WB, ADB proposal to tap debt market cleared

New Delhi: The central government has cleared the proposal of the World Bank (WB) and the Asian Development Bank (ADB) to raise up to $250 million in rupees from the Indian debt market.

"The in-principle approval to ADB for tapping the Indian debt market for up to $100 million was given last week. WB was given a similar in-principle approval earlier for tapping up to $150 million," say official sources.

WB and ADB have indicated that they would tap the rupee debt market this financial year itself, the sources add. "This would show the growing confidence of the international community in the Indian debt market and currency."

WB is expected to tap the Indian debt market first; it would be followed by ADB," say the sources. "If the response is good, the government may consider allowing a higher amount to be tapped."

ADB, which has decided to step up its lending to India to $2 billion annually from next year, has identified projects in railways, power and road sectors for providing loans, say the sources.