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Role of International Finance Institutions

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Role of International Finance Institutions
ROLE OF INTERNATIONAL FINANCE INSTITUTIONS
BB0030

2013
LOCHIN BAWEJA
BBA (6TH SEMESTER)
Roll No. - 521067514
Center Code - 01665
ROLE OF INTERNATIONAL FINANCE INSTITUTIONS
BB0030

2013
LOCHIN BAWEJA
BBA (6TH SEMESTER)
Roll No. - 521067514
Center Code - 01665

Bachelor of Business Administration-BBA Semester 6
BB0030 – Role of International Finance Institutions- 2 Credits
Assignment Set- 2 (30 Marks)

[Each question carries 10 Marks. Answer all the questions.]
Q1. How has India benefited from International Development Association?
Ans. India and the IDA
India has immensely benefited form the credits granted to her by the IDA. Up to June 30, 1997, India had received massive credit assistance of $ 24,432.9 million in the form of 219 credits to finance her various development projects. This is by far the largest credit assistance that the IDA has given to any single member country so far. The first credit of $ 60 million was granted in June 1961 to assist a programme of road construction and improvement. The second credit of $ 6 million was given in September 1961 for the expansion of tube-well irrigation in Uttar Pradesh. The economic benefits of this project financed through the IDA’sloan had been considerable. The loan had provided finance for the drilling and equipping of 800 tube-wells which have irrigated 320,000 acres of land in Uttar Pradesh. This has increased the value of farm production in the area to the tune of Rs. 10 crores. The IDA granted another credit of $ 10 million for financing the flood control and drainage scheme in Punjab. As a result of the loan, surface drainage problem has been solved over an area of about 8 million acres in the state. In addition, two more credits each of the amount of $ 8 million and $ 4.5 million had been given by IDA to assist the Salandi Project in Orissa for the irrigation of 2,25,000 acres of land and to finance the completion of the Shetrunji Project in Gujarat
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