Shri Arun Jaitley, Finance Minister met Dr. Jim Yong Kim, President World Bank Group on June 30, 2016. Dr. Kim is currently on a 3-day official visit to India. This is his fourth visit to India as the President of the World Bank Group.

During the meeting, issues relating to the Indian economy, key priorities of India and the policy issues of the World Bank Group were discussed.

The Finance Minister highlighted the state of Indian economy, which is expected to perform even better in the wake of good monsoons. He elaborated the key reforms underway and reiterated India’s commitment to rapid and inclusive growth and the maintenance of macro-economic stability. He stated that the focus of the Government is on areas such as non-conventional power generation, Swachh Bharat Abhiyan the nation-wide sanitation campaign, electrification of villages, major and minor irrigation projects, rural roads and infrastructure creation. Recent events such as ‘Brexit’ and their impact were also discussed.

During the meeting, Shri Shaktikanta Das, Secretary, Department of Economic Affairs highlighted the improvement in the Ease of Doing Business ranking of India in 2016 Doing Business Report as compared to the previous year. He elaborated the major steps taken by the Government to further improve the business environment in the country. He emphasized India’s concerns with the proposed revisions in the Environment and Social Safeguards Framework of the World Bank. He also stressed the need for enhanced investments by International Finance Corporation (IFC) in India, particularly in sectors with catalytic development impact.

President, World Bank Group complimented the reforms process underway in India and assured that concerns of member countries on the Environment and Social Safeguards Framework of the World Bank would be addressed. The recently published report of World Bank on ‘Trade Logistics in the Global Economy’ have captured the commendable progress made by India during the recent past in infrastructure creation in the country. He informed that the World Bank is working towards implementation of capital increase to enhance the ability of the Bank to meet the needs of its member countries.

Subsequent to the meeting, the Joint Declaration outlining the collaboration between the World Bank and International Solar Alliance was signed by Shri Upendra Tripathy, Secretary (MNRE) & Chairman (ISA Cell) and Mr. Onno Ruhl, Country Director (India), World Bank in the presence of Finance Minster, Minister of State for Power, Coal, New and Renewable Energy and President World Bank Group. Shri Piyush Goyal, Minister of State for Power, Coal, New and Renewable Energy emphasized that India has demonstrated deep commitment, unparallel in the world, for furthering non-renewable energy in the country. The targets are humungous and aggressive and the Government is committed to ensure their achievement. He stated that the Government is keen to deepen the engagement with the World Bank in the renewable energy sector. However, this requires review of lending conditions such as cost of financing, need for guarantee fee, etc.

An agreement for credit of USD 625 million from the World Bank for “Solar Rooftop PV Program” was also signed by Shri Raj Kumar, Joint Secretary, Department of Economic Affairs on behalf of the Government of India and Mr. Onno Ruhl, Country Director (India), on behalf of the World Bank. The Implementing Entity Agreement was entered by Mr. Karnam Sekar, Deputy Managing Director, SBI and Mr. Onno Ruhl, Country Director (India), World Bank. The project comprises of IBRD loan of USD 500 million, Clean Technology Fund(CTF) loan of USD 120 million and CTF grant of USD 5 million. The project will provide support for Rooftop PV in a focused manner through mobilization of the ‘Aggregate Business Model’ that has been successful in the other parts of the world.

Development financing collaboration deepened as World Bank support for rooftop solar advances while raising safeguard and lending condition concerns. Discussion focused on development financing cooperation, India's infrastructure and reform priorities, and concerns over proposed revisions to the Environment and Social Safeguards Framework and lending conditions. The meeting resulted in a Joint Declaration with the International Solar Alliance and execution of an Implementing Entity Agreement plus a multi component World Bank credit for a Solar Rooftop PV Program, designed to mobilize an Aggregate Business Model for rooftop PV with implementing agency arrangements and World Bank support.