anandan, Managing Director, Sequoia Capital, Kunal Shah, Founder & CEO, CRED, T R Ramachandran, Group Country Manager, India & South Asia Visa, Sameer Nigam Founder & CEO, Phonepe, Shivananda - SVP & CTO, Paypal, are some of the distinguished speakers among many others.

The global platform will host discussions by eminent industry stakeholders on -- the next stage of growth for financial institutions, ways for businesses to collaborate and the role fintech will play in the post pandemic world. The fest will drive thought leadership and conversations across sectors and subjects including -- Digital Payments, Digital Lending, Digital Insurance, Data Management, Financial Inclusion, Digital Transformation and Blockchain etc.

With 50+ countries, 100+ speakers and 10000+ delegates in attendance, GFF will bring together representatives of banking, financial technology and investment industries from across the globe to host impactful dialogues, public discussions and a curated exhibition of the latest disruptive technologies.

The fintech fest will stream live on social media platforms of YouTube and Facebook and is likely to be viewed by 100,000+ audience. For more information on GFF, including how to participate in or sponsor the event, please go to https://www.globalfintechfest.com

FCC has been at the forefront, working towards positioning India as a thought leader across the global fintech map. In the recent past, the body had joined hands with the Mumbai Fintech Hub, Government of Maharashtra, Ministry of Electronics and Information Technology (MeitY) and NPCI to host ‘India Fintech Festival (IFF)’. A first-of-its-kind global platform, IFF eyed for a collaborative growth ecosystem for fintech in India. The event which got stalled on account of the global pandemic is set to resume soon and the dates are expected to be out shortly.

About NPCI – 

National Payments Corporation of India (NPCI) was incorporated in 2008 as an umbrella organization for operating retail payments and settlement systems in India. NPCI has created a robust payment and settlement infrastructure in the country. It has changed the way payments are made in India through a bouquet of retail payment products such as RuPay card, Immediate Payment Service (IMPS), Unified Payments Interface (UPI), Bharat Interface for Money (BHIM), BHIM Aadhaar, National Electronic Toll Collection (NETC Fastag) and Bharat BillPay. NPCI also launched UPI 2.0 to offer a more secure and comprehensive services to consumers and merchants. 

NPCI is focused on bringing innovations in the retail payment systems through use of technology and is relentlessly working to transform India into a digital economy. It is facilitating secure payments solutions with nationwide accessibility at minimal cost in furtherance of India’s aspiration to be a fully digital society.

World Bank Sees FY21 India Growth at 1.5-2.8 % -- Slowest Since Economic Reforms Three Decades Back

India is likely to record its worst growth performance since the 1991 liberalisation this fiscal year as the coronavirus outbreak severely disrupts the economy, the World Bank said on Sunday.

India's economy is expected to grow 1.5 per cent to 2.8 per cent in the 2020-21 fiscal which started on April 1, the World Bank said in its South Asia Economic Focus report.

It estimated India will grow 4.8 per cent to 5 per cent in the 2019-20 fiscal that ended on March 31.

The COVID-19 outbreak came at a time when India's economy was already slowing due to persistent financial sector weaknesses, the report said.

To contain it, the government imposed a lockdown, shutting factories and businesses, suspending flights, stopping trains and restricting mobility of goods and people.

"The resulting domestic supply and demand disruptions (on the back of weak external demand) are expected to result in a sharp growth deceleration in FY21 (April 2020 to March 2021)," it said, adding that the services sector will be particularly impacted.

A revival in domestic investment is likely to be delayed given enhanced risk aversion on a global scale, and renewed concerns about financial sector resilience.

"Growth is expected to rebound to 5% in Fiscal 2022 (2021-22) as the impact of COVID-19 dissipates, and fiscal and monetary policy support pays off with a lag," the World Bank said.

The World Bank joins a chorus of international agencies that have made a similar cut in growth estimates in recent days on concerns about the COVID-19 outbreak.

The Asian Development Bank (ADB) sees India's economic growth slipping to 4 per cent in the current fiscal, while S&P Global Ratings has further slashed its GDP growth forecast for the country to 3.5 per cent from a previous downgrade of 5.2 per cent.

Fitch Ratings puts its estimate for India growth at 2 per cent, while India Ratings & Research has revised its FY21 forecast to 3.6 per cent from 5.5 per cent earlier.

Moody's Investors Service has slashed its estimate of India's GDP growth during 2020 calendar year to 2.5 per cent, from an earlier estimate of 5.3 per cent.

In its report released on Sunday, the World Bank saw the South Asian region, comprising eight countries, growing by 1.8 - 2.8 per cent this year, down from the 6.3 per cent it projected six months ago.

Its 2019-20 estimate for India at 4.8 - 5 per cent is lower by 1.2 - 1 per cent of the estimate made in October 2019. The 1.5 - 2.8 per cent growth estimate in 2020-21 is lower than 5.4 - 4.1 per cent estimated in October last year.

"The green shoots of a rebound that were observable at the end of 2019 have been overtaken by the negative impacts of the global crisis," the World Bank report said, adding India has set aside just over 1 per cent of GDP for programs to increase health sector spending and compensate the unemployed, with the bulk of the money going towards cash transfers, free food and gas cylinders, and interest-free loans.

In a conference call with reporters, World Bank Chief Economist for South Asia Hans Timmer said India's "outlook is not good."

And if the domestic lockdown is prolonged, then the economic result can be much worse than what the World Bank has in its baseline range of forecasts.

Among the steps that India can take to address this challenge, Timmer said the first is to focus on mitigating the spread of the disease, and to make sure that everybody has food.

"Then, it is very important to prepare for a rebound and that means there should be a focus on temporary jobs programmes, especially at the local levels. Those initiatives should be supported. And it is important to prevent bankruptcies especially of a small and medium sized enterprise," Timmer said in response to a question.

"In the longer run, this is really an opportunity to bring the Indian economy on sustainable path not just fiscally, but also socially," he said.

The World Bank is working with India to mitigate the challenge posed by COVID-19. It has approved USD 1 billion to India, of which the first tranche has already been released to deal with the emergency in the health care sector.

The first tranche aims at delivering civilian diagnostic equipment, put in place additional capacity to deal with testing and make testing available that benefits the entire population, said World Bank Vice President for South Asia Hartwig Schafer.

It is also working with India on two additional operations, which is anticipated to be ready in a matter of weeks.

These include, employment, banking and micro, small and medium enterprises sector.

In its report, the World Bank said that the COVID-19 outbreak has magnified pre-existing risks to India's economic outlook.

The government is undertaking measures to contain the health and economic fallout, and the RBI has begun providing calibrated support in the form of policy rate cuts and regulatory forbearance.

"Given significant uncertainties, there is a wide confidence interval around the baseline estimate. If a large-scale domestic contagion scenario is avoided, early policy measures payoff, and restrictions to the mobility of goods and people can be lifted swiftly, an upside scenario could materialize in FY21, with growth around four per cent," it said.

"However, if domestic contagion is not contained, and the nationwide shutdown is extended, growth projections could be revised downwards to 1.5 per cent, and fiscal slippages would be larger," it said. PTI LKJ ANZ

COVID-19 to Hit South Asia Very Hard, likely to Wipe out Gains made in Poverty Alleviation: West Bengal

The global coronavirus pandemic will hit South Asia very hard and the significant gains made in poverty alleviation in the region are likely to be wiped out due to the impact of the deadly disease, the World Bank warned on Sunday.

In its twice-a-year regional update, the bank said that South Asian governments must ramp up action to curb the health emergency, protect their people, especially the poorest and most vulnerable, and set the stage for fast economic recovery.

The latest report 'South Asia Economic Focus' anticipates a sharp economic slump in each of the region's eight countries, caused by halting economic activity, collapsing trade, and greater stress in the financial and banking sectors.

The COVID-19 pandemic will hit South Asia very hard and the significant gains made in poverty alleviation in the region are likely to be wiped out, the report warned.

In this fast-changing and uncertain context, the report for the first time presents a range of forecast, estimating that regional growth will fall to a range between 1.8 and 2.8 per cent in 2020, down from 6.3 per cent projected six months ago.

That would be the region's worst performance in the last 40 years, with temporary contractions in all South Asian countries. In case of prolonged and broad national lockdowns, the report warns of a worst-case scenario in which the entire region would experience a negative growth rate this year.

This deteriorated forecast will linger in 2021, with growth projected to hover between 3.1 and 4.0 per cent, down from the previous 6.7 per cent estimate, it said.

Maldives is expected to be the worst hit along with Afghanistan, Pakistan and Sri Lanka, wherein the full range of forecast is in negative territory, said Hans Timmer, World Bank Chief Economist for the South Asia Region.

The other countries are likely experiencing short term recessions, but the fiscal year growth numbers could be seen positive, he added.

"For example, India we forecast in the baseline growth between 1.5 and 2.8 per cent. In the worst case scenarios, all countries would experience the decline in GDP in their annual growth numbers," he said.

"The priority for all South Asian governments is to contain the virus spread and protect their people, especially the poorest who face considerable worse health and economic outcomes," said Hartwig Schafer, World Bank Vice President for the South Asia Region.

"The COVID-19 crisis is also an urgent call-to-action moment to pursue innovative policies and jumpstart South Asian economies once the crisis is over. Failure to do so can lead to long-term growth disruptions and reverse hard-won progress in reducing poverty," he said.

According to the report, the impact of the pandemic will hit hard low-income people, especially informal workers in the hospitality, retail trade, and transport sectors who have limited or no access to healthcare or social safety nets.

The report notes that the COVID-19 shock will likely reinforce inequality in South Asia.

As played out across the region, the sudden and large-scale loss of low paid work has driven a mass exodus of migrant workers from cities to rural areas, spiking fear that many of them will fall back into poverty, it said.

While there are no signs yet of widespread food shortages, the report warns that a protracted COVID-19 crisis may threaten food security, especially for the most vulnerable.

In the short term, the report recommends preparing weak healthcare systems for greater COVID-19 impacts, as well as providing safety nets and securing access to food, medical supplies, and necessities for the most vulnerable.

To minimise short-term economic pain, the report calls for establishing temporary work programs for unemployed migrant workers, enacting debt relief measures for businesses and individuals, and easing inter-regional customs clearance to speed up import and export of essential goods.

Once lockdown restrictions are loosened, South Asian governments should adopt expansionary fiscal policies combined with monetary stimulus to keep credit flowing in their economies, it said.

Since many South Asian countries have limited fiscal space, these policies should target people worst hit by the freeze on economic activity, it said.

The report urges governments to adopt temporary spending measures and coordinate with international financial partners to avoid unsustainable long-term debt levels and fiscal deficits.

"After tackling the immediate COVID-19 threat, South Asian countries must keep their sovereign debt sustainable through fiscal prudence and debt relief initiatives," said Timmer.

"And looking beyond the present crisis, lie great opportunities to expand digital technologies for payment systems and distant learning to unlock remote areas in South Asia," said the World Bank Chief Economist for the South Asia Region.

The novel coronavirus which originated from China in December has killed 108,862 people and infected over 1.7 million people globally. The US has the highest number of infections at 529,887, while Italy leads the death toll with 19,468 fatalities, according to Johns Hopkins University data. PTI LKJ

DPIIT focusing on 6 Parameters to Push India's Rank in World Bank's Ease of Doing Business Index

The Commerce and Industry Ministry has prepared a blueprint to further improve India's ranking in the World Bank's ease of doing business index with a focus on six parameters, including enforcing contracts and starting a business, an official said.

The Department for Promotion of Industry and Internal Trade (DPIIT), under the ministry, is also following reform activities in Kolkata and Bengaluru as these two cities are included by the World Bank this year besides Delhi and Mumbai for preparing the ease of doing business report, with a view to provide a holistic picture of business environment in India, the official said.

The bank has added a new parameter government contracting, taking the total number of criteria to 11.

The government will share with the World Bank reform activities undertaken for ease of ding business (EoDB) in May-June this year.

The six parameters where the department is focusing are: enforcing contracts (163rd), resolving insolvency (52nd), starting a business (136th), registering property (154th), paying taxes (115th) and trading across borders (68th).

India has jumped 14 places to rank 63rd out of 190 countries in the World Bank's Doing Business 2020 report on account of significant improvement in resolving insolvency and obtaining construction permits.

The official said that under enforcing contracts, the focus will be on reducing time taken in disposal of cases and improve on quality index of judicial process and increasing awareness regarding electronic case management tool facility for judges and lawyers.

Similarly under the 'registering property' criterion, the focus would be on land titling legislation by all the four cities, land records to reflect actual ownership, and timely disposal of property disputes.

The interventions listed for 'starting a business' include integrated registration for ESIC, EPFO, GST, profession tax with company registration. The exercise assumes significance as the government is targeting to take India among top 50 in the ease of doing business ranking.

This year's ranking by the World Bank would be released in October.

The other parameters where the country has done well include trading across borders, registering property, paying taxes, getting electricity connections and starting a business. However, the improvement in the remaining three parameters -- getting credit, protecting minority investors, enforcing contracts -- are not impressive.

The current ranking is topped by New Zealand. India's ranking was behind Asian peers Singapore (2nd ranked), Hong Kong (3rd), Korea (5th), Malaysia (12th) and China (31st). The US was placed 6th on the list. PTI RR CS

Bengaluru, Kolkata to be included in World Bank's Doing Business Report

The World Bank will now include Kolkata and Bengaluru, besides Delhi and Mumbai, for preparing ease of doing business report to provide a holistic picture of business environment of the country, an official has said.

"The country of the size of India was not properly represented by just two cities, and now with the inclusion of Kolkata and Bengaluru, Indian ranking in the World Bank's report will present a much better picture," the official said.

The report ranks 190 nations based on ten parameters, which includes ease of starting a business, construction permits, getting electricity, getting credit, paying taxes, trade across borders, enforcing contracts and resolving insolvency.

The official added that the exercise to include these two new cities has already been initiated and would be included in the World Bank's ranking in the years to come.

The annual World Bank's Doing Business 2020 report is expected to be released tomorrow.

According to the official, India's rank is expected to improve further in the report from the current 77th position.

India improved its ranking on the World Bank's 'ease of doing business' report for the second straight year, jumping 23 places to the 77th position on the back of reforms related to insolvency, taxation and other areas.

India was ranked 100th in the World Bank's Doing Business 2018 report.

In the 2019 report, India had improved its rank on six out of the 10 parameters relating to starting and doing business in a country.

New Zealand topped the list of 190 countries in ease of doing business, followed by Singapore, Denmark, and Hong Kong.

The United States is placed eight and China has been ranked 46th. Neighbouring Pakistan is placed at 136.

Ranking helps in improving parameters which are essential to attract both domestic and foreign investors. PTI RR CS

World Bank gives Andhra $1+ Bn Support Covering Health, Agri, Energy and Disaster Management

The World Bank, which has dropped a loan proposal for Amaravati project, Sunday said it continues to support Andhra Pradesh with an over one billion USD programme (~ ₹ 6886 Crore) that covers the health, agriculture, energy and disaster management sectors.

This includes a new 328 million USD (~ ₹ 2258 Crore) support to the state's health sector, signed with the Andhra Pradesh government on June 27, 2019, the bank said in a release.

"As the new government sets its development priorities, we stand ready to provide whatever support the state and the Government of India might request," it added.

The World Bank's statement comes in the backdrop of its dropping a 300 million USD loan proposal for the Amaravati Sustainable Infrastructure and Institutional Development Project.

"On July 15, the Government of India (GoI) withdrew its request to the World Bank for financing the proposed Amaravati Sustainable Infrastructure and Institutional Development Project.

The World Bank's Board of Executive Directors has been informed that the proposed project is no longer under preparation following the government's decision," it noted.

This has resulted in a blame game between the ruling YSR Congress and the opposition Telugu Desam Party, with each accusing the other for the bank dropping the loan proposal.

"The Washington-based bank is now not averse to extending loan to AP government according to the latter's priorities. The possibility of increasing the quantum of loan was also not ruled out by the bank," a top official in the Chief Minister's Office said.

He indicated that the government might seek World Bank assistance for funding the flagship Navaratnalu programme that was aimed at improving the living standards of citizens in tune with the Sustainable Development Goals. PTI

World Bank To Issue World's First Blockchain Bond

International financial institution, World bank, issues bonds to back development in developing countries with emerging economy. These bonds are amount close to $50 billion-$60 billion annually. Now, starting this year the World Bank is taking a bold step by creating first bond globally to be created, allocated, transferred and managed using a blockchain technology.

The World Bank has hired Commonwealth Bank of Australia (CBA), one of Australia’s biggest banks, to arrange a pioneering bond issue to be created and run using only blockchain, aiming to make capital raising and trading more efficient by reducing the number of necessary intermediaries.

Named after Australia’s iconic beach, “bond-i” will be a milestone in World Bank's efforts to learn how the bank can advise its client countries on the opportunities and risk that disruptive technologies offer, said World Bank chief information officer Denis Robitaille, in a statement.

The bond-i blockchain platform was built and developed by the CBA Blockchain Centre of Excellence.

With this, World Bank aims to raise about Aus$50 million $36 million, although it could be double that if more investors get involved before the bond is finalized the week of Aug. 20.

“Since our first bond transaction in 1947, innovation and investor satisfaction have been important hallmarks of our success with leveraging capital markets for development,” World Bank Treasurer Arunma Oteh said.

Also Read - Blockchain Will Turn The Internet Into World's Largest 'Stock' Market, Says An Early Crypto Investor

Notably, the blockchain technology used for bond-i bonds will not at all be like one used in Bitcoin, where here anyone can engage in mining, the process of verifying new transactions. Instead, the World Bank is said to be using a private version of Ethereum in which validators must have permission. Ethereum is a decentralized platform for applications. It is powered by Ether - a cryptocurrency, which is in turn powered by the Blockchain technology.

Microsoft’s Azure cloud platform will power the computing infrastructure required for transaction of 'bond-i'.

The transaction is the brainchild of the World Bank’s innovation lab, which has been working on the issue for nearly a year, together with the Commonwealth Bank of Australia.

In June last year, World Bank has launched a blockchain lab, as part of a bid to pilot projects that can improve governance and social outcomes in the developing world. The blockchain lab is now seeking to bring together internal and external participants to work on blockchain use cases of significance to the bank's more than 80 client countries.

The Blockchain Lab serves as a learning, experimentation, and collaboration platform on DLT (Distributed Ledger Technologies) and Blockchain inside and outside the World Bank Group (WBG). Th Blockchain Lab engages and partners with leading technology companies, start-ups, entrepreneurs, innovators and development organizations to experiment, develop, and roll out blockchain-enabled solutions. The Blockchain Lab conducts knowledge-sharing events open to anyone interested in topics related to blockchain and development.

The Lab intends to boost and contribute to increased WBG knowledge and expertise in DLT and Blockchain, and improve its capability to respond to client countries inquiries and needs.

To recall, in April this year, Consensys, which is founded by Ethereum co-founder Joseph Lubin, has signed an agreement with NITI Aayog, a govt. of India's policy think, to build a strong Ethereum blockchain-developer community in India. The company entered India a while back and opened an office in Delhi.

Via - WorldBank.org | References - MIT Technology Review, CoinDesk

India, World Bank Sign $125 Mn Agreement To Invest in Bio-Pharma and Medical Device Innovations

The Government of India and the World Bank today signed a $125 million loan agreement to support India in developing an innovative biopharmaceutical and medical devices industry, which is globally competitive and addresses the country’s major concerns around barriers to affordable healthcare.

The Innovate in India for Inclusiveness Project (I3) will support Government of India’s Biotechnology Industry Research Assistance Program (BIRAC), set up five years ago to support innovative start-ups and collaborations through strategic partnerships.

This project, will nurture next generation technical skills; provide companies with advanced shared facilities to conduct clinical validation; link clinical trial sites with networks of expert advisors and international bodies; and strengthen all institutions involved in the facilitation and adoption of global innovations, technologies, and licensing models.

The agreement for the Project was signed by Sameer Kumar Khare, Joint Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India; Mohd. Aslam, Managing Director, Biotechnology Industry Research Assistance Council (BIRAC); and Hisham Abdo, Acting Country Director, World Bank India, on behalf of the World Bank

BIRAC will now scale-up its efforts across the industry and focus on providing the ingredients that are currently missing in India’s biopharma innovation ecosystem. It will facilitate a more collaborative research and development environment (R&D), leverage the expertise of local and international players from both the public and private sectors, and make India more competitive. It will also help create an ecosystem that facilitates development of a continuous pipeline of products in the health sector. This will help India emerge as a low-cost healthcare provider for the world.

World Bank arm IFC (International Finance Corporation) has already backed quite a few Indian startups like Byju's, Lenskart, Bigbasket and Blackbuck, with ticket sizes upwards of $5 million at Series-B stage and onwards.

The IFC has, of late, been bullish on expanding its venture capital portfolio, with its venture investment portfolio standing at around $500 million till mid-2016. Over the past five-to-six years, IFC has made investments to the tune of $700 million both in direct venture investments and in venture capital funds across 15 countries.

Takeaway for Startups in India from This Agreement

As BIRAC came into existence for motive of supporting early and late stage startups in the field of bio-pharmaceuticals and medical device segment, the capital it will receive from World Bank can be accessed by startups in the form of grant-in-aid by enrolling its assistance programme and incubation it offers.

Additionally, it is to be noted that there's exclusive fund called "Sustainable Entrepreneurship and Enterprise Development Fund" ("SEED Fund") of the Biotechnology Industry Research Assistance Council (BIRAC) hosted by Entrepreneurship Development Center (Venture Center), which is supported by the National Science and Technology Entrepreneurship Development Board (NSTEDB) of the Department of Science and Technology (DST), Government of India.

Startups, working in areas of can get capital from one of the source mentioned above to access the $125 million fund from World Bank.

Source: The World Bank

India, World Bank Sign $125 Mn Agreement To Invest in Bio-Pharma and Medical Device Innovations

The Government of India and the World Bank today signed a $125 million loan agreement to support India in developing an innovative biopharmaceutical and medical devices industry, which is globally competitive and addresses the country’s major concerns around barriers to affordable healthcare.

The Innovate in India for Inclusiveness Project (I3) will support Government of India’s Biotechnology Industry Research Assistance Program (BIRAC), set up five years ago to support innovative start-ups and collaborations through strategic partnerships.

This project, will nurture next generation technical skills; provide companies with advanced shared facilities to conduct clinical validation; link clinical trial sites with networks of expert advisors and international bodies; and strengthen all institutions involved in the facilitation and adoption of global innovations, technologies, and licensing models.

The agreement for the Project was signed by Sameer Kumar Khare, Joint Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India; Mohd. Aslam, Managing Director, Biotechnology Industry Research Assistance Council (BIRAC); and Hisham Abdo, Acting Country Director, World Bank India, on behalf of the World Bank

BIRAC will now scale-up its efforts across the industry and focus on providing the ingredients that are currently missing in India’s biopharma innovation ecosystem. It will facilitate a more collaborative research and development environment (R&D), leverage the expertise of local and international players from both the public and private sectors, and make India more competitive. It will also help create an ecosystem that facilitates development of a continuous pipeline of products in the health sector. This will help India emerge as a low-cost healthcare provider for the world.

World Bank arm IFC (International Finance Corporation) has already backed quite a few Indian startups like Byju's, Lenskart, Bigbasket and Blackbuck, with ticket sizes upwards of $5 million at Series-B stage and onwards.

The IFC has, of late, been bullish on expanding its venture capital portfolio, with its venture investment portfolio standing at around $500 million till mid-2016. Over the past five-to-six years, IFC has made investments to the tune of $700 million both in direct venture investments and in venture capital funds across 15 countries.

Takeaway for Startups in India from This Agreement

As BIRAC came into existence for motive of supporting early and late stage startups in the field of bio-pharmaceuticals and medical device segment, the capital it will receive from World Bank can be accessed by startups in the form of grant-in-aid by enrolling its assistance programme and incubation it offers.

Additionally, it is to be noted that there's exclusive fund called "Sustainable Entrepreneurship and Enterprise Development Fund" ("SEED Fund") of the Biotechnology Industry Research Assistance Council (BIRAC) hosted by Entrepreneurship Development Center (Venture Center), which is supported by the National Science and Technology Entrepreneurship Development Board (NSTEDB) of the Department of Science and Technology (DST), Government of India.

Startups, working in areas of can get capital from one of the source mentioned above to access the $125 million fund from World Bank.

Source: The World Bank

It Takes 29 days To Start A New Business in India, Says World Bank

Yesterday the whole country went Gaga over how India has jumped 12 positions in a period of just one year in the World Bank's 'Doing Business 2016' report. Acquiring the 130th position among 189 economies, the country's this year ranking was a major improvement from its 142nd spot in the year 2014, which was later revised to 134 this year after data corrections.

Later, It dramatically turned out that India never moved 12 spots over last year.

The World Bank's website clarified that India only jumped 4 places, from 134 in 2015 to 130 in 2016. A dramatic change in methodology has meant that the ranking for 2015-a dismal 142-- was updated to reflect a new measurement philosophy. Based on data available as of June 2014 that changed the 142 rank to 130. This further implies that the substantial 8-point jump last year was updated to reflect the ease of doing business of policies implemented by the government in place till June 2014: 11 months of the UPA and 1 month of the current NDA government.

The overall rankings have been calculated on the basis of ten factors, which are-- registering property (138), getting credit (42), dealing with construction permits (183), getting electricity (70), protecting minority investors (8), paying taxes (157), enforcing contracts (178), trading across borders (133), resolving insolvency (136) and starting a business (155th rank).

While everything seems hunky dory from outside, India still has a long way to go when compared to other world powers. Even though India's ranking has improved to 155 from 164 in the year 2014 in terms of starting a business. It still takes 29 days and over 12 procedures to begin a venture in the country.

[cp_quote style="quote_normal_dark"]As per data collected for the report, 'Starting a business in India requires 12.90 procedures, takes 29 days, costs 13.50 per cent of income per capita and requires paid-in minimum capital of 0 per cent of income per capita.[/cp_quote]

Getting construction permits is still a fight for Indian entrepreneurs as the country's position in terms of getting construction permits marginally improved to 183 from 2014's ranking of 184. In terms of getting electricity, the ranking saw a jump of almost 30 positions to 70 from 99 in 2014.

REcent policies implemented by the government, the World Bank said, of forcing entrepreneurs to deposit Rs 100,000 to incorporate a new company have been done away with. That move brings India in line with the 105 countries out of 189 in the Doing Business ranking that have no minimum paid-in capital requirement.

Elaborating on the front of getting electricity, the report said, the utility in Delhi has made the whole process of getting a power connection much faster and simpler as it has eliminated the internal wiring inspection by the Electrical Inspectorate. Talking about Mumbai, it said, "The utility in Mumbai reduced the procedures and time required to connect to electricity by improving internal work processes and coordination."

Everything wasn't an upward movement for India. The country's rank tanked on two fronts - paying taxes and getting credit. India's position declined to 157 from 156 in terms of paying taxes and on the getting credit front, it declined to 42 from 36 last year.

In the light of the recent government's efforts to boost trade and business in India, how do we fare in the list next year, will be a thing to see.