World Bank not opposed to Narmada project: Wolfensohn

by Ashraf Sayed, India Abroad News Service

Gandhinagar, Nov 8 - For the first time in two decades, the World Bank has
tried to dispel the "popular misconception" that it was opposed to the
Narmada dam and urged Gujarat Chief Minister Keshubhai Patel to mount a
"propaganda war" to remove misgivings that the Sardar Sarovar project would
spell environmental disaster.

In a candid confession at the meeting with Patel, his ministerial colleagues
and senior government officials, World Bank president James D. Wolfensohn
regretted that the bank had pulled out of the Narmada project, overlooking
the benefits of the multi-billion inter-state project.

"It is unfortunate that the World Bank could not understand the depth of the
water crisis in Gujarat and had to pull out of the Narmada project," he
admitted while speaking to newsmen.

After listening to an hour-long presentation by Patel and additional chief
secretary (finance) K.V. Bhanujan seeking World Bank assistance for various
projects, Wolfensohn said the government should "create more awareness about
the major features of the Narmada project".

The World Bank chief not only recognized that Gujarat faced a severe water
crisis, leading to exodus of people from certain rural areas to urban
centers in the state, but also agreed to consider financing drinking water
projects.

The Narmada dam project envisages a 138-meter dam across the river at
Vadgam, about 200 km from state capital Gandhinagar. The dam will help the
state meet the drinking water needs of 131 urban centers and 4,720 villages
in drought-prone areas of Saurashtra, Kutch and north Gujarat apart from
creating irrigation facilities, according to state authorities. A riverbed
power plant is also inbuilt in the dam project. Neighboring states of
Maharashtra, Madhya Pradesh and Rajasthan too stand to benefit from the
project.

The World Bank was also keen to fund the state's urban infrastructure
development programs, costing around $2 billion, Wolfensohn said. These
programs include water supply and sewerage treatment, urban sanitation,
solid waste management, housing for urban poor and slum upgrade programs.

Referring to the 10-year social infrastructure agenda of the government, he
said the World Bank recognized the fundamental issues concerning the poor
and downtrodden. It could bring about revolutionary changes in the fields of
health, education and social welfare, Wolfensohn said.

Patel said the World Bank president's visit would remove misgivings among
international financial institutions and would also open a new chapter in
the relations between the state and the bank.

"At the moment, the bank has committed to finance only two major projects
relating to water supply and urban infrastructure development but Gujarat
can now rely on the World Bank," a government official said.