Document of The World Bank Group FOR OFFICIAL USE ONLY Report No. 126667-IN INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL FINANCE CORPORATION MULTILATERAL INVESTMENT GUARANTEE AGENCY COUNTRY PARTNERSHIP FRAMEWORK FOR INDIA FOR THE PERIOD FY18–FY22 July 25, 2018 India Country Management Unit South Asia Region The International Finance Corporation The Multilateral Investment Guarantee Agency This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank Group authorization. i The date of the last Performance and Learning Review for India was October 20, 2015, Report No. 99283-IN. CURRENCY EQUIVALENTS (Exchange Rate Effective as of July 24, 2018) Currency Unit = Indian Rupee (INR) 69.05 INR = $US1.00 FISCAL YEAR April 1 to March 31 ABBREVIATIONS AND ACRONYMS APA Alternative Procurement Arrangements FM Financial Management Financial Management ASA Advisory Services and Analytics FMIS Information Systems Financial Sector Assessment ASEAN Association of Southeast Asian Nations FSAP Program ART Anti-Retroviral Therapy GDP Gross Domestic Product CAG Comptroller and Auditor General GEF Global Environment Fund CLR Completion and Learning Review GHG Greenhouse Gas CCCB Climate Change Co-Benefit GoI Government of India CPF Country Partnership Framework GP Global Practice CPS Country Partnership Strategy GST Goods and Services Tax International Bank for CSR Corporate Social Responsibility IBRD Reconstruction and Development Information and Communications DA Distressed Asset ICT Technology DBT Direct Benefit Transfer International Development DEA Department of Economic Affairs IDA Association Australian Department of Foreign Affairs DFAT IFC International Finance Corporation and Trade U.K. Department for International DFID IEY Investing in Early Years Development Department of Industrial Policy and DIPP IMF International Monetary Fund Promotion DLI Disbursement-Linked Indicator InfraSAP Infrastructure Sector Assessment DPF Development Policy Financing JMP Joint Monitoring Program DRM Disaster Risk Management ECE Early Childhood Education ITI Industrial Training Institute EU European Union LIS Low Income States FDI Foreign Direct Investment LMIS Labor Market Information System FLFP Female Labor Force Participation M&E Monitoring and Evaluation MDGs Millennium Development Goals RBI Reserve Bank of India ii MFD Maximizing Finance for Development RE Renewable Energy MIGA Multilateral Investment Guarantee Agency RWSS Rural Water Supply and Sanitation MPA Multi-Phase Approach SBL Single Borrower Limit MSME Micro, Small, and Medium Enterprise SCD Systematic Country Diagnostic NAS National Achievement Survey SCS Special Category States NCAP National Clean Air Program SCs Scheduled Castes NDA National Democratic Alliance SD Skills Development NDC Nationally Determined Contribution SDG Sustainable Development Goals NGO Non-Governmental Organization SHG Self-Help Group Small Industries Development NITI National Institution for Transforming India SIDBI Bank of India NIIF National Infrastructure Investment Fund SIMO Skill India Mission Operation NLTA Non-Lending Technical Assistance SME Small and Medium Enterprise NPL Non-Performing Loan SP Social Protection NRDWP National Rural Drinking Water Program SSC Sector Skills Council Skills Strengthening for Industrial NSQF National Skills Qualifications Framework STRIVE Value Enhancement NSSO National Sample Survey Office STs Scheduled Tribes NTFP Non-Timber Forest Products T&D Transmission & Distribution O&M Operations & Maintenance TA Technical Assistance ODF Open Defecation Free TF Trust Fund OOPP Out-of-Pocket Payments ULB Urban Local Body PFM Public Financial Management UNICEF United Nations Children's Fund U.S. Agency for International PforR Program for Results USAID Development PPP Public-Private Partnership VC Venture Capital PRI Panchayat Raj Institution WBG World Bank Group PRSF Partial Risk Sharing Facility WHO World Health Organization RAS Reimbursable Advisory Services WUE Water Use Efficiency IBRD IFC MIGA Vice President: Hart Schafer Nena Stoiljkovic Keiko Honda Director: Junaid Kamal Ahmad Mengistu Alemayehu Merli Baroudi Task Team Leaders: Charles Undeland Jun Zhang Persephone Economou Bhavna Bhatia Shamsher G. Singh Gero Verheyen iii iv FY18-FY22 COUNTRY PARTNERSHIP FRAMEWORK FOR INDIA Table of Contents I. INTRODUCTION...............................................................................................................................1 II. COUNTRY CONTEXT AND DEVELOPMENT AGENDA ..........................................................................6 A. COUNTRY CONTEXT .............................................................................................................................. 6 B. DEVELOPMENT AGENDA..................................................................................................................... 10 III. THE WORLD BANK GROUP COUNTRY PARTNERSHIP FRAMEWORK: A COMBINED FOCUS ON ‘WHAT’ AND ‘HOW’ THE WBG WILL DELIVER .................................................................................... 13 A. THE ‘WHATS’: FOCUS AREAS AND OBJECTIVES .................................................................................. 14 B. THE ‘HOWS’: FOUR APPROACHES FOR SMARTER ENGAGEMENT ...................................................... 20 C. CROSS-CUTTING THEMES ................................................................................................................... 29 D. STAKEHOLDER CONSULTATIONS ........................................................................................................ 33 E. IMPLEMENTING THE FY18-FY22 COUNTRY PARTNERSHIP FRAMEWORK .......................................... 34 IV. MANAGING RISKS ....................................................................................................................... 41 ANNEXES ......................................................................................................................................... 43 Annex 1. Country Partnership Framework Results Matrix ................................................................... 43 Annex 2. India FY13-17 Country Partnership Strategy Completion and Learning Review ................... 82 Annex 3. Selected Indicators of Bank Portfolio Performance and Management .............................. 160 Annex 4. Operations Portfolio (IBRD/IDA and Grants)....................................................................... 161 Annex 5. Statement of IFC’s Committed and Disbursed Outstanding Investment Portfolio ............. 166 Annex 6. IFC India Advisory Services – Active Portfolio Projects ....................................................... 175 Annex 7. Summary of Country Opinion Survey and Stakeholder Consultations ................................ 176 v WORLD BANK GROUP COUNTRY PARTNERSHIP FRAMEWORK FOR INDIA (FY18–22) I. INTRODUCTION 1. India is in a period of unprecedented opportunity, challenge, and ambition in its development, requiring the World Bank Group (WBG) to reposition its partnership with the country. Having already reached middle income status, India has the aspirations of bettering the lives of all its citizens by becoming a high-middle income country by 2030, well before the centenary of its independence. Importantly, India has added to the speed and scale of this commitment, the principle of sustainability. Its ability to achieve this goal of rapid, sustainable development will have profound implications for the world. Indeed, India’s success will be central to the world’s collective ambition of achieving the targets of ending extreme poverty and promoting shared prosperity and the 2030 Sustainable Development Goals (SDGs). At the same time, India’s growing economic and political stature and the relevance of its experience, know-how and investments to other nations mean that the country is well-positioned to play a greater leadership role in the global arena. This Country Partnership Framework (CPF) -- the first since the country’s graduation from IDA to IBRD -- is being formulated to respond to this challenging context of a dynamic and increasingly global India. It charts a path for how the World Bank, IFC and MIGA will leverage their relative strengths and value propositions to answer the call of today’s India to deliver stronger development outcomes, nationally and globally. 2. India’s development trajectory builds on significant achievements in recent years. India has reduced its extreme poverty rate from 46 percent to 21 percent in the two decades up to 2011, with World Bank estimates indicating continued reduction in more recent years. Already the third largest economy in the world in purchasing parity terms, the country is expected to grow at over 7 percent per annum, with aspirations for a possible 8 percent per annum in the coming years. Wide-ranging and ongoing macroeconomic, fiscal, tax and business environment reforms have buttressed this progress. For instance, recent business climate reforms helped India improve its Ease of Doing Business ranking by 30 places in 2018. India is promoting cooperative and competitive federalism, marked by a significant devolution of revenues and responsibilities to the states while fostering friendly competition and collaboration among states to drive better performance and country’s overall development. The recent implementation of the Goods and Service Taxes (GST) is an example of both India’s federal model at work and the country’s commitment to reforms. Finally, navigating through the federal system at the sectoral level, India has focused on reshaping the policy approaches to human development, social protection, financial inclusion, rural transformation, and infrastructure development to better achieve growth, inclusion, and sustainability. 3. To deliver on its aspirations, however, India needs to address emerging challenges and overcome certain persistent constraints. First, while growth has been strong, to safeguard its trajectory, India will need to adapt continuously to a rapidly evolving, competitive global economy and accompanying technological shifts. Second, the country needs to spread more equitably both the gains of economic progress and access to economic opportunities in order to build a more stable, productive, inclusive and resilient society. This challenge is not only about inclusive growth – ensuring that benefits of growth are distributed across the population in terms of, for example, access to services or social protection – but, importantly, also about inclusion for growth – ensuring that all citizens, particularly women and groups from disadvantaged social backgrounds, and all states of the federation have access to economic 1 opportunities. The agenda of inclusion for growth offers India a platform for supporting development that enables a convergent India for all people and regions to emerge. 4. In this context, the WBG’s Systematic Country Diagnostic (SCD) distills three key priorities for maintaining the country’s trajectory of poverty reduction and high growth. First, India’s rapid growth pattern will need to embrace much more efficient use of the country’s resources, particularly water and land, to remain sustainable. Second, India needs to foster inclusiveness both for poverty reduction and as a key condition for sustaining high rates of economic growth by generating more quality jobs and investing in human capital. Only a robust inclusion agenda will allow the country to productively absorb the 13 million people entering the working age population every year. India needs to build the environment to catalyze firms of all sizes to grow in their market share, fit into global supply chains, and to enhance firm capability. At the same time, India will need to significantly upgrade the reach, quality, timeliness and efficiency of its investments in human capital to widen the beneficiaries of economic growth and build a labor force to keep the country competitive in the 21st century. Arresting and reversing the decline in labor force participation of women will be central to this agenda. 5. The third SCD priority emphasizes the need to strengthen the agility, performance and responsiveness of India’s public-sector institutions. Given the role of the government in India’s political economy, the implementation capability of the public sector has large and determinative effects on the magnitude, quality and inclusivity of economic growth. To date, the pace of implementation has lagged behind the ambitions of India’s reform agenda with significant service delivery gaps persisting, including the reliability of water and power supply, transport connectivity, and quality of education, that belie its middle-income status. India needs to bring greater efficiency, accountability, and stronger governance. This means making public institutions more competitive and ensuring that policy reforms and input investments better translate to last mile service delivery and development impact. Central in this reform focus is the interface of the public and private sectors to better enable private sector contributions on India’s economic and social development objectives. Furthermore, as India increasingly decentralizes resources – states’ share of government spending increased from 45 percent to over 60 percent in the last eight years – and adopts an approach of cooperative and competitive federalism, states are becoming a more important locus for strengthening capabilities and bridging implementation gaps. Investing in state capability across the public-private divide, the federal system, and direct services to citizens is at the heart of addressing the implementation challenge which guides the formulation of this CPF. 6. The success of India’s development trajectory will have profound consequences beyond its national borders. Home to the largest number of poor of any country, India’s elimination of poverty is a sine qua non to ending global poverty by 2030. The country’s growth will be an ever more important contributor to global economic health and trade. Whether India successfully propels its high growth with a low carbon footprint will significantly influence whether the planet can avoid reaching the 2 degrees global warming threshold. On crucial issues ranging from managing scarce water resources to modernizing food systems to improving rural livelihoods to ensuring that megacities become engines of sustainable economic growth and inclusion, India’s development trajectory will have a major influence on the rest of the world. Cognizant of its global responsibility, India has pledged to ambitious Nationally Determined Contributions (NDCs) to address climate change; embarked on a global program to promote investment 2 in solar energy by sponsoring the International Solar Alliance; is developing a global program on resilient infrastructure as well as supporting the capacity of countries in sub-Saharan Africa. 7. In addition to India’s impacts on global public goods, its growing influence on the delivery and financing of sub-regional public goods in South Asia is an important window for the WBG to leverage . In particular, the potential of electricity trade, connectivity and logistics, and the expansion of border economic activities in the Northern and Eastern part of South Asia offers the WBG an opportunity to take a regional focus in this CPF. While recognizing the politics of regional coordination is challenging in South Asia, opportunities are emerging across several borders of the region and will require agility and foresight to link the CPF to a regional agenda. 8. Overall, the CPF will meet the development agenda of today’s India through a balanced focus on what areas merit attention and how to engage India to deliver results. The disciplined combination of the “Whats” and “Hows” represents the retooled operational model of the CPF. The “Whats” of the CPF are derived from a triangulation of (i) India’s development priorities as outlined in its FY2017 -19 action agenda as well as national missions and programs, (ii) the SCD’s assessment of India’s challenges in sustaining progress towards the twin goals, (iii) the WBG’s comparative advantage in the country; and (iv) lessons derived from decades of WBG engagement in India. Over the upcoming CPF period, the World Bank, IFC and MIGA will focus on three substantive areas: (i) promoting resource efficient growth; (ii) enhancing competitiveness and enabling job creation, and (iii) investing in human capital. These three “What’s” of the CPF will be combined with an application of four distinctive “Hows”: (i) leveraging the private sector; (ii) strengthening public sector institutions; (iii) engaging a Federal India; and (iv) promoting a “Lighthouse India” that connects practical know-how for the benefit of India and the wider world. 9. The four “Hows” represent a suite of impact multipliers – mutually reinforcing approaches designed to significantly increase the WBG’s value proposition for India. First, the WBG will continue to shift its emphasis from serving as a “lending Bank” to playing the role of a “leveraging Bank”. In its leveraging role the WBG brings its potential contribution through knowledge, convening, and implementation platforms and by leveraging government’s programs to address development challenges at scale. These will remain going forward in implementing the CPF. At the same time, central to this CPF is a systematic and comprehensive approach to crowd in private sector finance and expertise through complementary and coordinated activities by IBRD, IFC, and MIGA. Maximizing finance for development through these efforts is a requisite for achieving impact in India and the combined forces of the World Bank Group will be focused on growing the “leveraging Bank” in India. Second, the WBG will selectively and strategically engage various levels of government to capitalize on the incentives and opportunities afforded by India’s cooperative and competitive federal system. This approach will include selective engagement with transformational national programs, and developing strategic state partnerships to improve implementation capability and address state-specific development priorities. The focus on state partnership involves moving away from a focus on individual operations to a focus on programmatic approaches that enhance state capability. Not all states can be covered in this manner; the focus will be on a cluster of states that are representative of the Indian diversity, including some low-income states and using these states as learning centers – or Lighthouse states -- for others. This approach recognizes that the average size of Indian states is larger than the average size of countries world-wide and that in the context of such sub-national size – where the state of Uttar Pradesh is size of Brazil – a more 3 programmatic and holistic approach is needed towards state engagement. Third, the WBG will support GoI’s efforts to improve the effectiveness of certain public-sector institutions – alleviating institutional rigidities, aligning incentives, improving human capital and accountability mechanisms. Fourth, WBG support for a “Lighthouse India” will create and curate knowledge and know-how generated within the WBG program and India more broadly and systematically disseminate it across India and with the outside world. Lighthouse India will advance new analysis and knowledge creation and ensure that it is articulated, disseminated and socialized in forms that lead to wider application. As India is bending its own arc of progress, the WBG can help illuminate its lessons to others around the world. Taken together, the “How” multipliers will help WBG activities deliver impact at scale. 10. The CPF’s “Whats” and “Hows” reflect a maturing partnership with India. For a country of the size, scale, and stability like India, dramatic inflection points are not expected when moving from one country partnership to another. Instead, such shifts offer both an opportunity to emphasize and expand aspects of past engagements that have become more relevant and start responding to new circumstances as they appear. Gradualism and evolution therefore define the changes underlying this CPF: from extreme poverty to include upward mobility and protecting against vulnerabilities through social protection systems; from access to basic services to also improving their quality and financing; from standardized national schemes to adaptive programs that respond to state and local conditions; from single-sector interventions to more holistic approaches that address complex challenges; from individual projects of service delivery to institutions of service delivery – all towards achieving impact at scale. WBG operations will be increasingly managed as a portfolio of strategic engagements which combine to catalyze systemic and sustainable improvements towards critical development objectives, retaining agility to redirect resources and efforts based on unfolding learning. Importantly, unlike previous country partnerships, this CPF anchors the WBG’s strategic engagement through the lens of the “hows” of implementation, state capability, and learning. 4 Box 1. India and the World Bank Group: 70 years of Evolving Partnership A founding member of both the World Bank and IFC, India continues to be the Bank’s largest borrower and country with IFC’s largest portfolio exposure and client for advisory services. Whereas the initial emphasis in the 1950s was on infrastructure, development finance, and industry, the thrust of its engagement through the 1960s and 1970s was agriculture in support of the Green Revolution. The 1980s saw a rapid increase in lending and investments across multiple sectors, primarily to public sector enterprises. By the early 1990s, the World Bank’s involvement shifted to support for improved macro-economic management and liberalization of the economy, with structural reforms and policy-based lending focusing on poverty reduction and broad based human development. This was followed in the late 1990s by a focus on selected states which focused on fiscal and sectoral reforms, notably energy reforms. Entering the 21st century, the WBG combined support for poverty reduction and the achievement of the Millennium Development Goals (MDGs) with continued strategic focus on reform-oriented states. At the same time, it expanded its dialogue with and support to the poorer states, with a shift in World Bank/IDA lending during 2004–08 at two levels: first, to national programs for scaling up and achieving the MDGs, including in the areas of primary education, nutrition, and health; and second, to low-income states (LIS) for poverty reduction. World Bank/IDA lending also increased significantly, as did the average size of operations, with several signature projects exceeding US$1 billion. During the last decade, besides a continued focus on rapid, inclusive growth and sustainable development through centrally sponsored programs, the WBG expanded its engagement to a larger number of states across several sectors, with increased effectiveness of service delivery as one of the main criteria for engagement. More recently, the last Country Partnership Strategy (CPS) aimed to accelerate poverty reduction and increase shared prosperity through three engagement areas: integration, transformation, and inclusion. It rebalanced the WBG’s engagement toward LIS and, at the same time, supported innovative projects in non-LIS states and at the national level. Meanwhile, the government adopted a ‘finance-plus approach’, recognizing the World Bank’s comparative advantage in bringing global knowledge to bear together with its financing. Finally, India graduated to low- middle-income status and transitioned out of IDA. In the first few decades of its engagement in India, IFC helped establish and finance a number of companies that later became leaders in areas as diverse as financial inclusion, air transport, telecommunications, housing finance and energy. More recently, IFC has developed strategic approaches that have allowed it to create markets and achieve impact with national or sectoral significance. Examples include the microfinance sector, with which IFC engaged at a time of crisis to help build strong and stable microfinance institutions to expand inclusion and develop sector policies and standards. Today approximately 50 percent of disbursements are made through IFC’s investee clients. In the capital markets, IFC worked with the regulator to launch offshore and onshore masala/maharaja bonds, build regulatory processes and a yield curve through a series of issuances to address lack of long-tenor, local-currency market instruments. Through this instrument Indian entities accessed international capital markets without exposure to foreign exchange risks. IFC has used a variety of products including PPP and advisory services, and innovative products such as green bonds and treasury tools. Finally, IFC and the World Bank have contributed to developing the renewables energy (RE) market in India. IFC investee generation companies and financial intermediaries have contributed about 20% of the incremental renewable energy generation capacity in India over the last five years. This CPF builds on this record and lessons of past engagement. The approach going forward will emphasize strengthening implementation capability, providing India with more agile and impactful support from all parts of the WBG, and partnership with India in engaging the rest of the world in pursuit of global development goals. 5 II. COUNTRY CONTEXT AND DEVELOPMENT AGENDA A. COUNTRY CONTEXT Social and Political Context 11. India’s large, vibrant, and complex democracy has yielded broad political consensus around policies to drive inclusive economic progress. Over recent decades, successive Indian governments, civil society, and the private sector have expressed a national aspiration and motivation to tackle poverty and create conducive conditions for shared prosperity. In the run-up to national elections scheduled for May– June 2019, discussion on nuances of specific policies and priorities animates the world’s largest democracy. However, there is no debate about safeguarding India’s economic achievements and expediting its transition from a low-middle-income to a high-middle-income country by 2030. This transition will be driven by a more globally competitive private sector and government that improves its regulatory and service delivery performance. Furthermore, in the context of India’s federal system, there is a recognition across the mainstream political spectrum that India’s gains as a nation can only be secure if such gains bring convergence rather than divergence of economic welfare among states and among population groups. 12. India has demonstrated robust, lasting commitment to economic transformation. Notable long- pending reforms have been launched in recent years, setting the stage and precedent for making other tough but necessary decisions. The government is carrying out several flagship programs to tackle some of the country’s largest social challenges. The government has employed policy, technology, and outreach innovations to improve effectiveness and inclusiveness of its programs. For example, financial inclusion reforms have led to the creation of over 300 million bank accounts, while vigorous efforts are ongoing to expand health insurance for the poor and vulnerable and end open defecation. Economic Developments and Outlook 13. India’s long-term gross domestic product (GDP) growth has become more stable, diversified, and resilient. Economic reforms beginning in the early 1990s unleashed higher growth, leading to India becoming the second fastest growing large economy in the world over the past 25 years. In the past few years, India has intensified reforms, notably in implementing a GST that harmonizes the tax regime across the country—thereby reducing distortions and facilitating domestic trade—and business climate reforms which contributed to India improving by 30 places in global rankings on Ease of Doing Business. Annual growth has exceeded seven percent for the past ten years, driven primarily by robust private consumption, a resilient services sector, and a revival in some industrial activities. At the same time, increases in investment and exports have slowed, making their contribution to growth half of what they were in the years preceding the 2008 global financial crisis. The country’s diverse drivers of growth and room for improvement in some areas underpin a strong growth trajectory going forward. India is a middle- income country with aspirations of achieving high-middle-income status by 2030. 14. Annual growth rates are projected to average 7.5 percent in coming years, overcoming a short- term dip in 2017. Demonetization and difficulties in rolling out the new GST in 2017 dampened growth to a low of 5.7 percent in the first quarter of Indian FY17/18 (April–June 2017), but growth has since accelerated, reaching 7.2 percent in the quarter ending December 2017. Manufacturing and 6 construction—sectors reportedly most affected by GST implementation and demonetization—have accelerated in the last two quarters of 2017. Investment rates have similarly increased, though they remain low in comparison to historical levels. 15. India’s strong performance on other macroeconomic and fiscal indicators is expected to continue. Consumer inflation has declined during the last four years, mainly due to lower food and fuel prices; while inflationary pressures increased during the 2nd half of 2017, it remains below the 4 ± 2 percent target of the Reserve Bank of India (RBI). It is expected to remain moderate if global prices of key commodities such as crude oil do not spike. While India’s current account deficit widened in the past year due to strong import growth, it was amply financed by capital, mainly portfolio inflows which increased in the first half of FY17/18. Foreign reserves reached an all-time high of $411 billion or nearly 10 months of imports in January 2018 and foreign direct investment has remained broadly stable at 3 percent of GDP per year. Except for Indian FY15–16, the overall fiscal deficit relative to GDP has declined consistently since Indian FY11–12, with a modest increase in states’ fiscal deficit offset by a decline in that of the center. Similarly, the overall debt to GDP ratio has gradually declined during the last decade due to high growth and a reduced primary deficit. This trend is expected to continue - by Indian FY19/20, the fiscal deficit is expected to decline to 5.6 percent of GDP (from 6.4 percent in Indian FY16/17) and the debt to GDP ratio to 64.9 percent (from 69.2 percent in Indian FY16/17). 16. Meeting the Government’s goal of over eight percent growth per year will require substantial growth in private investment while maintaining long term macroeconomic and fiscal stability. India faces four key challenges to accelerate growth in the near term. First, private investment is constrained by past leveraging and subdued market demand. Going forward, ensuring policy certainty, bolstering the investment climate, and de-risking the private sector will be important. Second, addressing the stress on bank balance sheets – non-performing loans (NPLs) amount to almost seven percent of GDP -- and reviving bank credit to support growth will be critical. Implementation of the new Insolvency and Bankruptcy Code and recent efforts toward recapitalization of public sector banks that may ease stress on the banking sector and reinvigorate bank credit are important steps but will need to be backed up by wider reforms. Third, exports growth has been constrained by both domestic and external factors, and India’s share in world exports has declined or stagnated over the past five years. Among the many preconditions for India to improve its competitiveness are addressing infrastructure deficits and carrying out reforms to land, labor, and financial markets to ensure the continued competitive supply and use of key production inputs. Further, building on recent improvements that contributed to its higher Ease of Doing Business ranking, India can benefit significantly from further strengthening its business environment. Fourth, as India has increased the level of integration with the rest of the world in recent years, it could benefit from the revival in the global economy and trade volumes, both of which are poised to grow at healthy rates in the near term. While oil prices pose less of a risk for the Indian economy, the expected normalization of monetary policy by the United States and other advanced economies is likely to tighten financing conditions. Poverty Trends 17. India has achieved significant albeit incomplete progress in reducing poverty in the past two decades, reflecting sustained high growth as well as higher elasticity of poverty reduction to growth. Using the international poverty line of $1.90 per person per day (in 2011 purchasing power parity, PPP), 7 the share of the population living in poverty was more than halved (46 percent in 1993 to 21 percent in 2011). Based on this line, India lifted more than 160 million people out of poverty in recent years, a figure surpassed only by China. World Bank estimates indicating continued poverty reduction in more recent years suggest that India is comfortably on track to eliminate extreme poverty (i.e. below 3 percent of the population) by 2030.1 18. Urbanization and rising labor earnings have driven recent poverty reduction. Greater integration of the economy meant that rural growth, though still important, was displaced by urban growth as the most important contributor to poverty reduction. From the perspective of household incomes, rising labor earnings due to movement of labor from agriculture to non-farm work and an unprecedented rise in wages for unskilled labor propelled rapid poverty decline between 2005-12. Demographic changes, including a declining dependency ratio, and transfers also contributed, but rising labor earnings were by far the most important source of poverty reduction. Advances into the middle class are at risk, however, for India faces a growing jobs deficit with insufficient creation of good quality jobs and declining employment rates amongst women. At the same time, sustaining mobility through urbanization will require that India improves urban management to address congestion, pollution, and infrastructure challenges that hinder inclusion and productivity gains from agglomeration. 19. While living standards have improved for almost all Indians, divergences are widening in some key respects. At 0.36, India’s Gini coefficient2 may appear low by global standards. However, the measure is tainted by the large difference in consumption growth between household survey and national accounts data. Other metrics, such as the top 1 percent’s share of wealth or income inequality, suggest that inequality is higher. Consumption growth by the bottom 40 percent improved significantly after 2005, but was lower than the aggregate level. Moreover, poverty reduction among some population groups, such as Scheduled Tribes (STs) and Scheduled Castes (SCs), fared worse, falling increasingly behind that of other social groups. Disparities between urban and rural settings remain a challenge in India (Table 1). Table 1. Profile of India's Poor and Bottom 40 percent of the Population Share of population (%) Poor Non-poor Bottom 40% Top 60% Living in rural areas 82 68 82 64 Scheduled Tribes and Scheduled Castes 43 24 38 21 Illiterate (ages 15+) 45 26 43 24 Completed secondary school and above (ages 15+) 15 37 17 40 Have access to electricity 60 84 65 88 Own cooking stove 28 63 34 69 Own two-wheeler 6 33 10 39 Own a refrigerator 3 26 4 32 Own mobile phone 68 91 74 93 Source: NSS Consumption Expenditure 2011-12, Type 1. 1 This projection assumes a baseline rate of 21.2 percent at the international poverty line of $1.90 per person per day (in 2011-12 PPP). However, recently improved consumption data suggest a substantial reduction in poverty—to 12.4 percent in 2011-12, and, with that baseline, if past trends continue, extreme poverty would be eliminated in less than one decade. 2 The Gini coefficient is an index of consumption inequality, from 0 signaling perfect equality, to 1 for perfect inequality. 8 India’s States: The Key Arena for Addressing Development Challenges 20. The states of India are diverse economies with substantially different growth and poverty characteristics. Some of India’s states would be large countries (Uttar Pradesh, for example, has more people than Brazil) while several states in the Northeast have populations of only a few million people. There are also significant differences in GDP among states: in 2015, the GDP of the five poorest states was only 15 percent of that of the richest state, and just six states—Bihar, Gujarat, Karnataka, Maharashtra, Tamil Nadu, and Uttar Pradesh—accounted for over half of India’s total growth (Figure 1). State GDP growth rates in the preceding decade (2005–15) varied from 5.2 percent to 11.5 percent. While services have driven growth in most states, the sectoral composition of growth also varies (Figure 2). For example, between 2012–15, services dominated in states such as Goa and Karnataka, agriculture represented nearly half of growth in Madhya Pradesh, and industry was the primary growth driver in Chhattisgarh and Uttarakhand. At the same time the eight LIS3 account for 48 percent of the population, but 65 percent of India’s poor. With the exceptions of Bihar and Rajasthan, LIS grew more slowly than other states between 2005 and 2015. Poverty reduction in these states was also less responsive to economic growth. Figure 1. Gross State Domestic Product, Figure 2. Sectoral Contribution to GSDP Per Capita 2015-16 (Current Prices) Growth by State (2012–15 avg.) Goa Andhra Pradesh NCT of Delhi Assam Sikkim Bihar Chandigarh Chattisgarh Haryana Puducherry Goa Maharashtra Gujarat Uttarakhand Haryana Kerala Himachal Pradesh Gujarat Jharkhand Himachal Pradesh Karnataka Karnataka Tamil Nadu Kerala Telangana Madhya Pradesh Andaman & Nicobar Maharashtra Punjab Mizoram Manipur Andhra Pradesh Meghalaya Nagaland Mizoram Chhattisgarh Nagaland Rajasthan Odisha Tripura Meghalaya Punjab Odisha Rajasthan Assam Tamil Nadu Madhya Pradesh Telangana Jharkhand Uttar Pradesh Manipur Uttar Pradesh Uttarakhand Bihar Delhi - 2,000 4,000 6,000 -50% 0% 50% 100% (USD) Agri Inds Services 3Assam, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, and Uttar Pradesh are considered LIS, based on their per capita GDP. The small northeastern Special Category States (Manipur, Meghalaya, Tripura, Nagaland, and Mizoram) also have low per capita GDP 9 21. States are increasingly empowered, funded, and encouraged to lead in addressing their specific development challenges. India is evolving from a traditional emphasis on redistribution to achieve convergence to promoting cooperative and competitive federalism to encourage subnational dynamism to address local challenges. States now have more resources available to play this role as their proportion of total government spending has increased from 45 percent to over 60 percent from FY10/11 to FY16/17, while tied transfers have been cut in half. The devolution of authority, responsibility, and resources to states recognizes that ‘one size fits all’ solutions are often not optimal in a country of such diversity and complexity. The National Institution for Transforming India (NITI) Aayog, the GoI’s premier policy-focused think tank, is actively promoting states’ dynamism through technical support and developing systems to benchmark and compare their performance. For instance, NITI Aayog launched the state health index in 2017 to create ‘peer pressure’ among the states to improve service delivery. The GoI has also developed an extensive ease of doing business rating system for states—analogous to WBG’s rating system—to spur competition on business climate reforms. B. DEVELOPMENT AGENDA Government Priorities 22. The GoI’s priorities are laid out in its 3-year action agenda (FY2017-19) and various national “missions” and flagship programs in support of key development objectives, while a medium -term vision for New India@2022 is under preparation. Key GoI priorities are: enhanced agricultural productivity through land, market, and subsidy reforms, with the goal of doubling farmer’s incomes by 2022; enhanced industry, trade and services to boost productivity and create high wage jobs, including a manufacturing and export-based strategy; balanced growth nationwide; and an inclusive society. The Government is seeking to improve the India’s competitiveness through promoting skills development, catalyzing entrepreneurship and strengthening connectivity, including multi-modal transport logistics. Over the long term, the government aims for a GDP of $7.5 trillion and a poverty rate of five percent by FY2031, with an average annual growth rate of over 8 percent. 23. National “missions” to improve the well-being of India’s citizens and reduce vulnerability further reflect GoI priorities. Key missions include making India open defecation free, provision of 24X7 electricity supply, road connectivity to all villages, provision of housing to all poor, and financial inclusion. The Government has additionally launched a National Nutrition Mission and a National Health Protection mission over the past year, reflecting the importance it places on investing in human capital. Finally, the GoI is carrying out several national missions in support of its strong commitment to address climate change and disaster risks, including the National Solar Mission, National Mission for Enhanced Energy Efficiency, the Mission for Sustainable Agriculture, and the Green India Mission. 24. The overarching framework of the government’s implementation strategy to achieve priorities is rationalization of public expenditure, improved fiscal management and strengthening enablers for growth. The GoI is supporting competitive and cooperative federalism, with states at the forefront of carrying out reforms; governance reforms focused on anti-corruption, procurement, regulation, and taxation improvements; sector-specific reforms designed to enhance competition, efficiency, productivity and quality; investment in science, technology and innovation ecosystems; improving the business 10 environment at the national and state levels to promote domestic and foreign investment as well as public-private partnerships. WBG Systematic Country Diagnostic 25. The SCD identified three main constraints to sustaining high rates of growth and poverty reduction in the coming five years. First, growth will need to be sustained, but in a manner, that becomes more resource efficient given the country’s low per capita natural resource endowment and the impacts of climate change. Second, growth will also need to be inclusive to maximize utilization of the country’s human resources and address inequality. Third, the country will need to strengthen the effectiveness of the public sector especially in delivering services and enabling the private sector to thrive and drive economic growth. These challenges are summarized in the following paragraphs. 26. India’s high growth is integral to progress on the WBG’s twin goals, but its growth pattern will need to adjust to become more resource efficient and address the consequences of climate change. This will require, among others, that land, a particularly scarce resource, is used more productively—in urban areas by the spatial transformation of cities achieving ‘agglomeration economies’ and in rural areas by increased agricultural productivity. Agriculture needs to shift from its traditional food security orientation to a modern production system resilient to climate change; it also needs to address the complex web of subsidies which, though well-intentioned when introduced, are now counterproductive, delivering neither distributional benefits nor productivity gains. India is among the most water-stressed countries in the world. Water management policies need to shift water allocation to higher-value uses and increase the value of water use within sectors. About 250 million people still lack access to electricity and frequent power outages negatively impact firms’ performance and economic growth. More generally, India’s rapidly growing economy needs investment in infrastructure of an estimated 8.8 percent of GDP or US$343 billion a year on a climate-adjusted basis over 2016–30. How India addresses these gaps and meets significant expected growth in energy demand will have important global, national, and local implications. 27. Inclusion through more and better jobs and investment in human capital is critical to sustaining India’s positive development trajectory. An estimated 13 million people enter the working-age population each year but only 3 million new jobs were generated annually between 2005 and 2012. A particular challenge lies in India’s declining female labor force participation (FLFP), which is among the lowest in the world despite gains in overcoming gender gaps in education. A more enabling business environment is needed to unshackle the private sector, the engine of growth and job creation. Policies and investments for promoting productivity growth, addressing connectivity deficits (including with respect to roads, ports, and telecoms), expansion of firms’ capabilities to innovate, maximizing efficiency gains from technology while handling disruptions arising from technological change, and developing a more skilled workforce are required. India will also need to address the large amount of non-performing loans in public sector banks that significantly constrain credit to the private sector. At the same time, more investment in India’s human capital—in health, education, and skills—is urgent and integral to sustaining high growth over time. India needs to do better in ‘investing in children’s early years’—in health, nutrition, early childhood development—as a critical down payment to long term competitiveness. Stunting affects 30% of under 5 children and nearly 60% from poor household. India’s learning outcomes and health indicators have shown little or no improvement despite significant investment, pointing to the need to increase the quality of service provision in these areas. At the same time, India will need to improve the 11 effectiveness of social protection (SP) systems to increase resilience to shocks and forestall a return to poverty among the vulnerable population. 28. Meeting the aspirations of a middle-class economy will require a more responsive and effective public sector. India’s public sector needs to transform itself from a focus on meeting minimum requirements of service delivery to finding ways to ensure higher quality services and regulation that will ensure socioeconomic inclusion and a thriving private sector. While many bold, innovative measures have been launched in various sectors and parts of the country, scalable solutions have remained elusive. Four elements are vital to strengthen the public sector’s capability: (i) enhanced accountability and efficiency to boost returns on public spending and provide better services; (ii) an adequately resourced, right-sized, and right-skilled public administration to carry out its regulatory and service delivery functions; (iii) awareness and ability to interface effectively with the private sector, the engine of job creation; and (iv) a stronger compact among tiers of government regarding respective functions, quality assurance, and financing, particularly given that most public services are managed sub-nationally. 29. India is positioned to significantly strengthen its important and impactful global development role. The SCD highlights that India’s size, large poor population, and expected growth will make it an ever more important contributor to the global economy and achievement of global goals, including the SDGs and the WBG’s twin goals. On critical global goods, the nature of India’s growth and development trajectory will have a major impact on the rest of the world. At the same time, India itself aspires to strengthen its global role, including sharing its extensive and highly relevant expertise, experience, and practical know-how with other developing countries. Figure 3. SCD Findings: Challenges and Pathways Towards Building a Prosperous India 12 III. THE WORLD BANK GROUP COUNTRY PARTNERSHIP FRAMEWORK: A COMBINED FOCUS ON ‘WHAT’ AND ‘HOW’ THE WBG WILL DELIVER 30. This CPF is defined by a prioritization of ‘what’ substantive areas the WBG will focus on and an articulation of ‘how’ the Group will engage with India. The combination of the ‘Whats’ and ‘Hows’ is the underlying operational model of the CPF. This model represents the integration of multiple needs, priorities, and strategic imperatives for India as it seeks to pivot its development trajectory. The selection of substantive areas and approaches to how the WBG engages is based on: (i) India’s overall development priorities as outlined in its FY2017-19 action agenda, missions, and national programs; (ii) the SCD’s assessment of India’s development challenges, including constraints to achieving the WBG’s twin goals; and (iii) the WBG’s comparative advantage and value proposition in combining financial products, knowledge and convening services, and implementation support. The CPF also explicitly incorporates lessons learned from the FY13–17 CPS—much of which analyzed ‘how’ the WBG has engaged with India— and builds on the large legacy portfolio that will play an integral role in achieving results. Box 2: Lessons Learned in Implementing the Country Partnership Strategy (CPS) for India FY13-17 The Completion and Learning Review (CLR) for the FY13–17 India CPS stresses that delivery of development results depends more on the length and depth of WBG engagement than the amount of financing per se. While large operations may provide more opportunity for working on policy and implementation, there is little apparent correlation between size of financing and its impact on particular sectors. Instead, development impact tends to be greater under a long-term engagement of multiple operations where the Group is able to build on existing partnerships. For instance, successful rural livelihoods operations in Bihar and agricultural competitiveness operations in Assam were relatively small but delivered good results over time, notwithstanding capacity constraints in these states. The CLR also emphasizes the need to ensure that the sum is greater than the parts in state-level engagements. The World Bank’s portfolio increased by 20 percent in terms of commitments over the past five years, owing almost entirely to growth in state-level operations, especially in LIS and Special Category States (SCS). However, this growth was driven more by proliferation of sector-specific projects rather than a holistic approach to meet states’ development priorities. While the WBG previously fostered synergies in state engagements through cross-sectoral analytical work or policy operations, Non-Lending Technical Assistance (NLTA) in states during FY13–17 tended to focus on preparation of discrete operations. A stronger WBG team engaged in the states, including a more strategic role for state coordinators, greater direct Country Management Unit involvement, and regular attention to portfolio management at the state level will be important for state engagements going forward. Other lessons learned and reflected in the new CPF’s content and design in clude: (i) the WBG’s support for national operations involving state or local government implementation should encourage local flexibility, innovations and provide for interstate exchange of experience and learning; (ii) despite the growth in IFC’s portfolio including its facilitation of over 20 PPPs and several joint IBRD-IFC activities, there remains significant potential to further leverage private financing and solutions; (iii) results-based financing is promising, but monitoring and evaluation (M&E) systems need to be in place early on to ensure prompt disbursements; and (iv) given slow implementation of the IBRD/IDA portfolio (with nearly US$17 billion undisbursed), increased proactivity to address key bottlenecks, in particular land acquisition, procurement planning, continuity in staffing, and other implementation arrangements, is needed. 13 A. THE ‘WHATS’: FOCUS AREAS AND OBJECTIVES 31. The CPF posits three focus areas for WBG’s engagement. These are (i) promoting resource- efficient growth; (ii) enhancing competitiveness and enabling job creation; and (iii) investing in human capital. These areas align with GoI’s priorities and address two of the SCD pathways to ending poverty and boosting shared prosperity (Figure 3). The third pathway identified in the SCD—strengthening the public sector is reflected in the ‘Hows’ of WBG engagement with India’s federal system and government institutions described in section B. While some of the CPF objectives will be addressed primarily through sectoral interventions, others represent complex challenges requiring reforms and engagement in multiple sectors to achieve success. Taking on multisector challenges reflects the WBG’s comparative advantage in mobilizing wide-ranging instruments across IBRD, IFC, and MIGA as well as diverse sectoral expertise in the Global Practices (GPs). For the three CPF focus areas and associated objectives, a detailed description of intervention logic involving a synopsis of GoI objectives, key challenges to be addressed, WBG activities (World Bank and IFC lending, investment, and knowledge services) and results indicators are provided in Annex 1 (Results Framework). Figure 4. CPF Focus Areas 14 Focus Area 1: Promoting Resource-Efficient Growth 32. The WBG will focus on supporting sectors and areas that are critical for facilitating growth and poverty reduction while promoting greater resource efficiency. These CPF objectives reflect maturing engagement in the rural, urban, and power sectors as well as disaster risk management (DRM). In addition, the WBG will mobilize to address the relatively new but critical issue of air pollution in India’s cities. Objectives within this Focus Area are to: 1.1. Promote more resource-efficient, inclusive, and diversified growth in the rural sector. The WBG will provide support to improve the welfare of the rural population, consistent with the GoI’s priority to double farmers’ incomes by 2022. This will include increasing and diversifying income-generating opportunities while improving efficiency in the use of water and land resources in agriculture. The WBG will deepen ongoing support for climate resilience and improved natural resource management through investments in infrastructure, facilitating changes in agricultural approaches, crop diversification, and minimizing agriculture risks through insurance. A distinctive part of the WBG’s rural sector work under the new CPF will be to scale up support for resilience through the Agriculture Risk Resilience and Insurance Access Project. The WBG will further support the private sector with regard to food safety, food processing, food/commodity supply and distribution infrastructure. The WBG will continue to support the national government’s efforts to promote inclusion in enterprise development in agriculture, aquaculture, forestry and other non-farm sectors, including through the promotion of a commercial and export-oriented modern farming sector. Support for rural livelihoods will evolve to increase income diversification, seek much closer linkages to the formal financial sector and integrate women’s self-help groups (SHGs) and MFIs into rural value chains, and promote rural enterprise development. State- level operations combined with knowledge exchanges across states as well as with other countries will help to transfer and scale up good practices. 1.2. Improve livability and sustainability of cities. The WBG will help cities become more green, livable, productive, and resilient by investing in affordable and sustainable public transport services, including mass rapid transit systems in large cities; improving water systems; supporting an enabling environment for green buildings; and mobilizing the private sector to address issues in municipal waste management, wastewater recycling and reuse, municipal healthcare, affordable/green housing, energy efficiency. The WBG will also invest in more inclusive and equitable cities through new engagements on affordable/green housing to support the GoI’s national ‘Housing for All’ program, and enhancing access to basic urban services. IFC will also invest directly in cities without sovereign guarantees and support institution building of state and municipal governments through PPPs and other means to promote private investment in public service delivery. Finally, the WBG will engage in urbanization policy issues at the national and state levels through its Urban Knowledge Platform and knowledge exchanges through Lighthouse India (see Section III.B below on the ‘Hows’), with focus on improving urban policies, institutions, governance and finance. The WBG will also have selective engagement with national urban development programs which flexibly promote local innovation. 1.3. Improve management systems for controlling air pollution in select cities. Air pollution has emerged as an urgent development concern with widespread health impacts and the government’s National Clean Air Program (NCAP) provides an important entry point for the WBG’s engagement. Activities in 15 this new area will initially be led by a multi-sector programmatic ASA which may lead to policy and/or results-based lending operations over the course of the CPF. Priorities will include (i) supporting cross- jurisdictional and cross-sector institutional coordination to develop and implement airshed-based Air Quality Management Plans (ii) promoting policies and programs to increase adoption of cleaner technologies in cities, including electric vehicles, and (iii) strengthening the capacity of policy makers, urban local bodies, implementing agencies, and regulators. The World Bank will also actively support knowledge exchanges across countries and cities through the global Pollution Management and Environment Health Multi-Donor Trust Fund being managed by the World Bank. IFC will support these priorities through: (i) lending to sustainable urban mobility companies that provide zero air pollution transport and advisory services to urban municipalities to develop operating models for adopting electric vehicles; (ii) promoting green buildings and EDGE certification programs; and (iii) strengthening adoption of efficient street lighting solutions in cities. 1.4. Increase access to sustainable energy. Building on its long-standing engagement in the Indian power sector, the WBG will redouble efforts to carry through on state transmission and distribution (T&D) utility reforms and institutional strengthening to ensure increased access to reliable power in alignment with the GoI’s 24x7 Power for All Program. Support for scaling up of renewable energy will be expanded by helping to mobilize private financing through a mix of WBG instruments, as well as providing technical assistance (TA) for market design for renewable energy grid integration and next generation renewable energy technologies. IFC will build on its significant role in promoting renewable energy through investments and PPP transaction advisory work. IFC will explore investments in innovative and de-risked investment vehicles to attract new classes of yield-seeking investors such as pension funds and insurance companies to invest in the sector. The WBG will also support the development of stronger incentive structures, markets and solutions for energy efficiency, as evidenced by the first IBRD guarantee in India to support Energy Efficiency Services Limited which will transform the country’s energy efficiency market. Finally, the WBG will support India’s leadership role in promoting the International Solar Alliance and will facilitate knowledge exchanges to share India’s energy efficiency experience with other countries. 1.5. Improve disaster risk management. The WBG will support India in its global leadership role in disaster risk reduction. Building on its strong portfolio of projects and TA to create resilient infrastructure, further support will be provided to build state and local level DRM institutions, and build capacity for disaster risk reduction and emergency preparedness. The WBG will also bring cutting-edge knowledge and global experience in DRM from other countries such as Japan, Mexico, and Turkey. Focus Area 2: Enhancing Competitiveness and Enabling Job Creation 33. The WBG will focus on supporting enablers for enhancing India’s competitiveness and ability to create more and better jobs. These objectives and underpinning activities will build on ongoing activities across several sectors but reflect a shift in emphasis toward addressing systemic constraints to job creation. The WBG will seek to: 2.1. Improve the business environment and select firm capabilities. The WBG will support national and state-level policy, regulatory, and administrative reforms that reduce unnecessary transaction costs, encourage formality, and create a more level playing field to unleash the private sector's potential to 16 address key development challenges. The WBG will partner with central and state agencies responsible for the development of firm capabilities to improve the institutional setup promoting start-ups, technology, innovation, quality standards, and managerial skills development. These efforts will focus on sectors where India has potential to be globally competitive (e.g. tourism, biopharmaceuticals, and medical devices). Technical assistance, including through potential Reimbursable Advisory Services (RASes), will focus on benchmarking between states, setting up good regulatory practices, capacity building of relevant government institutions, and addressing market barriers to firms’ development. The WBG will also promote knowledge exchange within India and internationally on the use of economic zones and industrial infrastructure. At the firm level, these efforts will be complemented by IFC's ability to intervene directly through its investment and advisory activities. 2.2. Increase resilience of the financial sector and financial inclusion. The WBG will maximize finance for development to support the GoI’s efforts in addressing the systemic issue of stressed bank balance sheets which constrain bank financing through regulatory reform and advisory work, while IFC will addition provide platforms for distressed assets resolutions. To expand financial inclusion, the WBG will support the development of credit products and provide financing to facilitate long-term funding to underserved rural, micro, small, and medium enterprises (MSMEs), and the infrastructure, and affordable housing sectors, through intermediaries such as MFIs, NBFCs and banks. The Group will also continue to partner in efforts to bring the underbanked and unbanked population into the financial system. In this regard, IFC will continue its efforts to support the MFI space and ramp up its engagement in Fintech related activities, specialized financial institutions, and strengthen rural credit bureaus. Continued support will be provided for product and market innovations to increase financial inclusion with specific focus on rural areas, micro-enterprises, women, and farmers. Mainstreaming Fintech, e-platforms, and other innovations in digitization of payments will be supported, as well as financial structures and incentives to support start-ups. Leveraging on the success of the development of the offshore Masala Bond market, IFC will continue to innovate financial products to further deepen the domestic capital market. 2.3. Improve connectivity and logistics. The WBG will finance operations and provide knowledge services to address connectivity constraints in particular supporting: (i) national and state transport systems such as highways, roads, airports, port terminals including making them climate and disaster resilient; (ii) multi-modal transport, including shifts from highways to railways and waterways; and (iii) logistics supply chain infrastructure, including warehouses. The WBG will apply the maximizing finance for development (MFD) approach to prioritize leveraging of private sector finance through innovative PPP structures, risk mitigation, and credit enhancement instruments. IFC will continue to create markets and focus on investments which open-up additional avenues of accessing finance over traditional bank finance (e.g. through capital markets). IFC will continue to explore ways to support the GoI's efforts to address the digital divide by supporting efficient service delivery platforms. The WBG will also provide TA, including through use of RASes, for strengthening the policy environment, regulatory framework, coordination of infrastructure investments, and monitoring of logistics performance. 2.4. Increase access to quality, market-relevant skills. The WBG will help to address mismatches between programs, market demand, and worker preferences while supporting the GoI’s push to increase the volume and quality of skills training. Working with India’s national Skill India Mission as well as 17 industrial training institutes, the WBG will focus on expanding private sector involvement in curriculum development and private financing for skills training, strengthening institutional mechanisms and capacities for skills development (SD), and incentivizing states to continuously upgrade labor market competencies. IFC will support leading private sector SD companies to strengthen the quality of SD programs, capabilities in vocational training and skills, and the use of digital platforms to enhance reach. The WBG will support India as a knowledge hub for SD, particularly for African nations. 2.5. Enabling more quality jobs for women. The WBG will develop engagements to enable female labor force participation and, more generally, economic empowerment. While broad-based support for women’s economic empowerment is embedded across several CPF objectives, such as in rural development, financial inclusion, and skills development, activities under this objective will promote business practices that are conducive for women entering, remaining, and progressing in the workforce. IFC partnerships with private companies will promote gender-supportive policies, targets, and practices. The WBG will also support increased investments in women-operated and women owned SMEs and rural enterprises with improved access to financial services and capacity building for women. Analytical work will aim to unpack the challenges underpinning low levels of women employment. Focus Area 3: Investing in Human Capital 34. The WBG will maintain its longstanding focus on improving India’s human capital as a critic al long-term investment required to eliminate extreme poverty and foster India’s middle class. Insofar as India has made substantial progress on access to services critical to human development such as education and health, this CPF will focus more on issues of public service quality and efficiency compared to the preceding CPS. At the same time, the WBG will continue to support measures to provide for affordability of key education, health, and water services which are critical for human development. The WBG’s engagements in human development sectors will focus on promoting innovative practices in states, including ways to mobilize more resources into these sectors, and transmission of learning from states’ innovations within national programs (such as in nutrition services or primary and secondary education) and/or through cross-state learning (e.g. through several health operations). The WBG will seek to: 3.1. Enhance investment in the early years of children’s development. Bringing together related sectors—nutrition, early childhood education (ECE), maternal health, and basic sanitation—in a more comprehensive and complementary approach will put children on a solid path toward maximizing their potential. The WBG will focus on: improving coverage and quality of Integrated Child Development Services (ICDS) nutrition services to pregnant/lactating women and children under 3 years of age; improving the design of ECE assessment tools and curriculum; and fostering better integration and coordination of services as well as innovation at the state level. The WBG will focus on select states within the ICDS program to promote innovation as well as support knowledge exchange on effective practices in India and internationally. 3.2. Improve the quality of education in schools and colleges. Issues of education access and gender balance have largely been resolved in India, but the pervasive low quality of education has led to poor 18 learning outcomes. The WBG will build on decades of its engagement in primary and secondary education and grow an emerging focus on tertiary levels. Aligning education systems to prepare youth for future jobs will be an important consideration. WBG activities will focus on strengthening teacher performance through professional development and accountability systems, building institutions and systems to identify ways to improve learning outcomes, and improving governance and quality assurance within schools and colleges. Distinct from an earlier approach of broad support for centrally sponsored schemes for improving access to education, the approach going forward will be to design support for national programs for primary and secondary education in a manner that incentivizes state-level innovation and performance in achieving better learning outcomes. Delivery models that leverage the private sector to deliver quality education will also be promoted. IFC in particular will continue to support private sector provision of quality education at all levels including the use of digital platforms, with a particular focus on rural and small towns. 3.3. Increase access to improved rural water supply and sanitation. Through a portfolio spanning seven states across India, the WBG will strengthen the capacity of state and local institutions for efficient and sustainable water and sanitation service delivery, scaling up performance-based service delivery models, engaging the private sector to enhance efficiency, increasing customer voice for accountability, and providing quality assurance through robust M&E systems. The WBG will continue its support for the national Swachh Bharat Mission to eradicate open defecation through its Program- for-Results (PforR) operation and TA. While the World Bank will carry through on its existing portfolio, new lending operations will be considered only insofar as they provide for innovative approaches, improve service delivery institutions, or markedly improve sustainability of service delivery. 3.4. Improve the quality of health service delivery and financing as well as access to quality healthcare. The WBG will support increased access to quality healthcare, through improvements in public sector provision and private sector activities. Priorities include strengthening standards of service, as well as planning, execution, and monitoring systems to increase effectiveness and efficiency of public and private investments in the sector. The WBG will continue to provide finance for the national HIV/AIDs and tuberculosis (TB) control programs and expand its ASA to support the GoI’s initiatives in universal health coverage and health insurance. The World Bank’s health sector work will build on ongoing and prior operations in mostly LIS/SCS while including new operations to focus on emerging health concerns associated with middle income status. To address the significant financing gap in delivery of healthcare at all levels, IFC will continue to mobilize private sector capital to expand affordable, quality healthcare and create a mass market for lower income populations. IFC’s activities will include direct investments in private sector ventures and health care service providers, PPPs, as well as advisory services for the central and state governments. 3.5. Improve the coverage and coordination of social protection systems in select states. The WBG will expand its lending operations and ASA to strengthen delivery systems, including direct benefit transfer (DBT) systems, and improve coordination of various SP schemes at the state level. Support will also be provided to the national Rural Development Ministry and select states in the design, piloting, and scaling up of social registries to improve beneficiary identification and targeting. ASAs will help to strengthen state capability to coordinate benefit delivery by adopting digital payment systems, and facilitate transfer of good practices across states through the Lighthouse India initiative. 19 B. THE ‘HOWS’: FOUR APPROACHES FOR SMARTER ENGAGEMENT 35. How the WBG partners with India is critical for delivering results at scale. India’s huge development needs far outstrip what the WBG can provide, putting a premium on the Group’s ability to leverage internal and external resources. Lessons learned from the WBG’s engagement (see Box 2) underscore several opportunities for amplifying the Group’s effectiveness: increasing leveraging of private sector finance and expertise, supporting innovation in India’s federal system, and fashioning more coherent, systemic interventions, especially at the state level. In addition, the WBG’s engagement in India should reflect the country’s increasing prominence in achieving global development goals, as was noted in the SCD. The WBG is well positioned to partner with India to facilitate a mutually beneficial flow of development experience and knowledge between India and the world. 36. The WBG will focus on four catalytic ‘Hows’ of engagement to serve as impact multipliers. The four approaches to how the Group will deliver are: • Leveraging the private sector - recognizing the critical role of private capital and solutions to address India’s development challenges, capitalizing on complementarity of IBRD, IFC, and MIGA instruments, and employing the MFD approach in alignment with the WBG’s overall financing strategy 4; • Engaging a federal India - identifying entry points and change levers at various levels of India’s federal system to target catalytic contributions, including strategic partnerships with select states; • Strengthening public sector institutions – improving institutions in sectors and sub-sectors through increasing capability and better aligning incentives as well as strengthening core government systems; and Lighthouse India: Knowledge in • Supporting a Lighthouse India - analyzing, curating, and Implementation disseminating the country’s vast experience and knowledge internally between states as well as externally with the rest of the world. 37. These ‘Hows’ are integral to both overall implementation of the CPF and achieving results on specific objectives. First, all new operations, as well as ongoing operations where possible, will be expected to articulate specific applications of the ‘How’ approaches. The ‘Hows’ are not ‘filters’ for approval of lending or investments but are rather tactical tools to make operations more effective in achieving sustained impact. At the same time, the WBG will not proceed with activities that do not adequately consider how to employ the ‘Hows’. Second, the four approaches are embedded in the 4See The Forward Look: A Vision for the World Bank Group in 2030 (2016), and the Maximizing Finance for Development: Leveraging the Private Sector for Growth and Sustainable Development (2017) 20 strategies to achieve CPF objectives outlined in the Results Framework in Annex 1. Third, the cumulative impact of the ‘Hows’ will constitute an important signal of progress in the WBG’s engagement in India. The ‘Hows’ will be monitored to provide for adaptive learning to improve WBG activities going forward. How #1: Leveraging the Private Sector 38. IBRD, IFC, and MIGA will deliver on their distinctive roles and strengths in leveraging private sector finance and expertise, working collaboratively and coherently as ‘One World Bank Group’. IBRD will continue to focus on policy and institutional frameworks as well as building on its first ever use of partial risk guarantees in India to crowd in private finance for an energy efficient operation in FY18. IFC will use its investment and advisory services to focus on creating markets, building the capacity of private sector firms to create jobs and to deliver products and services, and facilitate a more efficient interface between the public and private sectors. MIGA is looking to engage in India, focusing on building a portfolio of credit enhancement guarantees covering infrastructure, institutions, and sub-sovereigns, as appropriate in support of infrastructure projects, while also making its services available to Indian companies investing in other countries, specifically in Africa and Asia. 39. The WBG will systematically apply the MFD approach to leverage private sector solutions. The MFD approach seeks to help countries maximize development resources by drawing on private financing and sustainable private sector solutions to provide value for money and meet the highest environmental, social, and fiscal responsibility standards, while reserving scarce public financing for areas where private sector engagement is not optimal or available. The MFD approach builds on substantial experience across the WBG in helping governments crowd in the private sector to help meet development goals. The private sector plays a substantially bigger role as both a financier and a source of knowledge, expertise, and innovation that can yield transformative solutions. Under the approach, the public sector is supported to develop legal and regulatory frameworks as well policy reforms, engage new partners to achieve development goals, and serves as a source of financing when private solutions are not available. The “cascade” approach to MFD sequences questions to present a framework for decision making, and asks first whether there is a sustainable private sector solution that limits public debt and contingent liabilities. If not, policy or regulatory gaps are considered, and the WBG seeks to provide support by: (i) designing and implementing upstream reforms aimed at addressing perceived risks or market failures that prevent a sustainable private sector response or engagement (World Bank development policy financing and sector reform operations are examples of possible instruments, as well as IFC and World Bank advisory services that address sector constraints and market creation); (ii) attracting the private sector through WBG risk-sharing instruments; or (iii) co-financing with the use of public resources, including through public-private partnership (PPP) mechanisms. 40. The WBG will use its convening power, structuring expertise, investment, and advisory services for commercial transactions to facilitate leveraging of private finance and expertise . More generally, the WBG will seek to develop avenues for private sector participation in public service delivery sectors, including in utilities, to tap financing, knowhow and provide for greater market discipline to spur performance. At the systemic level, the WBG will build on its current engagements to further develop market mechanisms, such as the corporate bond market, to increase financing for development. The WBG will, upon request, provide advisory services to reform public sector financial institutions to provide for better use of public resources. The WBG will explore partnership with domestic financial institutions, such 21 as the National Infrastructure Investment Fund and associated credit enhancement facility, to leverage private capital for India’s development needs. IFC will also work with central, state and local governments, as well as credible private sector partners, to create markets, generate jobs, strengthen competitiveness, and maximize impact in providing private sector solutions to address key development challenges. Finally, the WBG will build on findings of the 2017 Financial Sector Assessment Program (FSAP), including through carrying out an Infrastructure Sector Assessment (InfraSAP) to identify key gaps and potential reforms to facilitate investment in critical sectors. Box 3. Maximizing Finance for Development: Priority Sectors To help maximize finance for development (MFD) in India, the WBG has identified three areas for priority application of the cascade approach: (i) addressing NPLs/Public sector bank constraints; (ii) providing affordable/green housing; and (iii) meeting energy needs through renewable energy and energy efficiency. * Distressed Asset Resolution. The WBG will support the GoI’s efforts to address the twin balance sheet challenge caused by NPLs. With NPLs amounting to some seven percent of GDP, this is a systemic issue for India which severely constrains credit, investment, growth, and job creation, and progress towards fiscal consolidation. The GoI has implemented a series of important reforms to revamp the regulatory environment for resolution of distressed assets (DA), including introducing a new Insolvency and Bankruptcy Code, amending the Banking Law to give wide-ranging legislative powers to the RBI to issue directions to lenders to initiate insolvency proceedings to recover NPLs and more stringent recognition and provisioning of NPLs. The World Bank and IFC are engaged in a programmatic approach to develop a market for distressed asset (DA) resolution in support of GoI’s efforts. The World Bank is providing technical assistance to strengthen India’s credit infrastructure, including its collateral registry and insolvency regime, while IFC is supporting a range of DA solutions through its Distressed Asset Recovery Program (DARP). IFC has invested in a non-banking financial company that lends to stressed small and medium enterprises, and in an asset reconstruction company that targets DA resolution in the retail and micro, small and medium enterprises sector. IFC is now in the process of creating the first dedicated platform to target mid-to-large distressed corporates at scale, including many of the forty companies already identified by the RBI as priority resolution targets. IFC will invest up to US$100 million while the two sponsors will invest $100 million each into India Resurgence Fund, aiming to reach a total size of US$1 billion by mobilizing additional resources from the private sector. The Fund will focus on restructuring large businesses in financial distress by bringing in operational capabilities, aggregating debt, injecting fresh capital, identifying non-core assets, as well as potentially mobilizing strategic partners. Going forward, the WBG will continue to intensify both the upstream work (such as advisory engagements with the Insolvency and Bankruptcy Board of India (IBBI), as well as the investment activities that IFC and WB are currently undertaking or plan to take. The WB and IFC are also ready to assist the government in rationalizing key public sector assets. Together, this will help provide more credit to SMEs and corporates that will strengthen private sector investment and job creation. Providing affordable/green housing: India faces multiple challenges on the affordable housing front—availability, energy usage and lack of mortgage finance. India faces a serious housing shortage, particularly in the affordable housing segment. An estimated 275 million people (22 percent of the population) lack access to adequate housing. Addressing this shortage requires the construction of over 60 million new housing units, of which 19 million is in urban areas and 11 million is in the affordable price range. Moreover, mortgage penetration in India is only 9 percent of GDP, reflecting enormous unmet demand for housing finance, particularly in the lower income segment. In response to this challenge, GoI has announced an ambitious goal of achieving “Housing for all” by 2022 and has taken a series of steps towards achieving this goal. At the same time, the importance of a climate-smart housing sector is widely recognized, particularly in the context of India’s commitments to reduce greenhouse gas emissions through household energy consumption as well as through land use, construction activities and by way of materials sourcing, usage and logistics-driven impacts by 33-35 percent by 2030. Lastly, HFCs in India are reluctant to lend to the lower-income customers given the challenges in making effective and cost-efficient credit assessments and the perceived higher risk profile of this segment which features a preponderance of self-employed borrowers or those employed in informal sector. 22 To support the GoI’s objectives and achieve meaningful impact in affordable housing, the WBG has identified key institutional gaps that include: (i) greater attention to supply-side constraints by centrally sponsored schemes; (ii) strengthening local government capacity and autonomy to lead large-scale affordable housing development; and (iii) policy and institutional coordination to promote integration, innovation and knowledge transfer. Recognizing that the creators of large future urban stock of affordable housing units will be housing boards, municipalities and urban local bodies (which have access to unencumbered urban land as well as the ability to expedite approval processes), the WB will increasingly work with these state level bodies and assist them, financially as well as through knowledge transfer and capacity building, to build rapidly and offer homes (using appropriate technology) to the target class either on their own or through PPPs. IFC, in turn, is supporting HFCs for on-lending to retail buyers of affordable housing, as well as developers of affordable and green housing via several projects which will help demonstrate the viability of such housing as a commercial proposition for private sector developers and financiers. IFC’s engagement in the sector is expected to create strong cascading impact in the nascent affordable and green housing markets. IFC will also support the eco-system for affordable housing and green buildings. It has formed the Sustainable Housing Consortium which has representation from leading developers, financiers and the GoI. IFC’s EDGE certification program for green buildings has been well accepted by stakeholders as a robust yet simple tool for design and construction of such buildings. IFC also leverages EDGE to support the HFCs’ efforts to promote and finance green developments by conducting workshops for developers to educate them on green technology. This has benefited the developer community and increased the green building financing pipeline for the HFCs. Meeting Energy Needs through Renewable Energy and Energy Efficiency. As part of its goals to provide 24X7 power while mitigating climate change impacts, the GoI has undertaken to install 175 GW of renewable energy (RE) capacity by 2022, including 100 GW from solar power. Importantly, while government support is necessary to give impetus to RE projects in the early stages, renewable electricity needs to reach grid parity to allow for scaling up to reach the 175 GW capacity target. Mobilization of private financing at scale is critical to achieving these objectives. At the systems level, the World Bank will provide analytical and advisory work to improve forecasting, balancing, and market design for renewable energy integration, grid codes and regulatory development, and increased transmission infrastructure. Technical support will also be provided for next generation renewable technologies to address grid integration challenges through hybrid (wind-solar-storage), storage (wind-storage, solar-storage, or hybrid-storage), and floating solar photovoltaic projects and investments in other balancing technologies, including hydropower and gas. At the transactions level, WB and IFC will leverage their financing to underwrite commercial investment in renewable energy and energy efficiency. Examples include the IBRD Grid-Connected Rooftop Solar Program, which has kick-started the solar rooftop market with loans worth US$350 million sanctioned to seven companies for installations of 575 MW solar rooftops and a partial risk sharing facility for Energy Efficiency Services Limited. This followed IFC’s earlier successful demonstration of structuring bankable rooftop PPPs in Gujarat and Odisha. IFC will also explore investments in innovative financing vehicles to help attract yield seeking investors such as pension funds and insurance companies to invest in the sector. The Rewa Ultra Mega Solar Power Project is an example of the power of leveraging the WBG and maximizing finance for development for impact and innovation. The Project is developing one of the world’s largest solar power p lants (producing 750 MW) in Madhya Pradesh, one of India’s LIS. The World Bank provided a loan for evacuation infrastructure, while the IFC’s PPP team provided innovative transaction advisory support to introduce best practices and structure the project to attract private capital. IFC also provided $440 million of own and mobilized local currency investment to the developers building the solar park. The Project included many first-time features, including guaranteed energy offtake, termination compensation, payment security mechanisms, unique bidding guidelines and other features in line with international best practices. It also helped create a market of open-access institutional off- takers alongside utilities, operationalizing inter-state open-access for solar power in India. Finally, the project is the first in India where the renewable energy tariff was lower than that of other conventional sources: the record low tariff of about USD cents 4.4/unit is a tipping point for grid parity of solar power in India. The WBG is now seeking to replicate this success on a state-by-state basis by working with Ministry of New and Renewable Energy to provide both financing (through the shared infrastructure project) and advisory support for further solar park development. 23 41. The WBG will seek to leverage the private sector in specific transactions. The WBG will seek to improve bankability of investment projects that are attractive to the market. This focus will include addressing bottlenecks such as timely handling of permits, clearances, and approvals. The WBG will also provide advisory services to select states and the national government to structure PPPs by introducing best practices for attracting private investment on competitive terms and advising on approaches to mitigate risks and bring investment-ready projects to the market. Finally, the IFC will also continue to support private entities engaging in specific PPP transactions. Leveraging private sector finance and solutions will be a key approach to achieving several CPF objectives, with particular focus on addressing NPLs, providing affordable housing at scale, and scaling up generation of renewable energy (see Box 3). How #2: Engaging a Federal India 42. The WBG will engage at national, state, and local levels, recognizing the respective roles these tiers of government play in India’s federal system. At the national level, the Group will partner with key national transformative programs such as improving rural connectivity, skill developments, affordable housing, SME financing etc.; the WBG’s value addition will focus on supporting development solutions and effectiveness in implementation – largely through flexibility to states to innovate and drive performance -- to help national programs bring better practices to scale. The Group will also partner with GoI institutions, especially NITI Aayog, to generate comparative information about states’ performance to facilitate state-level reforms, building on the successful development of business climate and health performance indices. The CPF will effect a move towards emphasizing states as the primary unit driving development, consistent with India’s competitive federalism: rather than working through centrally sponsored schemes, the WBG will support “states at the center” of development. At the state level, the WBG will build greater synergies across operations, including harmonizing approaches toward implementation arrangements. IFC will also intensify its engagement with state and municipal governments to provide institution-building advisory services and to mobilize private sector financing. The WBG will capitalize on working in the same sector across several states to promote innovation and learning for the benefit of other states and to inform national programs and policies, including through the Lighthouse Initiative described below. For instance, the WBG will engage in state level projects to develop health systems in at least six states from LIS to more prosperous states which face different health challenges; learning will be shared across these operations and with the center. At the local level, the WBG will partner with local governments and other service providers to improve planning, coordination and implementation capacity to address local challenges, such as providing for water and sanitation. 43. Under its “states at the center” focus, the WBG will maintain its presence in the LIS/SCS while supporting innovation across a range of states. In keeping with the shift carried out under the preceding strategy, the World Bank will continue to have at least 30 percent of the value of total commitments5 in its portfolio to these states during the CPF period. IFC will continue its focus on the LIS/SCS, including through the use of PPPs, which have proven to be an effective mode of engagement in these states. At the same time, the World Bank will also continue to support the GoI’s ‘Finance Plus’ approach to targeting investments that contribute to institutional development and innovation, including in higher-income and higher-performing states. Through engaging in different state milieus, the diverse and at times 5This calculation includes state-specific operations, as well as estimated state shares of national and/or multi-state operations dedicated to LIS/SCS. 24 fragmented wisdom of India’s experience can be harnessed and harvested for the benefit of all states, consistent with the country’s vision of cooperative and competitive federalism. 44. A key new feature for the WBG’s approach in India will be the development of strategic state partnerships to serve as laboratories for effective implementation practices around CPF objectives and themes. These deeper partnerships are predicated on the importance of states in tackling their unique challenges as well as opportunity for testing approaches that can be transmitted to other states in India’s federal system. A state partnership entails a joint commitment by the WBG and the states toward addressing critical, often more complex development challenges, developing innovative solutions, and ensuring greater coordination and synergies across its activities. Most important, strategic state partnerships are to provide a platform for improving states’ implementation capability. The approach to state partnerships will also draw on WBG experience in other countries with large important subnational units, notably Brazil, Indonesia, and China. 45. Strategic state partnerships will have similar features, though WBG activities will vary in accordance with the state’s priorities as well as its economic and poverty profile. A partnership will entail analysis of states’ growth and poverty drivers as well as fiscal position, agreeing on a set of priority operations and ASA to address the state’s circumstances. The partnership will be underpinned by a core partnership operation (likely a PforR or a Development Policy Financing [DPF] series) and/or a comprehensive TA activity (potentially including RASes), depending on the development challenges of a given state. The core partnership operation will provide for cohesive interventions across multiple sectors and work holistically on core public sector management and service delivery to citizens. For example, a partnership in an LIS will likely focus on supporting core capabilities to deliver basic services (e.g. providing access to quality education, health, water and sanitation, and connectivity through roads) through technical assistance, a core operation focused on service delivery, and some sector specific lending operations. With respect to middle income and higher income states where delivery of basic services may be stronger, the focus would be on next-level challenges, such as innovative approaches to financing infrastructure, delivered through a mix of lending and knowledge services, but with relatively greater emphasis on the latter. RASes can be explored in relatively higher income states. Expected levels of financing for the state partnership will be established based on the state’s fiscal assessment and an agreed set of activities. Teams of senior WBG staff will be designated to manage strategic state partnerships. Activities under the partnership will be supported by six-monthly portfolio reviews led jointly led by senior state officials, WBG country management, and the Department of Economic Affairs (DEA), Ministry of Finance. 46. Strategic state partnerships will reflect India’s diversity and develop organically. The WBG will aim to establish three to five strategic partnerships with states at different stages of development, including at least two LIS/SCS. Selection of these states for partnerships will be premised on general criteria of high-level political commitment to and ownership of reforms aimed at their inclusive, strong, and sustainable growth by increasing private sector and foreign investment, creating jobs, and reducing poverty; and the presence of a critical mass of ongoing and planned WBG operations and ASA. Three more specific criteria for selection will also be applied: (i) a well-defined substantive implementation capability gap in sector(s) or among core government functions which the state wishes to tackle with WBG support; (ii) scope for activities which innovate and have significant inter-state learning and scale-up potential; and 25 (iii) demonstrated fiscal responsibility6 reflecting quality of governance and ability to borrow. The WBG and states will learn from the experience of an initial few state partnerships to adjust the model and expand to other states over the CPF period. How #3: Strengthening Public Sector Institutions 47. The WBG will systematically focus on improving the implementation capability of public sector institutions at the sector level. This focus will be on capability of specific institutions in sectors where the WBG is engaged: line departments and agencies, such as departments of health, or state-owned enterprises such as power, water and transport utilities and public-sector banks. Capability means having effective systems to assess drivers of good performance and problems in service delivery, plan and implement programs to improve performance, as well as seek citizen feedback and monitor to make adjustments and sustain improved institutional performance. Improved performance includes increased transparency and ensuring proper use of public resources. Strengthening public sector institutions necessarily involves changing incentives, which in turn requires understanding political economy challenges. The WBG will invest in its understanding of drivers of the status quo and incentives to welcoming or blocking potential changes in order to effectively engage public sector institutions. 48. Specific features of institutional strengthening will depend on the nature of constraints to achieving outcomes in corresponding institutions or sector. Activities are likely to focus on deployment of human and financial resources; decision-making and accountability mechanisms, including channels for citizen engagement; and effective engagement of the private sector. More generally, the WBG will support a shift towards injecting more market competition to incentivize performance by creating level playing field among public and private entities in sectors. It will also involve, where appropriate, restructuring of public institutions to facilitate access to private financing whereby market discipline would in turn spur better management and performance. For instance, the SD area is characterized by public training institutions with incentives to secure budget resources to deliver a large volume of training with limited quality assurance. Effectiveness can be improved by institutional changes to create greater opportunity for private sector involvement with curricula and delivery, flexibility in financing arrangements, and more robust M&E arrangements to learn what works and replicate. 49. The focus on institutions in sectors will be complemented by a suite of WBG activities to modernize core public sector capabilities, particularly at state and local levels. Support for core capability will include lending and TA to (i) strengthen public financial management (PFM) and procurement systems, primarily at the state level; (ii) improve debt management practices at national and state levels; (iii) develop accountability mechanisms, including support for digital platforms to remove discretion for routine interactions between government, businesses and citizens, as well as enabling citizen engagement channels; and (iv) strengthen planning, budgeting, and M&E at state levels. All these approaches will be supported through use of e-governance tools to modernize operations and improve performance. The World Bank will also seek to develop a deeper, long-term engagement with the National Statistical Organization to support capacity improvements and partner on analytical tools to marshal data for better policy-making, including utilizing the consumption expenditure survey to be released in 2019. Finally, many of these core competencies of public sector institutions—financial management, accountability mechanisms, data collection—will be a focus of WBG activities to develop rural Panchayat 6 Following benchmarks set in India’s Fiscal Responsibility and Budget Management Act for multiple years. 26 Raj Institutions (PRIs) and Urban Local Bodies, with the goal of increasing the capability of these local governments to shoulder greater service delivery responsibilities. 50. IFC will strengthen state governments’ capability through demand-driven advisory services, particularly for PPP engagements. PPP transaction advisory services will be provided in response to requests from governments. The focus of these advisory services will be on addressing development gaps and assisting state entities in mobilizing private capital through best practice PPPs. These services could be in sectors such as renewable energy, transport (including roads, railways, airports, ports), logistics and urban management; all sectors where IFC has intensive global experience of providing PPP transaction advisory services. In addition, IFC will continue to provide institution-building advisory services to state and municipal governments, such as financially-linked "Government-to-Person" (G2P) payments at scale and the creation of an enabling environment for green buildings and housing. IFC will also build on its strong track record worldwide in municipal finance to seek to strengthen the capacity of municipal governments and institutions to undertake large and complex investment projects. How #4: Supporting a Lighthouse India 51. The WBG will support a ‘Lighthouse India’ initiative to systematically create, curate, and disseminate knowledge and know-how generated through the country’s development experience. The WBG will seek to institutionalize knowledge sharing from both its own activities (see paras 71-74), including by leveraging networks of knowledge institutions and think tanks, use of information and communication technology for enhancing dissemination, and building capacity of the government partners to effectively document and share good practices. Examples for the WBG’s enhanced support for knowledge sharing include setting up the Urban Knowledge Platform, a PFM Community of Practice across states to share, learn, and implement good practices and a Knowledge Hub/Center for sharing innovative approaches for DBTs. Only through efficient transfer of knowledge will WBG activities have impact at scale. 52. Support for a Lighthouse India will include amplifying the country’s role as a leader on key global goods and leveraging its development experience for two-way learning with the rest of the world. For instance, the World Bank will provide technical support to the International Solar Alliance, an international organization co-led by India and France to facilitate adoption of solar power. It will also partner with India in its leading role in promoting disaster resilience, particularly in infrastructure development. The WBG will facilitate South-South knowledge cooperation in line with the government’s strategic plan for expanding development cooperation, such as developing an India-Africa partnership and cooperation of countries in the South Asia region. Support will include documenting and sharing India’s experience on global platforms/events, supporting study tours, expert exchanges among India and other countries, and facilitating deeper collaboration for transfer of development experience and investments between India and other countries. Some of the thematic areas of demand from other countries to learn from India include: agriculture, rural development, local governance, skill development, PFM, delivery of social protection programs, and energy efficiency. Finally, the WBG will support India in becoming a more effective development partner for other countries, leveraging the Group’s global presence and experience in supporting the launch of development cooperation platforms for other middle-income countries. IFC and MIGA will look to support the scaling up of India’s development experience and private investments in Africa and Asia. 27 53. Support on the global stage will be complemented by efforts to foster greater regional cooperation. The WBG will support sustained dialogue among policy influencers and the private sector to sharpen awareness and strengthen coalitions for action on common development challenges within and across countries. The WBG will also exploit windows of opportunity through regional activities as well as India-specific lending and ASA in areas which also benefit regional cooperation. Particular areas of focus will include: (i) putting in place the building blocks of a regional electricity market (connected with Central Asia and potentially East Asia); (ii) developing transport infrastructure and strengthening policy and institutional (trade facilitation) arrangements to move South Asia toward Association of Southeast Asian Nations (ASEAN) levels of intra-regional trade and investment; and (iii) improving the management of shared natural resources and disaster risks through collaborative cross-border institutional arrangements. WBG operations supporting connectivity, power, and trade within regions, particularly in the Northeast, will have indirect benefits that support regional cooperation. 54. The impacts of the ‘How’ approaches will collectively constitute an important measure of success for the CPF. The application of the ‘Hows’ are integral to the intervention logic to achieving CPF objectives and are correspondingly reflected in the Results Framework. At the same time, the WBG will monitor achievements in applying the ‘Hows’ across its engagement. At the operational level, the WBG will systematically track the application of the approaches, registering the instances of applying the MFD approach, creating markets, developing state partnerships, institutional strengthening including mechanisms for citizen feedback, and the number of formal arrangements for institutionalizing knowledge exchange and exchanges themselves. More importantly, the WBG will qualitatively assess the impact of the approaches unto themselves in making the Group a more effective development partner (see paragraph 75 on monitoring the CPF). Table 2. Qualitative Measurement of the ‘Hows’ ‘How’ Approaches Impacts to be Measured Leveraging the • Improvements in market mechanisms that leveraging the private sector Private Sector • Volume of financial resources that leveraged or mobilized through products inclusive of loans, equity, and credit enhancement products • Innovations in leveraging financing Engaging a Federal • Qualitative assessments of improvements in state implementation capability in a India key area (also to include relevant quantitative measurements from operations, including core partnership operations) Strengthening Public • Institutional improvements in sectors Sector Institutions • Improvements in core public sector functions of PFM, debt management, local government institutional strengthening, and quality of statistical systems (including results from operations supporting core governance such as reduction in budget variance, increase in share of procurement contracts publicly available, and reduction in the cost of collection of state level taxes in select states) Supporting a • Qualitative assessments of the impact of knowledge exchanges on government Lighthouse India programs or policies, and south-south knowledge cooperation. • Progress toward institutionalizing practices and platforms for knowledge sharing 28 C. CROSS-CUTTING THEMES 55. WBG activities will be informed by, and achieve results toward, three cross-cutting themes. These themes are: pursuing climate smart engagement to support India’s climate change mitigation and adaptation efforts; systematically addressing gender-based inclusion gaps; and harnessing high-impact technologies for development. Work on climate change and gender are aligned with WBG corporate priorities. Impacts in these areas, such as reduction of greenhouse gas (GHG) emissions, are reflected in the intervention logic and results indicators for specific CPF objectives (see Annex 1, Results Framework).7 Climate Smart Engagement 56. The WBG will support the GoI’s climate mitigation and adaptation efforts across the portfolio. India is highly vulnerable to climate change while its development choices will have a global impact. Climate change effects are estimated to have the potential to push 45 million people into poverty in India At the same time, the country is a world leader in promoting policies and practices to address climate change, such as its championing of renewable energy through the International Solar Alliance. The WBG will support India’s efforts to address climate change through a mix of climate-focused operations and ASA across CPF objectives. In addition, the WBG will employ the ‘How’ of leveraging the private sector to support the development of market mechanisms to tap private sector financing and knowhow to tackle India’s climate change-related challenges (see Box 4). 57. The WBG will aim to increase the proportion of climate change co-benefits (CCCBs) from new commitments during the CPF period. IBRD and IFC will prioritize operations which contribute to climate change adaptation and mitigation and ensure that design of operations maximizes climate benefits while giving due consideration to cost efficiency and implementation capability. Appraisal of all operations will include a calculation of the CCCBs. For the first three years of the CPF period, IBRD commitments will meet the World Bank’s targets for CCCBs of 28 percent with an aspiration to achieve higher levels of at least 35 percent co-benefits per year (IBRD CCCBs were 37 percent in FY17 and are expected to exceed 50 percent in FY18). At the same time, in line with WBG global commitments, IFC will scale climate-related investments to reach 28% of IFC’s annual financing by 2020. Targets for the CPF’s last two years will be determined at the mid-term Performance and Learning Review. 7The WBG corporate priority on ensuring citizen engagement across WBG operations is addressed through the systematic application of the ‘How’ of strengthening public sector institutions. 29 Box 4. WBG Partnership with India to Address Climate Change India has committed to ambitious Nationally Determined Contributions (NDCs) within the framework of the Paris Agreement on Climate Change. Its key NDCs are: 1. To reduce the emissions intensity of its GDP by 33 to 35 percent by 2030 from the 2005 level requiring major effort to improve energy efficiency and reduce the energy and emissions intensity of India’s growth; 2. To achieve about 40 percent cumulative electric power installed capacity from non-fossil fuel based energy resources by 2030 requiring massive investments in renewable energy; 3. To create an additional carbon sink of 2.5 to 3 billion tons of CO2 equivalent through additional forest and tree cover by 2030 requiring intensification of reforestation and afforestation efforts; and 4. To better adapt to climate change by enhancing investments in development programs in sectors vulnerable to climate change, particularly agriculture, water resources, Himalayan region, coastal regions, health and disaster risk management. The GoI’s National Action Plan on Climate Change outlines a range of policies and programs, including eight national missions, to achieve the NDCs. The WBG will support achievement of the NDCs with across several CPF objectives. The CPF’s first focus area, resource efficient growth, comprises five objectives which all include climate-smart activities. With respect to improving energy efficiency, the WBG is providing a $220 million loan and an $80 million guarantee to support the India Energy Efficiency Scale-Up Program which will scale up energy saving measures in residential and public sectors, and strengthen the Energy Efficiency Services Limited, including by enhancing its access to private sector financing. The WBG is also will support the GoI’s goal of installing 175 GW of RE capacity by 2022. This includes support for the 750 MW Rewa solar park in Madhya Pradesh (see Box 3). The World Bank is also partnering with the State Bank of India to provide US$625 million financing for up to 40MW of grid- connected rooftop solar generation. On mitigation, reducing the carbon footprint and GHG emissions, including through promotion of electrification of transport, will be central to achieving objectives to improve livability of cities and reduce urban air pollution. The WBG will also facilitate large increases in renewable power generation as part of its sustainable energy objective and support the development of green housing. On the adaptation side, focus will be given to adopting climate resilient agricultural practices, with recently launched operations in Tamil Nadu and Maharashtra. Disaster preparedness efforts will include technical support to develop resilient infrastructure. WBG activities to improve connectivity and logistics will improve the resilience of key transport and logistics infrastructure and provide for mitigation effects from increased transport efficiency. IFC will lead key, innovative, proof-of-concept climate change interventions through its clients and with the private sector, introducing best practices in environment and sustainability and enforcing climate change targets across sectors where it is active. The WBG will provide technical expertise to develop market mechanisms to finance climate mitigation activities. Carbon pricing instruments can internalize the cost of carbon emissions from various economic activities and open the opportunity to design funds or other financial instruments for the funding of the NDC. The Partnership for Market Readiness—an effort managed by the WBG and involving about 30 countries—seeks to build market infrastructure and transfer knowledge and experiences to design more effective markets instruments to address climate mitigation. The WBG will work closely with public and private financial institutions, such as the GoI’s NIIF, to design market instruments to address the climate mitigation challenge and the limited capital available for NDC financing. Work with NIIF would focus on monetizing climate assets generated by NIIF’s portfolio, and reducing the overall cost of capital to finance the infrastructure that is needed for the implementation of India’s NDCs. 30 Addressing Gender Gaps 58. The CPF will focus on measures to address India’s gender gaps throughout the portfolio and through specific targeted activities. Given the broad range of gender challenges in India, the CPF will work on gender issues with strategic operational potential for the India portfolio (see Box 5 on Gender Issues). Analytical and operational focus will be on women's economic empowerment using the life cycle approach to women’s economic participation8; gender gaps in access to assets and markets; low human capital among women, in particular due to nutritional deficiencies and educational attainment gaps; and women's voice and agency in personal and public spheres. Consistent with WBG corporate priorities, IBRD will aim to carry out gender tagging for all new operations, supported by a dedicated focal point on the country team. Tagging involves analysis of gender gaps as they relate to the proposed operation, design and execution of actions to address these gaps, and monitoring of benefits for women. Harnessing High-Impact Technology 59. The WBG will help India maximize efficiency gains from technology while also anticipating potential disruptions arising from technological change. With 1 billion mobile phone users, fast growing e-platforms and a highly tech-savvy population, India's digital revolution will impact the country's development path. Although technology is not a substitute for good policies and implementation, if harnessed it can greatly accelerate development. In recent years, India has excelled in using technology, particularly information technology, to spur development. The WBG will continue to support smart applications of technology across multiple CPF objectives, such as promoting digital technologies and post-harvest and processing technologies to modernize farm production and increase rural productivity. Smart technologies in cities and vehicle electrification, are important elements of the CPF’s broader sustainability focus. The WBG’s efforts to improve the business climate and strengthen financial sector resilience and access to finance will leverage digital financial innovations and digitization of government- to-person and government-to-business transactions. The WBG will also support investment in technology and innovation ecosystems, including expanding firms’ capabilities to innovate, upgrading and expanding technology centers in India, and facilitating innovation in biopharmaceutical products and medical devices. Finally, as noted above, the WBG will initiate analytical work explore the social and economic development challenges and opportunities of so-called disruptive technologies’, focusing on implications for policies, regulations, jobs, and skills. 60. IFC will continue to have a particular focus on investing in disruptive technology which holds the promise of transforming traditional business models. Despite inadequate infrastructure, India has 462 million people connected to the internet, with 20% annual increase in recent years. This has led to a growth in the online consumer market with an estimated digital commerce market growing at 60% per annum. In response to this opportunity, IFC will continue to invest in edutech, healthtech, e-logistics, and Business-to-Business (B2B) technology platforms as well as Venture Capital (VC) funds that support these technologies. These efforts will build on IFC’s ongoing portfolio. For instance, IFC has invested in several eCommerce platforms that are bringing digital connectivity to Small and Medium Enterprises (SMEs), enabling online transactions, improved business productivity, comprehensive data tracking and transparency, as access to finance for small business owners. Examples include Power2SME, a digital 8A life cycle approach recognizes that different interventions and evidence are required to improve the human capital, economic empowerment, and voice and agency of women and girls at different stages of their lives. 31 Box 5. Overview of Gender Issues India has enjoyed strong growth with decades of commitment to inclusion, but some gender gaps remain, particularly with respect to economic participation. In the World Economic Forum’s Global Gender Gap report for 2017, India ranked 108 out of a total of 144 countries, with the greatest challenges lying in women’s economic participation. According to the Economic Survey 2017-2018, the percentage of women who work has declined overtime, from 36% of women being employed in 2005-06 to 24% in 2015-16. In order to understand spatial variations, it is important to note that in 2015-16, LFPR for rural women stood at 26.7% as compared with 16.2% for their urban counterparts (Annual Employment-Unemployment Survey 2015-2016) However, according to the latest available ILO estimates, the female LFPR for India stands at 27% in 2017. The SCD notes that data from the NSS and other research find that, alongside factors such as women dropping out of the labor force when incomes rise safety concerns and social norms about house and care work lower women’s mobility and participation in paid work. In addition, the SCD observes that by one estimate, GDP growth could accelerate by one percentage point if India were to close just half its female LFPR gap with that expected by its level of income. Greater inclusion with respect to women’s entrepreneurship and access to finance is important. Women in India fully or partially own around three million enterprises which contribute to about 3% of industrial output and employ about 8 million people. Roughly three in every four of such enterprises belong to the services sector, and almost 98% of women owned businesses are micro enterprises. It is estimated that the total financial requirement for women owned businesses in India in 2012 was $158 billion, but these firms accessed only around $42 billion from formal lenders, mainly from microfinance institutions. Women tend to use microfinance – indeed, more than 90 percent of India’s 90 million plus microfinance clients are women – but these small loans are in some cases not sufficient to help women grow their businesses, which would in turn generate more employment. More generally, estimates indicate relatively low levels of female ownership of land and other real property. The GoI has been seeking to address the challenge of access to finance, including through a Standup India scheme, which will facilitate two entrepreneurial projects on an average of one for each category (Women and SC/ST) of entrepreneurs per bank branch (source: IFC 2014). India has made progress on human development outcomes for women, but there continue to be areas for improvement. Thrust on providing primary education has yielded results with India successfully achieving gender parity in enrolment in primary education. The Gross Enrollment Ratio (GER) for all persons in elementary education increased from 81.6% in 2000-01 to 96.9% in 2015-16. At this level, the GER for boys and girls increased by 4.5 (from 90.3% to 94.8%) and 26.4 (from 72.4% to 99.2%) percentage point respectively during the stipulated period (MHRD data). GER for secondary education stands at 79.16% for boys and 80.97% for girls in 2016-17 (MHRD data). Greater efforts are now being made by the Government of India to enroll and retain girls into secondary and higher secondary schools. According to the Census 2011, the sex ratio stands at 940 females per 1000 males; this figure compares favorably with 2001 Census data, when the sex ratio was 933 females per 1000 males. According to the sample registration system (SRS) data released by the office of Registrar General of India, India’s maternal mortality rate has witnessed marked improvement in recent years: the rate reduced from 254 deaths per 100,000 live births in 2004-06 to 130 deaths per 100,000 births in 2014-2016. GoI improvements to rural health infrastructure and national programs to prompt women to opt for institutional deliveries have contributed to this significant improvement. Women have considerable voice in local institutions. Women account for nearly 1.4 million elected representatives in rural Panchayati Raj Institutions, or about 44 percent of all such representatives, and similarly 43 percent of gram panchayats (2018 Economic Survey). In addition, India is home to nearly 8.5 million self-help groups of women, which have not only connected women to finance and economic opportunities, but more importantly have given women voice and a sense of agency. In both cases, consistent state and national public policy has promoted women’s empowerment through these bodies. Sources: IFC. 2014. Improving Access to Finance for Women-owned Businesses in India: A Research Report on Opportunities, Challenges, and the Way Forward. New Delhi: International Finance Corporation; Verick, S. & Ruchika Chaudhary. 2014. Female Labour Force Participation in India and Beyond. New Delhi: IL; World Bank. 2018. India Systematic Country Diagnostic: New Delhi: World Bank; World Economic Forum. 2017. The Global Gender Gap Report. Economic Survey, 2017-18, Government of India; Annual Employment-Unemployment Survey 2015-2016, Ministry of Labor and Employment, 2015-16. 32 platform for manufacturing SMEs to buy raw materials and Bizongo, a technology platform that helps SMEs in the packaging industry achieve higher sales and enhanced plant capacity utilization. IFC’s investments in e-logistics are similarly transforming supply chains across India e.g. Blackbuck, an online marketplace helps small fleet owners find and bid for shipping jobs from large customers, and also supports fleet owners in managing operating expenses through the use of e-tolls and digital fuel cards. In addition, IFC’s investment in Byju is enabling deep, conceptual learning for students from kindergarten to 12th Grade across 1700 towns in India through personalized learning paths. IFC plans to continue identifying and supporting such innovative technology disruptors that promise to ease access and affordability of essential services such as education and healthcare through the use of artificial intelligence. IFC’s investments in VC funds bring a multiplier effect to its direct investing work e.g. Pi Ventures invests in businesses that use artificial intelligence for affordable and early detection of cardiac diseases and cancers, creating strong impact in the markets they serve. D. STAKEHOLDER CONSULTATIONS 61. A survey of stakeholders and extensive consultations with national and state governments, private sector, development partners, think tanks, and nongovernmental organizations (NGOs) guided the formulation of the CPF. A 2018 survey about perceptions of development priorities and the World Bank Group’s performance in FY18 which underscored the importance of education and skills, rural development, and generating jobs (see Box 6). Consultations emphasized the need to improve public sector implementation capability and the importance of increased and strategic state-level engagement. Stakeholders recognized the WBG’s value addition as a leveraging and knowledge institution and supported better transfer of successful approaches across states and globally; this observation was echoed in survey results which pointed to greater demand for knowledge services from the WBG. The consultations also pointed to the need for a forward looking, strategic approach, including anticipating challenges and opportunities from disruptive technologies and innovations. Relative priorities differed across stakeholder groups. For instance, representatives of low-income northeastern states prioritized water resources management, flood management, and strengthening connectivity, skills, and enterprise development. NGO representatives voiced support for strengthening local governance, well-being of differently-abled people, affordable housing, job creation in rural areas, and strengthening data collection and monitoring systems. Private sector actors highlighted demand for policy and regulatory certainty, stronger market linkages, improved logistics, deepening of capital markets, and access to finance and credit enhancement. Researchers and advocates from think tanks suggested that the World Bank should deepen its analytical work in the context of India’s and global development issues and debates. 33 Box 6. 2018 India Country Opinion Survey Highlights Respondents to the FY18 India survey stated that the most important development priorities for India were education and skills development, job creation and employment, agriculture and rural development, poverty reduction, and health and sanitation. Questions on the most important contributors to poverty reduction and where the WBG should focus its resources highlighted these same five areas, with priority given to agriculture and rural development, education and skills development, and job creation and employment. A plurality of respondents stated that the WBG should offer more knowledge products (33 percent), whereas 31 percent stated that the combination of knowledge and financial services was appropriate for India and 21 percent stated that more financial services should be provided; this contrasts with the 2015 survey where the respective responses were 18 percent, 20 percent, and 50 percent. Survey data shows that persons who collaborate with the WBG are significantly more positive about the Group than those who do not. The WBG receives very positive ratings for its relationships on the ground and is viewed as a long-term partner which is respectful and straightforward. The survey represents a small snapshot of stakeholders across India, with the biggest percentage of respondents consisting of civil society representatives. Source: FY18 India Country Opinion Survey, The World Bank Group. E. IMPLEMENTING THE FY18-FY22 COUNTRY PARTNERSHIP FRAMEWORK Financial Envelope 62. The IBRD-financed portion of the CPF program is based on lending of US$3.5-4 billion per year. This volume of lending would be subject to the World Bank Board-approved Single Borrower Limit (SBL) of US$ 21 billion, allowing for the additional room that could be made available (if at any stage the SBL becomes a constraint to lending) through India’s agreement to purchase up to US$ 4.3 billion in Special Private Placement Bonds (SPPBs) issued by IBRD. Average lending of US$ 3.5-4 billion per year is slightly more than the average volume of combined IBRD and IDA lending during the preceding five years (US$ 16.5 billion in FY13–17, or US$ 3.3 billion per year). This aspiration, in the early part of the CPF period, could be achieved through front loading of the IBRD headroom. New lending will build upon the current portfolio of US$ 27.4 billion in IDA and IBRD commitments; while the total number of operations is not expected to grow substantially beyond the level of 103 operations as of July 2018, the amount of commitments in IDA will decline as those operations close, while IBRD commitments will increase. 63. The World Bank will be proactive in managing the financing envelope for IBRD. Consistent with commitments to improve portfolio performance (see paragraph 73), rigor in cancelling where warranted all or part of slow-disbursing loans which reflect inefficient use of capital will provide modest additional IBRD headroom. The World Bank will also further explore piloting approaches to facilitate early payback of loans, particularly when risks are minimal after completion of operations. 64. IFC’s expects to invest US$2–4 billion per year in own and mobilized financing, or some US$10– 13.5 billion over the CPF period, depending on economic and market conditions and judicious application of MFD principles. This would constitute a significant upscaling of IFC’s program, reflecting its intent to address, at scale, the most significant development challenges in areas where the private sector can provide solutions and deliver the greatest impact. Insofar its charter mandates that IFC be a minority investor charged with playing a catalytic role, it has built-in mechanisms and systems to leverage capital from private sector and other partners. IFC will use its full suite of investment products and expertise, and 34 its advisory services, including PPPs, to create markets and to crowd in the private sector, and promote private sector-led inclusive, strong and sustainable growth. 65. MIGA expects to provide guarantees during the CPF period, with the volume of financing dependent on market interest. MIGA is exploring supporting infrastructure and energy projects using its credit enhancement guarantee products to support commercial financing. In the event of client receptivity to these instruments in India, MIGA anticipates that the volume of guarantees will ramp up given the scale of the country and infrastructure needs. MIGA will also make its service available to Indian companies to support expanding investments in other developing countries. Country Procurement and Financial Management Systems 66. Procurement policies, procedures, and practices vary significantly across states and among ministries and agencies, though central entities operate within the procurement rules contained in General Financial Rules, 2017. Procurement capacity is also limited in some states and central government departments, while state-owned enterprises perform better overall and, in some cases, have world class systems. Procurement remains unduly slow in many World Bank-financed projects owing to capacity constraints. In particular, operations which finance infrastructure often experience delays and cost overruns with contract enforcement a persistent, significant problem. The government has identified contract dispute resolution as a priority and correspondingly has recently brought amendments to the Arbitration law and proposed establishing a national Arbitration Council. At the same time, there are positive trends in the increasing use of e-procurement across the country, which will improve efficiency and transparency. The World Bank is supporting improvement of procurement capacity through specific reforms included in PFM projects and ongoing mass training initiatives on procurement and contract management capacity enhancement. Finally, capacity building in construction project management and a certificate course in contract dispute resolution will be rolled out during this CPF. 67. WBG-financed operations increasingly employ country procurement systems. Most contracts procured by India’s public sector, including those financed by World Bank financing, fall under either national procurement procedures or the Government e-Marketplace for shopping. Procurements above a threshold of US$40 million for works and US$3 million for goods follow World Bank International Competitive Bidding procedures. If the Indian supplier market matures, thresholds for national procurement procedures may be revised upward during the CPF period. In addition, one Indian agency, PowerGrid, a state-owned utility, has been assessed and deemed prima facie eligible for alternative procurement arrangements (APA), which provide for using the agency’s own procurement procedures in IPF projects. Efforts are ongoing to bring more agencies into similar levels of readiness for piloting APA. PforR projects in the portfolio fully use country procurement systems. Training to build the capacity of auditors recently began, with a view to engage them in conducting the post-procurement review of WBG- financed projects. Financial Management 68. The WBG relies extensively on country financial management systems in operations that it finances. Project and entity audits are conducted by the Comptroller and Auditor General (CAG). For projects implemented by institutions outside government departments, such as Special Purpose Vehicles, 35 financial management arrangements are suitably strengthened to mitigate financial management risks. Project-specific arrangements may include separate project bank accounts, strengthening staffing, and internal and/or external audits by private firms. Such arrangements, in many instances, are also done with the objective of strengthening institutional financial management capacity. 69. The WBG will support further strengthening of PFM policies, systems, and capacities at national and state levels through TA and lending operations. India’s PFM framework is grounded in the constitution and guided by central government policies and regulations and has evolved over the years. Budgeting follows a structured and well-defined process, systems for accounting and reporting of for receipts and payments are automated, and audit reports are issued by the CAG on a timely basis. An important development in recent years has been adoption of direct cash transfers to transfer individual benefits across large national programs, thereby contributing to improved cash management, more efficient targeting and delivery of entitlements, and potentially enhanced transparency and disclosure. The World Bank’s continued focus will be on issues including: (a) improving the credibility of the budget; (b) enhancing the quality of expenditure reporting between the center, states, and implementing units for national schemes; (c) modernizing the budget and account code classification system (Chart of Accounts); (d) strengthening internal audit; and (e) enhancing legislative (Public Accounts Committee) scrutiny of CAG audit reports and public awareness. 70. At the sub-national level, the PFM framework is largely guided by policies laid down at the center, but varies significantly in its effectiveness and capacities. Some states have made significant investments in PFM systems—especially in information technology to strengthen, among others, core treasury information systems, human resources management information systems, cash management, e- collections and payments, and electronic interfaces with commercial banks and the RBI. The WBG will support the transfer of such good PFM systems and practices across states, while continuing to support the states to implement new reforms to address remaining challenges such as the overdependence of some states on transfers from the center; payment delays due to fiscal stress and unsustainable debt; the lack of well-functioning financial management information systems; and weak internal audit systems and human resources. Managing Implementation 71. The World Bank Group will use its full range of instruments to achieve CPF objectives. While Investment Project Financing will continue to be the World Bank’s primary lending instrument, the World Bank’s program will seek to expand the proportion of PforR operations from its current level of 10 percent in terms of numbers and 12 percent of commitment volume. PforR operations are expected to be used to incentivize better service delivery, such as in the education sector. In contrast to the preceding CPS period where only two DPFs were approved, the World Bank will more actively explore using the instrument to address institutional and regulatory constraints, beginning with DPF operations to reform power distribution and water companies. The India program also expects to use the newly available multi-phase approach (MPA) to financing operations. The World Bank will continue RAS arrangements building on its first ever RAS in the country with the RBI in 2016–17. RASes will be pursued where there is government demand at the national level, such as in promoting logistics and core financial management as well as in states. The World Bank will also continue to provide NLTA and carry out analytical work as part of its 36 knowledge services. Similarly, IFC will continue to employ a mix of investments and advisory services to deliver on CPF objectives. 72. The World Bank will work closely with DEA to ensure strategic focus and coordination of the pipeline of operations. The World Bank and DEA will work together to ensure efficient allocation of resources in advance of beginning preparation. It is expected that approximately 15 new operations will enter and commensurate number exit the portfolio each year, meaning that the portfolio size will remain stable over the CPF period. New operations will underpin innovations envisaged in this CPF such as core state partnership operations and expanding work in relatively new areas, such as controlling air pollution. The time to prepare new operations is expected to be reduced owing to new DEA requirements that all projects reach appraisal within 18 months of the date in which the operation is proposed for World Bank funding, failing which a GoI Screening Committee would need to sanction the project again. The tighter timeframe should also ensure ownership by implementing agencies. 73. The World Bank in partnership with DEA will improve portfolio performance through rigor in ensuring timeliness and quality at entry of operations and greater proactivity during implementation. While the IDA and IBRD portfolios perform well in achieving development outcomes, the World Bank will work to improve the timeliness of implementation.9 The World Bank and DEA will continue to apply readiness criteria before approving operations. Criteria may evolve, but presently include having all implementing arrangements in place including the full complement of key staff, readiness to award at least 30 percent of contracts for works and 100 percent of the consultancies (for example, independent verification agency for disbursement linked indicator-based operations), and identifying early milestones including key pre-procurement actions, if any, to ensure efficient and timely start-up. The World Bank in close coordination with DEA will closely monitor portfolio performance through regular thematic and state/region specific reviews and be more aggressive in applying remedies, including suspension and partial or complete cancellation, for stagnant operations where there is no longer client commitment. At the same time, the WBG will maintain its policy of zero tolerance of corruption during implementation, maintaining robust detection and deterrence mechanisms as part of fiduciary support across the portfolio. Mechanisms include improving transparency and effectiveness through e-procurement and other technology platforms and support to contracting entities in addressing conflict of interest and carrying out due diligence. Advisory Services and Analytics 74. ASA – the WBG’s knowledge services -- will be central to achieving CPF objectives. The WBG will carry out ASA to inform policy debate, provide analytical underpinnings and learning for operations and strategy, facilitate the scale up of innovative solutions as a complement to Lighthouse India, and improve state capability. These knowledge services will be provided to national and state governments as well as other stakeholders through just-in time policy notes, deeper analytical pieces on systemic issues, harnessing its convening power for knowledge generation and exchange among stakeholders, TA programs, and evidence-based assessments of programs. Three principles will drive the WBG’s approach to delivering high quality knowledge services: (i) a sustained focus on ‘Knowledge in Implementation’ from 9The CPS CLR notes 87% of 31 operations evaluated during FY12-17 were rated moderately satisfactory or better. However, undisbursed balances have increased (until a slight decline in FY17), standing at $16.4 billion at the beginning of FY18 while projects on average take almost eight years to implement and 28 months after Board approval to reach 10% disbursement. 37 both WBG-financed activities and more generally India’s experience, (ii) leveraging the WBG’s global reach and expertise to inform ASA on India’s challenges, and (iii) partnering as much as practical with Indian institutions in generating and transmitting ASA. 75. The WBG will have a robust ASA program to inform policy debate on pressing issues of today and emerging challenges of tomorrow. The WBG will broaden and deepen policy dialogue on a wide range of issues, including urbanization policy, controlling air pollution, and women’s empowerment through corresponding multi-sectoral knowledge platforms which will both serve as conveners and generators of knowledge. The WBG will continue its biannual series of India Development Updates, which provide macroeconomic monitoring and analysis of key trends. The WBG will also importantly expand its analytical work on poverty, benefiting from the expected completion of the updated household income and expenditure survey in FY19. In addition to contributing to topical issues, the WBG will also produce substantial analysis on India’s evolving challenges for India, particularly in the areas of disruptive technologies and trends that affect Jobs. In particular, the WBG will leverage its flagship publications Trouble in Making? Future of Manufacturing Led Development, The Innovation Paradox, and the upcoming World Development Report on the Future of Work to provide insights for India. 76. Analysis and advisory services will continue to improve strategies to achieve CPF objectives and the design of operations. The WBG will continue to undertake analytical work within the scope of project preparation and as stand-alone ASA to develop understanding of sector challenges, political economy issues driving sub-optimal outcomes. ASA to provide analytical underpinnings will be required given the expected modest increase in development policy financing and PforR operations. The World Bank will carry out impact assessments to allow for learning from innovations as well as develop tools for more rapid feedback on implementation of operations and its poverty impacts. Knowledge in implementation from World Bank -financed projects will be systematically analyzed, captured and shared across states to scale-up good practices. 77. The WBG will provide technical assistance and advisory services to improve state capability. This support will be provided through leveraging trust funds managed by the WBG, NLTA, and expanding the use of RASes. Important areas of World Bank TA will include supporting debt management at national and state levels, strengthening financial resilience through support for implementing aspects of the Bankruptcy and Insolvency Code, development of tools to benchmark states’ performance in logistics and service delivery, and partnership with the National Statistics Office. IFC will expand its advisory services to specifically support PPP transactions, market development, access to financial services and good quality jobs for women in private sector. Likewise, IFC will strengthen states' capacity to leverage private sector finance for public services. Finally, the WBG will support capacity building at scale through structured training programs delivered in partnership with Indian training institutions, including through mass online learning courses such as ongoing training on public procurement. 38 Table 3. Highlights of WBG Advisory Services and Analytics Transversal Topics and Themes Poverty Analysis Governance and Service Delivery India Development Updates Building Capacity in Indian States Disruptive Technologies and Future of Jobs Lighthouse India Gender Knowledge Platform Promoting Resource Efficient Enhancing Competitiveness Investing in Human Capital Growth and Enabling Job Creation Agriculture, Value Chain Support for Debt Management to Investing in Early Years Development, and Food Government of India Universal Health Care Processing Post FSAP, Financial Sector Skills Development India Urban Knowledge Platform Programmatic Support Education: Improving Quality and Urban Air Quality Improvement Infrastructure Finance Sectoral Teacher Performance Programmatic ASA Assessment Rural Water and Sanitation Electricity Distribution Reforms, Jobs and Spatial Transformation Service Delivery Institutions and Renewable Energy and Energy Ease of Doing Business Models Efficiency State Level Logistics Performance Building Institutional Capacity for Climate Mitigation Action Support Indicators (RAS) Human Development Service Strengthening Disaster Risk Delivery Knowledge Partnership with Management Reserve Bank of India (RAS) Learning from Implementation 78. The WBG India country team will leverage experience and lessons learned on how the WBG can be most effective in large countries with strong subnational units. such as Brazil, China, and Indonesia. Topics for the exchanges will include: designing operations to provide feedback between implementation at state level and national policy; reconciling differing priorities for WBG partnership at state versus national and local levels; building strategic state partnerships; and how to balance the commitments among states with different development needs. 79. The WBG will in conjunction with the GoI carry out regular monitoring of progress toward objectives and in applying the ‘Hows’ in order to learn and adapt more responsively to achieve results. Country management will track progress on achieving CPF results (see Annex 1, Results Framework) as well capitalize on operations’ M&E to make adjustments in new operations and the overall portfolio. The WBG will consult with external stakeholders among public sector institutions, the private sector, NGOs, and the think tank community about progress on implementing the CPF, particularly in assessing the impact of the ‘Hows’. These efforts will complement the requisite mid-term Performance and Learning Review which will provide an update to the CPF. Updates are expected to include adjustments to objectives that presently are relatively new areas of engagement for the WBG, such as work on air quality in select cities and enabling access to more quality jobs for women. 39 Partnerships and Development Partner Coordination 80. The WBG will collaborate with multilateral and bilateral development organizations, industry associations, foundations, national universities and think tanks. While development partner coordination is led by the DEA, the WBG will work to provide complementarity and synergies with other organizations to maximize impact. The World Bank will continue to finance two projects and carry through on preparations of four other projects in collaboration with the Asian Infrastructure Investment Bank. The WBG will similarly explore opportunities for technical cooperation and complementary financing with the Asian Development Bank and the New Development Bank. The World Bank will continue to share approaches on technical issues and pursue further partnerships with bilateral agencies including the Japanese International Cooperation Agency, particularly with respect to transport infrastructure, the U.K. Department for International Development (DFID), the U.S. Agency for International Development, and Australian Department of Foreign Affairs and Trade (DFAT). The WBG also will work with United Nations agencies, particularly the United Nations Children’s Fund (UNICEF) on maternal and neonatal care and early childhood development. The World Bank and IFC will build on their ongoing partnerships with the Bill and Melinda Gates Foundation and the Tata Trust to support innovations addressing health, water, sanitation, and rural livelihood development issues. The World Bank and IFC will also continue to partner with DFID, DFAT, and the European Union on regional programs that benefit India. The WBG will seek to expand partnerships with local think tanks, research institutes, and universities, with a particular focus on poverty analysis, agricultural innovations, water resource management, and urban development. IFC will also strengthen partnerships with industry associations to engage with a broader audience on private sector development issues. These partnerships will be critical in contributing to public debate around policies, and addressing cross-sector development challenges identified in the CPF. Partnerships with local think tanks and research institutions will also be pursued to facilitate expansion of knowledge sharing across states and in exchanging development experience between India and other countries. 40 IV. MANAGING RISKS 81. The overall risk rating for Table 4: Systematic Operations Risk-Rating Tool implementing the CPF is moderate. An Risk Category Rating (H, S, M or L) assessment of risks is complicated in a Political and governance Moderate federal country like India, with generally Macroeconomic Moderate lower risk at the federal level and higher Sector strategies and policies Moderate risks in some states which may have greater Technical design Moderate capability challenges. Political risks are Institutional capacity for Substantial connected with a potential pause in some implementation and sustainability Fiduciary Moderate activities associated with the conduct of Environment and social Moderate elections in key states over the CPF period Stakeholders Low and nationwide in 2019. However, while Overall Moderate elections may yield changes in government, there is high confidence that the major thrust of India’s development priorities and needs will remain consistent, posing little risk for carrying out the CPF program. India’s macroeconomic fundamentals are strong despite challenges in the domestic banking sector and a possibly less benign global environment if key countries adopt protectionist measures that affect trade. Macroeconomic risk will be closely monitored during the CPF period and mitigated in part by WBG activities to strengthen financial resilience. Sector strategies and policies vary greatly. In a few sectors there are significant policy issues, such as support for agriculture and the role of local government, which are in turn a focus of WBG activities. However, in most sectors government policy and strategies do not pose a risk to achievement of most objectives. There are pockets of relatively higher risk in terms of fiduciary (including corruption) or safeguards risks in certain sectors in certain states, particularly LIS, owing to capacity issues. The World Bank intends to provide proactive support and training to mitigate and minimize fiduciary and safeguards risks in specific operations. 82. Technical design risk is assessed as moderate overall though there will be challenges to ensuring results on the ‘Hows’ and introduction of new, multi-sectoral objectives. While the approaches of leveraging, strategic state partnerships, institution building, and knowledge exchange are not new per se, the CPF establishes a higher standard in achieving results on these aspects of implementation. The quantum of increase in leveraging may be limited, depending on market conditions and evolving demand for financing, particularly with respect to IBRD. Similarly, the scope for achieving results in strengthening institutions will often be limited by political economy factors as well as the five-year time horizon for a CPF, whereas institution building is an inherently long-term endeavor. Nevertheless, while these risks are evident, the reward from progress in these implementation approaches make them worthwhile. The design risks associated with the four ‘Hows’ will be mitigated by socializing the approaches among Indian counterparts and the country team and regular reviews of what is working. An additional design risk is setting ambitious objectives for new areas of engagement and for which there is as yet limited operational underpinning and hence reasonable certainty of achieving substantial results: addressing air pollution; support for more quality jobs for women; and developing firms’ capabilities. Mitigation of risks to achieving these objectives will be a robust ASA agenda to underpin future operations as well as to promote policy dialogue and leverage existing operations which can contribute to impacts. Finally, the CPF has several multi-sectoral objectives (e.g. investing in early years, controlling air pollution etc.) which are more complex to implement and require extensive coordination among government agencies, other 41 stakeholders, and across the WBG itself. These risks will be mitigated by emphasizing implementation arrangements and institutional adjustments that take into account political economy, and ensuring high level attention to enforce cooperation across sectors. 83. The primary risk to implementation of the CPF is institutional capacity for implementation and sustainability. This risk is primarily at the state level where implementing agencies in some states may have capacity constraints in carrying out procurement of more complex works and services and manage corresponding contracts. Some of the LIS face market constraints limiting the number and quality of vendors/suppliers likely to bid for contracts in some sectors, particularly for consultancies and in the construction industry. These risks at state levels are expected to be mitigated by analytical work regarding market conditions in sectors and states that negatively impact implementation as well as the continuation of large-scale online courses and face-to-face capacity building on procurement and financial management in states. From a portfolio implementation standpoint, implementation risks will be closely monitored and mitigated through stronger coordination with DEA and states to ensure a strategic fit, particularly with the four ‘Hows’, in selecting operations for financing. World Bank and IFC country management will continue to focus on ensuring readiness and quality at entry, increasing proactivity in implementation and timely exit of operations. 42 ANNEXES Annex 1. Country Partnership Framework Results Matrix10 Focus Area 1: Resource Efficient Growth The WBG will support India’s efforts to achieve growth rates of over eight percent with a focus on facilitating a transition of India’s growth pattern toward greater resource efficiency. This focus is driven by India’s circumstances of having relatively scarce endowment of natural resources, particularly water and land. Sustaining high growth to drive poverty reduction and boost shared prosperity will necessarily require improvements in productivity and efficient management of resources, as is noted in the SCD. The WBG will target objectives in areas where productivity gains and resource efficiency represents an important challenge now and over the medium term for India. It will aim to: • Promote more resource-efficient, inclusive, and diversified growth in the rural sector; • Improve the livability and sustainability of cities; • Improve management systems for controlling air pollution; • Increase access to sustainable energy; and • Improve disaster risk management. Achieving results will require a multi-sectoral approach that effectively leverages the whole of the WBG. Results in these areas will contribute to improved productivity, better use of natural and physical resources, and increased resilience for India’s economy and citizenry. Key aspects of resource efficiency will also be integral to India’s achievement of its nationally defined contributions to addressing global climate change. Objective 1.1: Promote more resource-efficient, inclusive, and diversified growth in the rural sector Intervention Logic India faces challenges in achieving inclusive and diversified rural growth that benefits the bottom 40 percent of the population as well as increasing resource constraints in agriculture. The country faces decelerating productivity growth of food grains, and jobs are not being generated fast enough in rural areas to absorb labor out of agriculture and low productivity rural jobs. This has resulted in limited structural transformation. Incomes in rural areas need to be boosted through higher agriculture growth and generation of more jobs through rural enterprise and ecosystem development. At the same time, India’s agriculture sector has been on an resource-intensive path that raises concern about sustainability. Inefficient resource use also generates negative environmental impacts such as loss of arable land and biodiversity, declining groundwater tables, and pollution of water resources. The adverse effects of climate change are expected to aggravate further resource constraints and disproportionately affect the poor, potentially rolling back the progress registered in poverty reduction and food security. Key factors driving inefficient resource use include an over dependence on traditional crops (rice and wheat), limited cropping systems diversification, low agricultural productivity, insufficient investments in irrigation and post-harvest technology and poorly integrated value chains. The GoI has prioritized doubling farmers’ income through increasing agricultural productivity, diversification towards high-value crops, improved terms of trade for farmers, and promoting non- farm activities. National missions on sustainable agriculture; climate resilient agriculture; the Blue 10The baseline and targets for CPF objective indicators and supplementary progress indicators are based on activities financed by the WBG in India. 43 Revolution; green India, water conservation, irrigation access, and water use efficiency (WUE); and rural livelihoods provide an extensive framework for improving rural sector performance and benefits to people living in rural areas. The WBG will continue to partner with the GoI in implementing these priorities, placing greater emphasis on state capacity building and enhanced engagement with LIS or within the context of strategic state partnerships as they emerge. The Group will seek to catalyze the transfer of expertise, know-how, and innovation based on global good practices in climate-smart agriculture, aquaculture, forestry management, irrigation, WUE, and water resources management. The WBG will promote a more diversified rural growth. The WBG will support GoI’s reorientation of agriculture and fishery policies from production targets to income growth with a focus on sustainable productivity gains, shifting toward high-value crops and boosting agribusiness by supporting the development of inclusive value chains. It will finance investments that provide farmers with productive assets, better access to services, and improved connections to serve local, national, and export markets. This will include support for (i) modernizing farm production by unlocking the use of digital technologies and promoting mechanization; (ii) irrigation and drainage to improve the sustainability of agricultural growth and climate change resilience; (iii) promoting value-addition through post-harvest and processing technology; and (iv) promoting nutrition sensitive agriculture and aquaculture practices and strengthening food safety systems in the country. Efforts will be made to build needed services at state level, including agricultural research, extension and education services, and production-related services (for example, food safety, certifications, and agricultural/fishery/non-timber forest products (NTFP) marketing support services); promote various forms of producers' organizations to increase their bargaining power and thus help to establish business practices adapted to global challenges; and strengthen institutions and water users’ associations for improved first- and last-mile service delivery. The WBG will also build on the complementarity between the World Bank and IFC to leverage investments and value addition of the private sector with regard to water management, specifically towards: (i) the professionalization of water management agencies to ensure sustainable service delivery at scale; (ii) the development of new markets in services delivery in rural areas; and (iii) the promotion of water efficient micro-irrigation solutions and services, with a special focus on smallholder farmers. In addition, the Bank and IFC will continue to work together to promote viable PPP models for outsourcing of operations and maintenance (O&M) in the water sector. IFC will promote commercial and export-oriented modern farming practices in the rural sector. IFC will support companies in the farm inputs segment (i.e., fertilizer, seeds, hatcheries, fish feed and other inputs) coupled with advisory services focusing on improving farm yields, productivity, and water efficiency, as well as outsourcing irrigation service delivery through PPP arrangements, where applicable. To improve food safety in India, IFC will continue exploring scalable investments in food processing, food/commodity supply and distribution infrastructure (transportation, cold chains, storage facilities, etc.), as well as food safety testing laboratories. The focus on food processing also aligns well with the focus on creating value added employment in agribusiness sector. In addition, it will increase its focus on the rapidly growing packaged food and beverage segments to cater to the growing demands of the emerging middle class. By engaging through investments and advisory services, IFC will help institute operational best practices and compel adherence to quality standards that would increase consumer access to safe and high-quality food products. Finally, to support the demographic consumption trends, IFC will continue to focus on investments in the animal- and vegetable-based protein supply chains (poultry, aquaculture and aqua-feed operations, as well as modern, industrial pulses processing operations). IFC will benchmark these investments to global standards in terms of production efficiency, use of antibiotics/chemicals, animal health, and food safety. 44 The WBG will also support the GoI’s efforts to promote inclusion in enterprise development in agriculture, aquaculture, forestry, and other non-farm sectors, with emphasis on enhancing entrepreneurship rates and access to jobs for vulnerable groups (landless, women, youth, and scheduled castes and tribes). World Bank operations supporting livelihoods in select states including Jharkhand, Rajasthan, and Tamil Nadu will provide investments to (i) facilitate enterprise development through building capacity to deliver regulatory and support services including investment promotion in focus sectors, business development services, technology upgrading, product design, and innovation; and (ii) facilitate competitiveness of lagging regions and populations through cluster development, financial inclusion, skills development, and market linkage interventions. In implementing these activities, an explicit effort will be made to (a) leverage the institutional platform of women’s SHGs and their federations that have been systematically built up over the last 15 years of the WBG’s investment to drive greater inclusion of women; and (b) build upon and scale-up efforts to leverage private and public-sector financing, including from MFIs. The WBG will support steps to improve efficiency in use of natural resources, particularly water, as well as adaptation to impacts of climate change. The WBG will support ongoing efforts by the GoI to (i) improve the management of water resources through reforms and capacity strengthening; (ii) develop efficient, sustainable and performance-based service delivery models for the water sector; (iii) improve hydrological data information systems (including water quantity and quality) to monitor performance and use; (iv) foster investments in WUE, including irrigation and drainage; (v) promote efficient rural enterprise models and associated value chains for inland aquaculture, forestry including timber and NTFP, and agroforestry to reduce pressure on land resources and build resilience in the rural economy; (vi) implement the agroforestry and ‘trees outside forests’ programs as part of the national commitments on carbon sequestration; and (vii) build farmers’ capacity to adapt and mitigate the impacts of climate change including promotion of climate-smart agriculture practices inland aquaculture and improvement of the degraded forests, agroforestry, and plantation forests to restore and enhance ecosystems, preserve biodiversity, and reduce GHG emissions. State-level operations combined with knowledge exchange will underpin results. State operations to support a combination of climate resilience, water efficiency, sustainable productivity increases, and greater value capture and income for the rural population from agriculture will work in both LIS and more advanced states which still have pockets of relative poverty. State engagements will include Andhra Pradesh, the Northeastern states, Himachal Pradesh, Odisha, Maharashtra, Rajasthan, and Tamil Nadu. The WBG will also support effective aquaculture and forestry management through a national level intervention on efficient and sustainable aquaculture (Uttar Pradesh, Bihar, and Odisha) and through state-level improved forest management operations (Chhattisgarh, Himachal Pradesh, Madhya Pradesh, Meghalaya, Uttarakhand, and the Northeastern states). The Lighthouse India approach will be a major part of the intervention strategy, with knowledge exchange built into its state- level projects to facilitate the transfer of good practices, particularly with respect to climate resilience, efficient water usage, agribusiness, and forest management. CPF Objective Indicators Supplementary Progress WBG Program Indicators Indicator 1.1.1: Water Use Milestone 1.1.1: Number of IBRD Efficiency (WUE) in water users provided with Financial Services agriculture in select states new/improved irrigation and Ongoing (weighted average gross drainage services Rajasthan Rural Livelihoods Project; North East returns per cubic meter of Baseline (2017): 362,061 Rural Livelihoods Project; National Rural water used) Target (2022): 1,008,000 Livelihoods; National Dairy Support Project; (IBRD) Uttar Pradesh Sodic Lands Reclamation III 45 Baseline (2016): INR 16.0 per Project; Maharashtra Agricultural cubic meter water used Milestone 1.1.2: Number of Competitiveness Project; Maharashtra Project Target (2019): INR 26.4 per additional Gram Panchayats on Climate Resilient Agriculture; Karnataka cubic meter water used which have adopted Watershed Development II; Rajasthan (IBRD) participatory groundwater Agricultural Competitiveness Project; management Uttarakhand Decentralized Watershed Indicator 1.1.2: Water use Baseline (2018): 0 Development II Project; Sustainable expected to be avoided Target (2022): 1,000 Livelihoods and Adaptation to Climate Change; (cubic meters/per year) (IBRD) Neeranchal National Watershed Project; Baseline (2017): 0 Telangana Rural Inclusive Growth Project; Target (2022): 40 million m3 Milestone 1.1.3: Number of National Agricultural Higher Education Project; (IFC) farmers adopting improved Himachal Pradesh Horticulture Development agricultural technology Project; India: Andhra Pradesh Rural Inclusive Indicator 1.1.3: Additional Baseline (2017): 0 Growth Project; Assam Agribusiness and Rural land area where sustainable Of which female: 0 Transformation Project; Tamil Nadu Rural land management practices Target (2022): 1.49 million Transformation Project; Tamil Nadu Irrigated have been adopted in select Of which female: 0.48 million Agriculture Modernization Project; Jharkhand states (IBRD) Opportunities for Harnessing Rural Growth Baseline (2017): 0 Project; Bihar Transformative Development Target (2022): 74,000 ha Milestone 1.1.4: Number of Project; Dam Rehabilitation and Improvement (IBRD) farmers reached with Project; Water Sector Improvement Project; additional productive assets West Bengal Accelerated Development of Indicator 1.1.4: Number of or services Minor Irrigation; National Hydrology Project; targeted households in Baseline (2017): 0 and Biodiversity Conservation and Rural select states with at least Target (2022): 1.86 million Livelihoods Improvement; 50% increase in income (IBRD) Baseline (2017): 0 Pipeline Target (2022): 500,000 Baseline (2017): 500,000 AP Integrated Irrigation and Agriculture (IBRD) Target (2022): 600,000 Transformation Project; Odisha Integrated (IFC) Irrigation Project for Climate Resilient Indicator 1.1.5: Percentage Agriculture; Integrated Project for Source of targeted SHG households Sustainability and Climate Resilient Rain-fed that have at least one Agriculture in Himachal Pradesh; and additional source of income Agriculture Risk Resilience and Insurance Baseline (2017): 0 Access Project Target (2022): 20% (IBRD) IBRD Knowledge Services Rajasthan - Diagnostic Study on Groundwater- Energy-Agriculture Nexus; Improving Irrigation Systems for Agriculture; Water Resources Efficient Growth Paths IFC IFC investments in farm input segment, food processing, supply and distribution, and animal protein supply chains; IFC Advisory Services in water efficiency and improving farm yields/productivity; and Advisory Services programs on quality standards and food safety 46 Objective 1.2: Improve the livability and sustainability of cities in select states Intervention Logic Urbanization offers a pathway to rapid poverty alleviation, sustained economic growth, and achievement of middle income status. According to the 2011 Census, India’s urbanization rate was 31 percent; however, per the Agglomeration Index, 55 percent of Indians already live in cities. By 2030, 70 percent of new employment will be generated in cities and the number of urban households in the middle class will more than quadruple. Indian cities will need to accommodate 18 million new urban dwellers per year, create economic opportunities and provide urban services, while ensuring environmental sustainability and prudent management of natural resources like land and water. However, there are several constraints to maximizing the potential afforded by urbanization. Pressures on land, infrastructure, services, housing and the environment are acute. Access to basic urban services—water, sanitation, public transport, energy, and health care, among others—remains deficient in most cities. For instance, few Indian cities supply 24x7 water services. Urban housing remains unaffordable—even for middle-income groups—with a backlog of 19 million units and rising of which 11 million is in the affordable price range.11 In major cities, population growth has been fastest on the peripheries. There is a need to stimulate the supply of affordable housing by working with large banks/HFCs to design new pooled instruments and fill the financing gap for residential green construction, including through green bonds. The institutional framework for urban management could be improved in order to facilitate more livable and sustainable cities. Despite the 74th Amendment, urban local bodies are largely unable to meet the challenges of urban planning, management, and service provision due to lack of resources, capacity, and adequate empowerment. This lack of resource mobilization is reflected in the significant underinvestment by urban local bodies. Against the High-Powered Expert Committee for Estimating the Investment Requirements for Urban Infrastructure Services’ (2011) estimate of US$600 billion over a 30-year horizon, cities have been investing less than US$5 billion annually. On an average, cities borrow funds for less than 3 percent of their annual requirement; the bulk of this borrowing is through short-term loans from commercial banks. This does not expose cities to a systemic credit culture and does not bring in the much-needed fiscal discipline. The SCD highlights that India needs to pay particular attention to the spatial transformation of cities to harness the benefits of agglomeration economies, better conserve natural resources, and enhance livability in urban areas. Addressing these problems will require policies that can unleash the economic forces of agglomeration, while managing those of congestion. This will call for guiding the physical development and shaping the city footprint through adequate planning, catalytic infrastructure investments, improving connectivity within cities and between them and rural areas, use of approaches such as transit-oriented development, and adoption of smart technologies for enhancing sustainability. The GoI is implementing two national flagship programs—Smart Cities and Atal Mission for Rejuvenation and Urban Transformation (AMRUT)—to tackle infrastructure creation and provide better services through resource transfers and capacity building. These programs aim to incentivize states and cities to adopt reforms for improvement in service delivery, mobilization of resources, and making municipal functioning more transparent and accountable. The 14th Finance Commission has expanded the share of national tax resources available for urban local bodies, a fourfold increase in 11 Estimated by IFC at US$8,000-11,000, excluding the cost of land. 47 grants to urban local bodies, for INR 871.4 billion during the period 2015–20. Additionally, the national housing program, Pradhan Mantri Awas Yojna, aims to provide affordable housing for all urban poor. The WBG will strategically and selectively expand the engagement in the urban sector with primary focus on lifting the urban policy dialogue, institutional strengthening, and leveraging finance for urban development. The WBG will focus on three priority areas that merit attention to unleash growth potential and enhance livability of cities. These are (i) improving urban governance and finance, by helping cities strengthen core public management functions and mobilize private and commercial finance, where appropriate; (ii) investing in more inclusive and equitable cities, especially to enhance access to housing and services; and (iii) shaping city forms to create urban footprints that are more green, livable, and productive through emphasis on green transport and improved air quality. The WBG will provide support for improving urban governance and finance through deepening engagement with select states and cities. Fulfilling the true potential of the 74th amendment and improving urban governance and finance will require enabling frameworks for fiscal and functional devolution matched with enhanced resources and capacities as well as stronger mandates of public accountability of Urban Local Bodies (ULBs). Much of this agenda lies with the states and cities, who will be the key constituencies of the World Bank’s engagement. IFC and IBRD working as one WBG will focus on (i) strategically supporting national programs such as Smart Cities by engaging both center and select states/cities and linking them up through policy, institutional and investment coordination, (ii) strengthening urban management and service delivery through select state-level engagements to reform and strengthen local government systems and institutions, including within the context of strategic state partnerships; (iii) helping mobilize private capital in specific areas such as municipal waste management, wastewater recycling and reuse, municipal healthcare, urban transport, affordable/green housing, energy efficiency; and (iv) direct investment in cities without sovereign guarantee. IFC in particular will develop new business with municipalities and support PPPs to attract larger flows of financial resources and pioneer new instruments to promote private investment in public service delivery. Targeted support will be provided by the WBG to promote more inclusive and equitable cities. The focus of engagement will be on (i) land and housing, as a new priority area of engagement, aimed at taking a comprehensive view of the sector challenges and opportunities, informing GoI policies in select areas (e.g. rental housing) and national programs (Housing for All); (ii) investing in modern affordable public transport services as well as safe walking and cycling facilities; (iii) enhancing access to basic urban services such as water supply, sanitation, health; and (iv) strengthening urban safety net systems to benefit large groups of vulnerable urban poor. The WBG will support GoI objectives to develop affordable housing. To improve the livability and sustainability of Indian cities, the WBG will maximize finance for development to focus on filling the urban affordable/affordable housing gap. WBG activities in this sector will: (i) focus on supply-side constraints by centrally sponsored schemes; (ii) strengthen local government capacity and autonomy to lead large-scale affordable housing development; and (iii) improve policy and institutional coordination to promote integration, innovation and knowledge transfer. Recognizing that the creators of large future urban stock of affordable housing units will be housing boards, municipalities and urban local bodies (which have access to unencumbered urban land as well as the ability to expedite approval processes), the WBG will work support these entities with operations, knowledge transfer and capacity building to build rapidly and offer homes (using appropriate technology) to the target class either on their own or through PPPs. IFC, in turn, is supporting both HFCs for on-lending to retail buyers of affordable housing and developers of affordable/green housing to demonstrate the viability of affordable/green housing as a commercial proposition. IFC’s engagement in the sector is 48 expected to create strong cascading impact in the nascent affordable and green housing markets. IFC will also support the eco-system for affordable housing and green buildings. The WBG will complement work on housing to help in other areas to create urban footprints that are more green, livable, productive, and resilient. This will include support for (i) addressing select dimensions of Smart City proposals, such as electronic waste management, electric vehicles, and roof- top solar (Gujarat, Odisha and Maharashtra); (ii) mass rapid transit investments and transit-oriented development initiatives in mega and mid-sized cities and (iii) putting in place an enabling environment for green buildings. IFC advisory services will support PPP transactions for scaling up roof-top solar and efficient street lighting which will contribute to reduce GHG emissions. Urban knowledge platforms and the Lighthouse India initiative will facilitate policy dialogue, advocacy, and knowledge flows between states and cities in India and bring relevant global experience. Partnerships will be developed with in-country think tanks and capacity-building institutions, and relevant global good practices and experience will be brought in. The WBG will bring its range of lending and knowledge instruments to support national, state, and city governments to develop policies and implement programs in the urban sector. Through the new projects under preparation, the WBG is discussing innovative design, institutional, and financing approaches. These include setting up the first commuter rail company in Mumbai for urban transportation and the first corporatized water utility in Simla. CPF Objective Indicators Supplementary Progress WBG Program Indicators Indicator 1.2.1: Number of Milestone 1.2.1: Number of IBRD Financial Services people provided with participating ULBs reporting Ongoing improved living conditions12 increase in own source Capacity Building for Urban Development; in selected states/cities revenues Sustainable Urban Transport Project (Global Baseline (2018): 0 Baseline (2018): 0 Environment Fund (GEF) financed); Efficient and Target (2022): 800,000 Target (2022): 36 Sustainable City Bus Services Project; India Low- people (IBRD) Income Housing Finance; Madhya Pradesh (IBRD) Urban Development Project; Tamil Nadu Sustainable Urban Development Project; AP Baseline (2018):0 and Telangana Municipal Development Project; Target (2022): 1 million (ex- Uttarakhand Water Supply Program for Peri affordable housing) Urban Areas; Karnataka Urban Water Supply (IFC) Modernization Project Indicator 1.2.2: Number of Pipeline affordable/green housing India Smart Cities Program; National Urban units supported by IFC Green Mobility Scheme; Jharkhand Urban invested housing finance Development Project; Amaravati SCCD Project; companies and developers Mumbai Urban Transport Project 3; Shimla Baseline (2018): 0 Water Supply and Sewerage Service Delivery Target (2022): 1 million units Reform Development Policy Loan series (IFC) IBRD Knowledge Services 12Cumulative number of people living in urban areas that have been provided with access to improved services, housing, tenure, neighborhoods, public spaces, parks, resilience, and/or urban environment conditions, through the direct interventions of operations supported by the World Bank. ‘Improvement’ is defined as (a) providing access to a service to those who do not have it, and/or (b) improving the quality or reliability of a service. Services include any urban services delivered under a Social, Urban, Rural, and Resilience project or intervention—water supply, sanitation, sewerage, sidewalks, roads, and so on. (Source: Core Sector Indicators and Definitions, World Bank, 2014) 49 India Urban Platform Indicator 1.2.3: GHG emissions expected to be IFC reduced (metric tons/year) PPP for roof-top solar in Odisha and Gujarat; in cities supported by IFC PPP for affordable housing in Odisha; PPP for Baseline (2018):0 municipal healthcare network in Odisha; PPP Target (2022): 840,000 for energy efficient street lighting in Odisha, metric tons/year and Rajasthan; PPP for municipal waste (IFC) management in Odisha, Haridwar, Varanasi and Mathura (as part of the Clean Ganges program, in collaboration with World Bank); IFC Investments in green buildings; IFC solid waste management; IFC Cities program; and IFC Affordable housing investments Objective 1.3: Improve management systems for controlling air pollution Intervention Logic Air pollution has emerged as a key public health issue for India, with potentially significant constraints on its economic and social development objectives. Worsening exposure both outdoors and indoors to PM2.5, the most widely identified pollutant of concern, led to 1 in 6 deaths in 2016. More people die each year in India from illnesses exacerbated by air pollution than from HIV/AIDS, TB, malaria, and diarrheal diseases combined.13 It disproportionately impacts the poor as they are more likely to live and work in polluted environments and less able to get treatment or to cope with the economic shock to their household brought on by illness. Air pollution is identified as a key development challenge in the SCD, including because the livability of cities and agriculture productivity are adversely impacted by air pollution. Urban air pollution management is complex because a range of sectors and economic activities within and beyond city boundaries contribute to the problem. An airshed-based management approach that embraces several sectors, including residential, commercial, industry, energy, transport, and agriculture s well as various levels of government agencies over time, is needed. There is a need to promote cross-jurisdictional coordination to control pollution within an airshed. At the same time, institutional arrangements below state pollution control boards need to be established at the city level for improved decision making. There is lack of capacity among stakeholders to monitor and regulate enforcement of air quality standards, to adopt and finance clean technologies and processes. In addition to institutional and management challenges, greater efforts are required for adopting cleaner production technologies and processes across public sector entities (e.g. power plants and municipal landfills), private sector operations (e.g. industry and hotels), and households (biomass burning). Reducing air pollution is an increasing priority for the GoI. In December 2017, the Ministry of Environment, Forests, and Climate Change announced the National Clean Air Program (NCAP) to improve air quality across the country. Focused on about 100 cities where air pollution standards are not being met, the NCAP provides cities an overall framework for developing and implementing air quality management plans, with guidance on critical policies and tools. A High-level Task Force has been set up in the Prime Minister’s Office to coordinate actions on air pollution management relating to crop stubble burning in states neighboring Delhi. A special financial scheme was announced as part of the 2018 Union Budget to support the efforts of the governments of Haryana, Punjab, Uttar Pradesh, and 13GBD 2016 Risk Factors Collaborators. 2017. “Global, Regional, and National Comparative Risk Assessment of 84 Behavioural, Environmental and Occupational, and Metabolic Risks or Clusters of Risks, 1990–2016: A Systematic Analysis for the Global Burden of Disease Study 2016.” The Lancet 390: 1345–422. 50 the National Capital Territory of Delhi to subsidize cost of machinery required for in-situ management of crop residue, and thereby reduce air pollution from residue burning. Moreover, air pollution management is linked to India’s ambitious NDC targets on climate change. The World Bank Group is well positioned to provide support to tackle this challenge, with its convening power to bring together different sectors and levels of government. The WBG has worked on multi-sectoral projects to address air quality in a diverse set of countries. The WBGs commitment to climate change mitigation goals also provide a platform for the WBG to help national, state, and city governments to reduce air pollution. As a global knowledge broker the WBG can facilitate knowledge exchange across countries and cities. The Pollution Management and Environmental Health MDTF managed by the World Bank is supporting cities in China, Vietnam, South Africa and other countries to manage air pollution and can facilitate knowledge exchange. The WBG’s engagement with the government on air quality management is evolving. The WBG has engaged stakeholders in national and state governments and in the private sector and facilitated knowledge exchange events. A programmatic multi-sector ASA—the India Urban Air Quality Program— was initiated in 2017 and is now working with three cities/states. The ASA will also further the national- level dialogue on the NCAP, Natural Gas Policy, and agricultural emissions, as well as help fill research gaps in collaboration with Indian institutions. Finally, the ASA will help raise the profile of the agenda through media outreach. TA to support city/state and national-level will also be provided through the Pollution Management and Environmental Health Program and potentially other Trust Funds (TFs). Through ongoing and new projects in the energy, environment, and MSME sectors the WBG will contribute to reducing GHG emissions with improving air quality as a co-benefit. Going forward, the WBG will build the ongoing ASA program, and experiences with related projects. The WBG’s support will focus on three important areas: promoting institutional strengthening, policies and programs to promote adoption of cleaner technologies, and stakeholder capacity strengthening to manage air pollution. Because the WBG recently began its engagement on air pollution, results indicators are limited. These indicators will be updated at the PLR stage. The WBG will assist to implement policies and programs to increase adoption of cleaner technologies. The scope and design of these policies will be informed by the ongoing ASA and TF-supported activities, and their implementation will be supported through city-/state-level engagements. The multi-sector ASA will help improve knowledge and build consensus on institutional arrangements to support implementation of airshed approaches. Support for implementation of the identified institutional mechanisms through operations may be extended, where possible. IFC will lend to sustainable urban mobility companies that provide zero air pollution transport and continue to focus on working with urban municipalities to develop operating models for charging infrastructure to encourage faster adoption of electric vehicles through its advisory services. Furthermore, IFC promote green buildings and EDGE certification programs, as well as strengthen the adoption of efficient street lighting solutions in cities. WBG activities will also focus on strengthening capacity of regulators, implementing agencies, and financial institutions. Capacity building will focus on skills and systems to monitor air quality levels, provide inputs for preparation of airshed/city-level air quality actions plans based on robust source- apportionment studies and cost-benefit assessments of different interventions, and monitor the enforcement of these plans. It will also focus on capacity to appraise and finance, including leveraging private sector financing as well as adoption of cleaner technologies. The WBG will help assess capacity needs and support capacity strengthening through ongoing ASA and new lending operations. 51 CPF Objective Indicators Supplementary Progress WBG Program Indicators Indicator 1.3.1: Number of AQM plans Milestone 1.3.1: Volume of IBRD Financial Services under implementation by cities private sector finance Ongoing supported by the World Bank leveraged for cleaner Financing Energy Efficiency at SMEs Baseline: (2018): 0 technologies and processes Target: (2022): 3 Baseline: (2018): INR 1480 Pipeline (IBRD) million Urban Air Quality Support Operation Target: (2020): INR 3550 million IBRD Knowledge Services (IBRD) Ongoing India Urban Air Quality Improvement Program; and Pollution Management and Environmental Health TA Objective 1.4: Increase access to sustainable energy Intervention Logic With over 315 GW of installed capacity (as of May 2017) the Indian power system is among the largest in the world, but per capita consumption of electricity is less than one-third of the world average. Ensuring access to power remains a major GoI priority, even though India has made enormous progress in the past few years significantly reducing the estimated 240 million people that were not connected to the national electrical grid in 2016. Yet, disruptions in supply of electricity remains mainly due to heavily indebted state government-owned electricity distribution companies (Discoms). Total accrued financial losses by the state Discoms are estimated to be US$70 billion14. Improving management at Discoms to increase commercial orientation and management and accountability for performance is important. Providing sustainable electricity access to all is a national priority. Since 2013, the GoI has been implementing the 24x7 (Power for All) program to provide reliable electricity supply for all by 2019.Subsequently, in September 2017, a new program, Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya), was started to provide electricity connections to all unconnected households in rural and urban areas. Recognizing that the commercial performance of the Discoms is central to the issue of access, in 2015 a national program to support debt restructuring in return for financial and commercial turnaround of the Discoms—Ujjwal DISCOM Assurance Yojna —was launched. Further, the GoI is fully committed to promote and scale up renewable energy, and in its NDC, India aims to increase to 40 percent, the share of installed electric power capacity from non-fossil-fuel-based energy resources by 2030. This includes plans to quadruple the country’s (non-hydropower) renewable energy capacity to 175 GW by 2022. Energy efficiency is also a government priority and will be central to India achieving its NDCs. The SCD’s focus on pivoting toward resource efficient growth is aligned to the GoI’s objective and the WBG is well positioned to support given its extensive experience in the Indian electricity sector as well as global experience. The WBG has a corporate priority to support countries to address the challenges of climate change through private sector investment, lending, TA, and knowledge services. Further, bringing together various instruments of support from the World Bank, IFC, and MIGA will help to maximize finance for development of the Indian electricity sector. The WBG will strategically focus on three broad areas: increased access to reliable power for all citizens, scaling-up renewable energy generation, and promoting energy efficiency. Across all these 14 As per UDAY notifications issues by Ministry of Power, November 2015, and December 2017. 52 areas the WBG will deepen its support to achieve results by first strengthening the institutional capacity and governance of the power T&D utilities to achieve improvements in financial and operational performance and, second, by leveraging private finance for power sector development. Cross-sector analytical and policy support for addressing the electricity-water-agriculture nexus will be the priority area of the World Bank’s engagement, for not only addressing the financial sustainability of the electricity sector, but also for meeting the needs of the agriculture sector, while minimizing impacts on water resources. The World Bank will also actively support regional electricity trade, improved access, and the realization of national and regional economic benefit through this trade. Investing in renewables and energy efficiency will result in significant reduction in GHG emissions and climate benefits. The World Bank’s focus on reforms and institutional strengthening of Discoms will be key to increase access to reliable power. The World Bank is currently supporting the states of Andhra Pradesh, Rajasthan, and Jharkhand, and six northeastern states where anchor investments in transmission and distribution (T&D) infrastructure are enabling the World Bank to support improvements in the commercial and operational performance of the Discoms, while enabling wheeling and access to electricity for consumers. Further state level engagements are being discussed with the Ministry of Power, for the World Bank to partner with select Discoms to demonstrate different models of performance improvement and commercialization. At the same time, IFC will explore investments in T&D companies, where markets are already deregulated and privatized, in pre-privatization capital in T&D companies, and corporate loans or joint ventures with state-owned entities, and together with the World Bank will identify suitable states to test reform-linked investments to revitalize T&D companies.15 IFC through the Lighting Asia/India program (currently focused in Uttar Pradesh, Bihar, Rajasthan, Odisha, and Assam) will continue to work with the private sector to accelerate access to electricity by promoting modern off-grid lighting systems and efficient appliances in rural areas. Discom reform is another potential area for the WBG to apply its MFD approach to addressing key development gaps. The mobilization of affordable financing at scale will be critical for India meeting its renewable energy targets. The WBG will support the mobilization of commercial financing by leveraging its own resources to de-risk and underwrite commercial investments in renewable energy, investing in emerging technologies, and through analytical and advisory work to support the development of India’s renewable energy markets. Over the next five years, IFC will invest over US$1 billion into the renewables energy sector using a variety or innovative products such as green bonds, PPPs and financial intermediaries. IFC is also exploring investments in innovative financing vehicles to help attract yield seeking investors like pension funds and insurance companies to invest in the sector. The current portfolio supports advisory services and commercial investments in solar energy, solar parks, and solar rooftops in government, commercial, and industrial segments and market development in renewables (solar) through policy dialogue and strengthening key institutions. The ongoing Program for Results Grid-Connected Rooftop Solar Program, is a good example of market development and leveraging the private sector. Through the IFC's earlier successful demonstration of structuring bankable rooftop PPPs in Gujarat and Odisha followed by the World Bank's credit line to the State Bank of India leading to loans worth US$350 million sanctioned to seven companies for installations of 575 MW solar rooftops, the WBG kick-started the solar rooftop market. Further market development is in progress in 14 states where capacity building and handholding is underway. IFC is also collaborating with the GRPV team on its existing and potential rooftop solar PPP advisory projects. The WBG will provide TA to support the 15 A case in point for joint World Bank-IFC operation has been IFC’s engagement with Power Grid in 2012. The project was prepared by a joint World Bank-IFC team and enabled the World Bank Group to build upon a successful lending and capacity building relationship, and continue assisting Power Grid at a stage of its corporate development when it needed to rely more on its own financial performance and less on sovereign support. 53 integration of variable renewable energy with existing systems and markets. The significant increase in renewable energy will challenge existing grid and market operations and require additional investments in forecasting, balancing, market design for renewable energy integration, grid codes and regulatory development, and increased transmission infrastructure. Support will also be provided for next generation renewable technologies to address grid integration challenges through hybrid (wind-solar- storage), storage (wind-storage, solar-storage, or hybrid-storage), and floating solar photovoltaic projects and investments in other balancing technologies, including hydropower and gas. The WBG will seek to replicate the model of the Rewa Solar Park in Madhya Pradesh (see Box 3, main text) which entailed providing infrastructure loans to the state for evacuation infrastructure, while IFC provides tendering transaction advisory and raises private financing from capital markets. The WBG will expand support to the National Mission for Enhanced Energy Efficiency by developing policy frameworks, incentive structures, market mechanisms, and financing solutions for energy efficiency. The private sector ESCO-implemented energy efficiency projects in industry, buildings, and street lighting will be supported through partial credit guarantees under the ongoing Partial Risk Sharing Facility (PRSF) for Energy Efficiency, financed by the Climate Fund and GEF. IFC will provide finance and advisory services to energy or resource intensive companies, focusing on energy efficiency, and resource-efficient production and water solutions. Further support will be provided to scale up energy efficiency in residential and public sectors through financing and TA to the Energy Efficiency Services Limited (EESL). It will support EESL’s investment program for LED lights, street lights, and ceiling fans and strengthening its institutional capacity, enhancing access to commercial financing, and helping EESL transform the broader energy efficiency market in India. The World Bank will also facilitate knowledge exchanges to help scale up good practices across states and with other countries, such as the ongoing India-Saudi Arabia knowledge collaboration on energy efficiency. CPF Objective Indicators Supplementary Progress WBG Program Indicators Indicator 1.4.1: Energy wheeled Milestone 1.4.1: Total IBRD Financial Services through transmission system number of ESCO- Ongoing (GWh) implemented energy North Eastern Region Power System Baseline (2018): 76,170 GWh efficiency investments Improvement Project; Second Target (2022): 104,000 GWh whose loans received partial Programmatic Electricity Distribution (IBRD) credit guarantee from PRSF Reform Development Policy Loan for (managed by Small Rajasthan; 24x7 Power for All - Andhra Indicator 1.4.2: Power Generation Industries Development Pradesh; The Shared Infrastructure for - number of people/consumers Bank of India) Solar Parks Project; Grid-Connected reached through IFC investments Baseline (2017): 9 Rooftop Solar Program; Vishnugad Baseline (2017): 13 million Target (2020): 340 Pipalkoti Hydro Electric Project; Partial Target (2022): 31 million (IBRD) Risk Sharing Facility (PRSF) for Energy (IFC) Efficiency; INDIA - Financing Energy Milestone 1.4.2: Number of Efficiency at SMEs; Coal-Fired Generation Indicator 1.4.3: Total generation consumers with prepaid/ Rehabilitation; Fifth Power System capacity of RE (MW) smart meters Development Project; and India Energy Baseline (2017): 0 Baseline (2017): 45,665 Efficiency Scale Up Program; Target (2022): 2160 MW Target (2022): 350,000 (IBRD) (IBRD) Pipeline Jharkhand Power System Improvement Indicator 1.4.4: GHG emissions Project; Innovations in Hybrid and Solar expected to be reduced (metric Technologies Project; and Program to tons/year) Establish Pilots for Access through Baseline (2017): 0 Renewable Energy 54 Target (2022): 1.27 million (IBRD) IBRD Knowledge Services TA on Distribution Reforms, Variable Baseline (2017): 2.2 million Renewable Energy Integrations and Target (2022): 5 million Capacity Development on Solar Rooftops (IFC) IFC Investments in RE projects including wind, ground mounted solar, rooftop solar projects; IFC Lighting Asia (India); and IFC Energy and Water Efficiency with firms Objective 1.5: Improve disaster risk management Intervention Logic As a powerful emerging economy, India faces the challenge of sustaining rapid economic growth while lowering the GHG intensity of its growth and reducing the vulnerability of its large population and growing stock of infrastructure. India is highly vulnerable to the impact of climate change and related extreme events, including floods, cyclones, landslides, heatwaves, and droughts. The intensity and frequency of these events is likely to increase with climate change. The country has the largest number of people exposed to natural hazards (which also includes earthquakes) in the world (1.02 billion or 82 percent of the entire population). The estimated average annual economic loss from natural disasters is US$9.8 billion (UNISDR GAR 2015). While India is the fourth largest emitter of GHGs, it has among the lowest per capita emissions. India has placed a high commitment to address disaster risks and related challenges associated with climate change. The GoI’s National Disaster Management Plan (NDMP) provides the framework and direction for all phases of the disaster management cycle. Work on disaster risk management is complemented by the GoI’s expansive efforts to mitigate and adapt to climate change, evidenced by its National Action Plan on Climate Change and eight associated missions (see Box on WBG partnership with India in addressing climate change in the CPF main text). The GoI has identified several challenges which need to be addressed to improve disaster and climate resilience, including institutional capacity building, emergency preparedness, land use planning/enforcement, resilience of infrastructure, and generation and use of risk information. The SCD indicates that disaster and climate change-related risks could be mitigated through a more resource-efficient growth path that would enhance adaptive capacity. The WBG is well positioned to support the GoI in its efforts to strengthen institutional capacity for disaster risk reduction and emergency preparedness as well as support climate change adaptation and mitigation. Built on decades of experience in the country, the WBG is strategically positioned to identify specific vulnerabilities of the country and prioritize solutions to minimize the long-term impact of natural disasters and climate change. The WBG can leverage its global experience in supporting middle-income countries such as Mexico and Turkey to address similar challenges, as well as bringing cutting-edge global knowledge from countries such as Japan with vast experience in the field. Supporting India in its global leadership role in disaster risk reduction will be a priority area of the WBG’s engagement. India’s NDMP is consistent with the approaches promoted globally by the United Nations, particularly the priorities under the Sendai Framework for Disaster Risk Reduction 2015-2030: i) understanding disaster risk; ii) strengthening disaster risk governance to manage disaster risk; iii) investing in disaster risk reduction for resilience; and iv) enhancing disaster preparedness for effective response and to ‘Build Back Better’ in recovery, rehabilitation, and reconstruction. The WBG will 55 provide support for implementation of the NDMP. Assessing risks and incorporating disaster risk information into development planning will continue to be the centerpiece of the World Bank's engagement. The World Bank will provide support to the state- and local-level DRM institutions to build capacity and systems to manage emergencies. For making current and future investments risk-resilient, all ongoing and new projects will be aligned with the NDMP and focus on ensuring resilience of future infrastructure by improving design and construction standards and investing in risk reduction infrastructure to manage the risks of floods, cyclones, and earthquakes. Objective Indicators Supplementary Progress WBG Program Indicators Indicator 1.5.1: Milestone 1.5.1: Number of IBRD Financial Services Kilometers of rural roads state-level institutions with Ongoing rehabilitated and increased capacity for disaster National Cyclone Risk Mitigation Project I and improved up to resilient risk management Additional Financing; National Cyclone Risk standards to provide Baseline (2018): 0 Mitigation Phase II; Bihar: Kosi Flood Recovery rural connectivity Target (2022): 13 Project; Bihar Kosi Basin Development Project; Baseline (2018): 831 km (IBRD) Tamil Nadu and Puducherry Coastal Disaster Target (2022): 3,150 km Risk Reduction Project; Uttarakhand Disaster (IBRD) Milestone 1.5.2: Number of Recovery Project; Odisha Disaster Recovery market instruments designed Project; Jhelum and Tawi Flood Recovery Indicator 1.5.2: and implemented for climate Project; Andhra Pradesh Disaster Recovery Proportion of the change mitigation action Project; targeted coastal Baseline (2018): 2 (Perform population covered by Achieve and Trade scheme, Pipeline the early warning Renewable Energy Certificate Uttarakhand Disaster Recovery Project - dissemination systems mechanism designed) Additional Financing; Assam Flood, Erosion Baseline (2018): 0 Target (2022): 4 (2 additional and River Management Modernization Target (2022): 100% market instruments designed) Project; West Bengal Major Irrigation and (IBRD) (IBRD) Flood Management Project; Enhancing Coastal and Ocean Resource Efficiency Project; and Himachal Pradesh: Forests for Prosperity Project IBRD Knowledge Services Climate Mitigation Action Support, including the Partnership for Market Readiness to design market instruments for climate mitigation; Clean Cooking Initiative; and South Asia Water Initiative: Flood Management Information System in Bihar 56 Focus Area 2: Enhancing Competitiveness and Enabling Job Creation The WBG will support India to strengthen key enablers for job creation to meet the challenges of 13 million new persons entering the working age population every year and the need for greater inclusivity in employment, particularly for women. While Focus Area 1 includes growth enablers that will also contribute to jobs, Focus Area 2 focuses on particular aspects of competitiveness of India’s economy that are important for unshackling India’s firms. The SCD notes the importance of improving the business environment, strengthening skills, and building firm capabilities to achieve this task. The SCD further underscores the importance of facilitating broad participation. Correspondingly the WBG will support India’s efforts to: • Improve the business environment and select firm capabilities • Increase resilience of the financial sector and financial inclusion • Improve connectivity and logistics • Increase access to quality, market-relevant skills development • Enable access to more quality jobs for women Objective 2.1: Improve the business environment and select firm capabilities Intervention Logic India’s economy is disproportionately made up of small, informal, and unproductive firms that tend to stagnate over time. As noted in the SCD, by staying small, the majority of firms are less equipped to tap into finance and technology that drive innovation and productivity gains. These firm dynamics are an important hindrance to job creation. Addressing this issue requires interventions at the level of the business environment (policies and infrastructure), as well as those at the level of capabilities of firms. Greater ease of regulatory compliance will increase the incentives to formalize, as will factor market reforms—such as more flexible labor regulation. The possibility of gaining access to financial and technical support programs that help firms become more productive will strengthen incentives for firms to become formal. The GoI is working on reforms to make it easier, cheaper, and faster to do business in India. A strong enabling environment is characterized by low market entry and exit barriers; adequate access to land, capital, and labor; low barriers to trade and investment; and a general absence of distortive product and factor market regulations. India has adopted ambitious targets to reduce regulatory red tape and improve the business environment. The GoI has mounted an extensive program to reduce the regulatory burden through business process reengineering, policy reforms, and inspections reforms at both the federal and state levels. In particular, the GoI’s ongoing Ease of Doing Business Program, supported by the WBG, seeks to increase regulatory ease and predictability. The WBG will continue to support business regulatory environment reforms. The WBG will partner with governments at central and state levels to deepen policy and administrative reforms that help reduce unnecessary transaction costs, encourage formality, and create a more level playing field for small, medium, and large companies alike. The primary counterpart for the Ease of Doing Business reform agenda is the Department of Industrial Policy and Promotion (DIPP), and the WBG will provide TA for capacity building at relevant government institutions, benchmarking between states and promoting good regulatory practices (ASA). In addition, the WBG will advance the dialogue on distortions around factor and product markets, and it will develop the basis of a modern business regulatory framework through the testing and progressive introduction of regulatory impact assessments. It will also underpin this agenda through future state-level lending operations (DPFs or PforRs) in the context of strategic state partnerships. 57 The WBG will support GoI efforts to improve capabilities and entrepreneurship in select market segments. The WBG will partner at the central level with DIPP, the Ministry for Micro, Small and Medium Enterprises, and other specialized agencies responsible for developing firm capabilities. At the state level the WBG will continue its partnership with the Industries and MSMEs departments to improve the effectiveness of the institutional setup promoting start-ups, technology absorption and innovation, use of quality standards, and the development of managerial skills, with particular focus on strategic sectors where India has strong potential to be globally competitive. Through ongoing investment lending operations, the WBG will focus on upgrading and expanding the footprint of technology centers in India and in facilitating innovation in biopharmaceutical products and medical devices that address public health priorities. The WBG will also support the development of India’s tourism sector, focusing on issues of market access through improved visa administration; streamlining regulations and licensing and building permit procedures affecting sector expansion; aligning institutions and incentives to improve sector coordination and market development; strengthening basic services in and around tourism centers; and developing relevant skills and gender-sensitive economic linkages programs. This work will be supported through ASA and an investment lending operation in Uttar Pradesh with potential expansion to other states. In addition, the WBG expects to have an RAS on Start-Up India, and future ASA and lending operations addressing specific market barriers to firm development at the state level. The WBG will leverage its flagship publications (i) Trouble in the Making? The Future of Manufacturing-Led Development; and (ii) The innovation Paradox as entry points in the policy dialogue around the future of job creation and economic development. The WBG will also provide knowledge services to support the development of industrial infrastructure and service. The WBG will promote knowledge exchange within India and from around the world on economic zones and industrial infrastructure to address the land and infrastructure constraints. In keeping with the evolution of industrial zoning regimes, the WBG will focus on PPPs, where industrial infrastructure increasingly is developed and operated by the private sector. At the state level, ASA and potential lending operations will help address policy gaps and distortions, build regulatory capacity, and seek to crowd in more private investment in infrastructure and services. CPF Objective Indicators Supplementary WBG Program Progress Indicators Indicator 2.1.1: Doing Business Milestone 2.1.1: Number IBRD Financial Services composite measure of barriers of business environment Ongoing to competition and distortions: reforms implemented Technology Centers Systems Project; Innovate distance from frontier (frontier = in India for Inclusiveness; and MSME Growth Baseline (2017): 0 100) innovation and Inclusive Finance Project Target (2020): 20 Baseline (2017): 60.76 (IBRD & IFC) IBRD Knowledge Services Target (2022): 66.27 (IBRD & IFC) Milestone 2.1.2: Number Ongoing of technology centers or India Ease of Doing Business (with IFC) India Indicator 2.1.2: Number of technology transfer Insolvency (with IFC); State Policies and Firm individual enterprises accessing offices built Dynamics; Barriers to Internal Mobility; India services at technology centers Services Competitiveness; Maximizing Finance (annual) Baseline (2018): 0 for Sustainable Tourism Development; and Target (2020): 18 RAS for State Level Logistics Baseline (2017): 5,700 (IBRD) Target (2022): 6,900 (IBRD) 58 Objective 2.2: Increase resilience of the financial sector and financial inclusion Intervention Logic Continuing to improve access to finance is integral to India achieving sustained economic growth, inclusion, and elimination of poverty. The SCD and the 2017 FSAP note several key constraints to a deeper and more resilient financial sector. Issues include, among others, financial system yet to be made more efficient and effective, the need to address non-performing assets on banks’ balance sheets, a need for greater depth and penetration of financial markets, products, and services; and informality of the economy. The underdeveloped and over-directed financial sector constrains flows of finance to its most productive uses. Nonperforming loans hamper private credit which is lower in India compared to peer countries. Only 22 percent of the MSMEs access formal credit, largely due to the informality of the firms. There are still 400 million unbanked or underbanked people, primarily the poor in rural/remote locations. Inadequate long-term finance precludes the needed investments into infrastructure and housing. Addressing these challenges is critical because a well-performing financial sector is integral to (a) channeling capital to enlarge economic possibilities, particularly to the high-potential and socially critical sectors such as MSMEs or housing, (b) ensuring that the capital is efficiently used and leads to higher efficiency of using all other resources, and (c) extending the reach of financial inclusion across society to support equalization of growth opportunities for individuals. The GoI has initiated a number of policies and approaches toward improved access to finance by various segments of the population, for instance on financial inclusion, housing finance, and digitalization which are bearing positive results. The ‘Pradhan Mantri Jan-Dhan Yojana (PMJDY)’ national mission for financial inclusion and the Jan Dhan-Aadhaar-Mobile (JAM) initiative are particularly notable. The GoI is also pursuing important initiatives in the area of infrastructure finance, through the establishment of the National Infrastructure Investment Fund and the National Credit Guarantee Trust Company. Financial sector supervision is being strengthened, and plans are in motion to consolidate and recapitalize the banking sector, including the announcement in late 2017 to provide around US$32 billion of new capital to public sector banks. The WBG will maximize finance for development to support the GoI in its efforts to build a more diversified, resilient, and efficient financial system. The WBG will provide TA on unlocking infrastructure finance, expanding housing finance, financing of MSMEs, systemic design of provision of development finance, financial infrastructure (e.g., collateral registries to include movable assets), broadening credit reporting to capture individual credit data for SHGs and MSMEs including through expanding available data sources, insolvency and bankruptcy resolution, management of nonperforming assets, and financial sector supervision. Select investments by IFC and the World Bank, will also be targeted at supporting the government in addressing the systemic issue of stressed bank balance sheets which constrain bank financing for the real economy. In particular, theIFC will expand its Distressed Asset Recovery Program launched in 2015 to target larger corporate entities, including through support to the India Resurgence Fund which aims to leverage US$900 million for its own US$100 million investment. Finally, World Bank TA will also include the InfraSAP to identify binding constraints, both financial and nonfinancial, to deliver infrastructure sustainably and at scale. The WBG will support the development of credit products and provide financing to facilitate long- term funding to the underserved rural, MSME, infrastructure, and housing sectors. Through its lending, the WBG will address needs of particular borrower segments which are underserved and also critical for generating jobs. For example, in addition to the ongoing MSME support project which focuses on start-ups, young firms, and the manufacturing sector, all generating new jobs, the IFC will 59 promote disruptive solutions, continue its efforts to support the MFI space and ramp up its engagement in Fintech related activities, specialized financial institutions, and strengthen rural credit bureaus. The WBG will also seek to partner with other domestic financial institutions to expand financing channels, particularly for infrastructure and housing. The WBG will also partner with select states to apply market principles of lending, while crowding in the private financial sector and ensuring last mile access of financial products and services to the ultimate users, e.g. promoting Northeast states digital financial inclusion. Financial sector TA is expected to provide analytical underpinnings for design of financial and real sector operations. These activities are expected to increase the confidence of financial institutions to lend to key sectors such as infrastructure and MSMEs, by providing certainty of time bound resolution, providing consistent, predictable outcomes for secured lenders in the event of nonpayment by borrowers, and covering a broader range of potential borrowers in the credit reporting system. The efforts should seek to increase a share of nonbank/market financing in the overall financing mix for the target segments. The WBG will continue to create markets to increase financial inclusion. Support at the national and subnational levels will be targeted at expanding access to a diverse suite of financial services and its usage, with specific focus on rural areas, micro-entrepreneurs, women, and farmers. The WBG will mainstream disruptive technologies, fintech, and e-platforms to support India in leapfrogging forward to use these technologies to benefit the poor. Advisory services will support initiatives which leverage innovations in digital financial technologies and digitization of government-to-person payments. TA will support financial structures to incentivize start-ups and scale-ups at national and state levels as well as providing of support services such as accelerators and boot camp providers. The WBG will continue to partner in efforts to bring the underbanked and unbanked population into the financial system. It will continue to support private sector commercial banks to downscaling, to be more efficient and effective in assisting enterprises to become formalized and grow in size to create more stable, high-paid jobs. Leveraging on its success in the development of the Masala Bond market, IFC will continue to explore market and product innovations to further strengthening and developing the domestic capital market to mobilize domestic savings. While continuing its nationwide support to develop microfinance institutions, and standards IFC will pay special attention to build and strengthen more specialized market institutions (such as specialized non-banking financial companies and insurance companies), to increase the variety and sophistication of financial products, particularly those which target helping low-productive firms reach economies of scale and give better options for the poor to save and invest. Finally, IFC will work with like-minded, credible partners to use financial intermediation as a tool to address issues such as gender inequality, SCS, affordable housing, and climate change, since such challenges impact the poor far more adversely than they do the general population. CPF Objective Indicators Supplementary WBG Program Progress Indicators Indicator 2.2.1: Number of Milestone 2.2.1: Average IBRD Financial Services people reached with financial time for processing credit Ongoing services for startups MSME Growth Innovation and Inclusive Baseline (2017): 22 million Baseline (Jun 2017): 2.89 Finance; Low Income Housing Finance; and Target: (2022): 94 million months Uttar Pradesh Pro-Poor Tourism Development (IFC) Target (2020): 1 month Project (IBRD) Indicator 2.2.2: Number of SMEs Pipeline reached with financial services NIIF/Credit Enhancement Fund Support Baseline (2017) 0.4 million 60 Target: (2022) 0.6 million IBRD Knowledge Services (IFC) Infrastructure Finance Sectoral Assessment and state’s role and development finance Indicator 2.2.3: Value of funds released through improved IFC insolvency and bankruptcy Digital financial inclusion; Banking on Women resolution regime and programs. Program; IFC MFI/ Small Finance Bank Baseline (2018): 0 transformation; SME transformation programs Target (2022): US$500 million with Banks and NBFCs; Very small and early (IFC) stage/ start-up banking AS support; Agri- finance advisory services and value chain financing advisory; Insolvency advisory; Distressed Asset Recovery Program (DARP) Objective 2.3: Improve connectivity and logistics Intervention Logic India’s logistics and connectivity infrastructure struggles to keep pace with the country’s needs, creating a drag on competitiveness and growth prospects. The country’s supply of transport infrastructure is growing at 2–3 percent annually while increase in demand is about 10 percent. Overdependence on surface transport, particularly on highways (more than 70 percent of freight is carried on roads), leads to congestion as well as safety and air pollution challenges. The average speed of movement of domestic freight is only about 250 km/day by roads and 20 km/hour by rail, which is half or less than the daily/hourly average in other BRICS countries. Moreover, logistics remains a key challenge for economic growth and increasing competition, with 10-15% of product costs attributed to logistics. At the same time, the diversity of supply chain actors at the national, state, and local levels as well as a huge unorganized sector add to the difficulty of improving connectivity. The SCD notes that India’s greater domestic and global integration are essential to accelerating inclusion, creating good jobs, and in helping firms to grow and become more productive. To build well-integrated markets and connect to the global economy, India needs to develop a high-quality, low-cost modern logistics system with an improved and better utilized transport network that is aligned with its industrial development objectives such as Make in India. The GoI recognizes the urgency for addressing connectivity constraints. The GoI has designated the Ministry of Industry and Commerce to lead the logistic agenda and formulate policies and programs in active collaboration with other infrastructure ministries while the Ministry of Transport has launched several initiatives such as the logistic efficiency enhancement program; the integrated logistics and economic corridor development in its newly formulated Bharatmala program; and a recent multimodal logistic park development program in partnership with states. The WBG will support GoI efforts to improve connectivity in three areas. First, it will continue support for transportation infrastructure, improving national and state highway systems, with greater emphasis on sustainable and market-oriented institutional structures and asset management strategies to improve climate and disaster resilience as well as combine infrastructure with operations and other services, and development of economic corridors. Second, the WBG will intensify support for multi- modal transport support, including promoting the modal shift from highways to railways and waterways, promoting integrated multi-modal transport, and setting up multi-modal transport corridors. Third, it will support logistics supply chain Infrastructure, including investments in multi- modal transport corridors, multi modal logistic parks, inland container depots and warehouses, as well as logistics services which improve the efficiency of goods and people’s movement. which are also highly amenable to private sector investment and engagement. The WBG would explore opportunities 61 to set up such logistic facilities by leveraging its engagement in the development corridor projects such as the Eastern Dedicated Freight corridor and National Waterway 1 and multi-modal logistic parks such as the Varanasi Freight Village. In pursuit of these objectives, the WBG will prioritize leveraging of private sector financing. This will include efforts to strengthen the framework for private sector participation through innovative contracting such as hybrid annuity or other forms of PPP and risk mitigation/credit enhancement instruments, such as guarantees as proposed for the Rajasthan State Highway Development Project or development and operation of logistic facilities, e.g. Varanasi Freight Village. World Bank activities like National Waterway 1 and Varanasi Freight Village will also on a case-by-case basis promote more commercially oriented entities (special purpose vehicles) that will provide a platform for tapping into private financing and expertise. IFC through a programmatic engagement with national Ministry of Shipping and the Inland Waterways Authority will mobilize private sector entry into riverine transport, on the Ganges (as National Waterway 1). A first transaction for river terminals at Kolkata and Patna was awarded last year, and IFC has subsequently been mandated for two more PPP terminal transactions. IFC will continue to deepen and broaden the Masala bond market, attracting international investment in the infrastructure sector. IFC will consider investments in (i) projects that improve the availability of transportation infrastructure including airports, port terminals, roads and other assets that increase the throughput of goods and people transport (ii) logistics services which improve the efficiency of transportation and (iii) open up additional avenues of accessing finance (e.g. through capital markets) over traditional bank finance. IFC will also explore ways to support the GoI's efforts to address the digital divide by supporting efficient service delivery platforms. The WBG will also support improvements in governments’ institutional capability. Support to operations and policy dialogue at the central level will focus on enhancing the coordination of infrastructure investment, policy reforms, and dialogue among the ministries, regulatory agencies, and private sector operators. The WBG will support the government in setting up performance monitoring indicators to inform policy. State level indicators, once developed, are intended to highlight ways to improve logistics performance of specific parts of the country through policy reform and/or investments under the responsibility of the states and/ or the federal government. In addition, a more robust set of indictors to monitor performance in providing for connectivity and logistics at the state level is expected to inform policy making and future investment decisions and foster the coordination among ministries and stakeholders, in particular, private sector operators. The WBG will facilitate more knowledge exchange to disseminate innovative and impactful reforms among states and between the state and national level. The WBG will harness competitive federalism among states to encourage better performance in improving connectivity and logistics, building on the experience of supporting state-level reforms in the business environment. The WBG’s national and state highway programs will focus on capturing knowledge on what works well in particular states in terms of policy, institutions, and improving integration between the transport network and logistics, and on disseminating this information across the country under the Lighthouse India program. To facilitate and ensure a greater impact of knowledge exchange, the WBG will partner with relevant private sector associations such as the Federation of Indian Chambers of Commerce & Industry, the Confederation of Indian Industry, and professional associations and academic institutions. 62 CPF Objective Indicators Supplementary Progress WBG Program Indicators Indicator 2.3.1: Percentage Milestone 2.3.1: Number of IBRD Financial Services of core rural road network states who have set up an Ongoing in good condition16 improved17 transport Assam State Roads Project; Andhra Pradesh and Baseline (2018): 64% performance monitoring Telangana Road Sector Project; Sustainable Target (2021): 68% system Urban Transport Project (GEF); Second Karnataka (IBRD) Baseline (2018): None State Highway Improvement Project; Eastern Target (2022): 5 states Dedicated Freight Corridor I, II, and III; Second Indicator 2.3.2: Freight (IBRD) Gujarat State Highway Project; National traffic carried on Eastern Highways Inter-Conn; NHAI Technical Assistance Dedicated Freight Corridor Milestone 2.3.2: Private Project; PMGSY Rural Roads Project; Rajasthan III sector financing mobilized Road Sector Modernization; Kerala State Baseline (2017): 0 for transport and logistic Transport Project II; Efficient and Sustainable Target (2022): 22 billion net facilities City Bus Service; Tamil Nadu Roads II; Mizoram ton km per year Baseline (2018): 0 State Roads II- Reg Connectivity; Capacity (IBRD) Target (2022): US$685 Augmentation of National Waterway 1; and million Bihar Rural Roads. Indicator 2.3.3: Number of (IBRD) multi-modal logistic centers Pipeline established Varanasi Freight Village; UP core road network Baseline (2018): 0 development program; Rajasthan State Improvement (2022): 3 Highways Dev Program II; Assam Inland Water (IBRD) Transport Project; Mumbai Urban Transport Project 3; Himachal Pradesh State Roads Transformation Program; and West Bengal Transport and Logistics Improvement Project IBRD Knowledge Services RAS: State-level Logistics Performance Indicators IFC PPP transaction for river terminals; Mobilizing private sector entry into riverine transport, on Ganges; Logistics/supply chain diagnostics; Transaction advisory by PPP for Delhi Mumbai Industrial Corridor (DMIC) and PPP on DMIC; Investment transactions in roads, other transportation infrastructure and logistics companies 16 Core rural roads network comprises 1.1 million km out of the total 4.6 million km of rural roads. Good condition is with a pavement condition index rating of greater than 2 using Pradhan Mantri Gram Sadak Yojana (PMGSY) methodology. 17 The objective is to build an integrated monitoring system to measure performance across several indicators using: (a) existing, readily available data sources; (b) data from primary sources (for example, data from logistics operators); and (c) surveys (based on LPI questionnaire), currently available statistical information (for example, customs, industry, ports, and operators) and state- level dashboards (for example Ease of Doing Business). The World Bank has direct experience in conducting the surveys and developing the models proposed. 63 Objective 2.4: Increase access to quality, market-relevant skills development Intervention Logic India is experiencing major shifts in its labor force from agriculture to the service and manufacturing sectors, which in turn affects the skills mix required by the labor market. India faces an acute need for improved skills in its labor force, with nearly two-thirds of firms reporting difficulty finding qualified employees and nearly half of all employers having unfilled job vacancies due to talent shortages (South Asia companion piece to the World Bank’s World Development Report on Education). Requirements for a more and differently skilled workforce are set to grow as work is disrupted by rapid technological change. The SCD highlights the need to upgrade India’s human capital by encouraging smart investments to equalize opportunities for populations and regions for addressing depleted talent pools and labor shortages in high-skilled jobs and investing in skills that drive up salaries. Linkages among skills development (SD) programs, market demand, and worker preferences need to be strengthened. Publicly funded SD programs are often not adequately connected with employers and industry standards, thereby reducing their market relevance. Limited involvement of sub-national governments in SD programs, so far, has led to poor monitoring and limited responsiveness to the local needs of the labor market. Availability of training remains a challenge: only about 4.69 percent of the total workforce in India have undergone formal skill training. The target is to skill 400 million new and existing workers by 2022, while the existing capacity for skilling programs offers opportunities for about 7 million individuals in any given year18. Dropouts, especially among vulnerable and minority youth populations, need combined education and skills training to make them successful in finding work or pursuing further education, with better coordinated certification frameworks. Institutional coordination among some 20 ministries involved in SD could also be improved as well as with consistent application of, the National Skills Qualification Framework (NSQF). These programs also do not get captured in the national Labor Market Information System (LMIS). SD sector issues have been compounded by a lack of capacity at training centers and frequent poor quality of SD programs offered by private training partners, with insufficient quality assurance. Finally, there is a challenge in providing access to SD programs across population groups in terms of socioeconomic background, gender, and location (rural versus urban). The GoI in its new National Policy for Skills Development and Entrepreneurship (2015) seeks to address these deficiencies through making quality skills training aspirational for both youth and employers, with a focus on occupational standards and developing outcome-based, market-relevant approaches and strengthened national and state delivery mechanisms supported by robust Management Information System for demand and supply projections. Through a suite of operations which have been initiated in the past eighteen months, the World Bank Group will address the mismatches between programs, market demand, and worker preferences while supporting the GoI’s push to increase the volume and quality of skills training . World Bank operations supporting the Skill India Mission Operation (SANKALP), industrial skills training (Skills Strengthening for Industrial Value Enhancement, STRIVE), and training for vulnerable segments of the population (Nai Manzil) will focus on (i) expanding the involvement of the private sector in curriculum development as well as seeking to leverage private financing for skills training; (ii) strengthening institutional mechanisms for improved SD policies, national qualification frameworks, and quality assurance mechanisms; and (iii) strengthening capacity to finance, deliver, evaluate, train, and accredit SD programs at national and state levels to improve skills and placement of trainees, especially women 18 National Policy for Skill Development and Entrepreneurship 2015, Government of India 64 and disadvantaged sections (including minorities), in the labor force. World Bank-financed operations will aim to ensure female participation in SD programs at 33 percent (above the FLFP rate of 27 percent) although the baseline will be set once monitoring systems are adequate to track these figures across the large number of SD programs. IFC will tackle issues of market failure in SD and jobs though investments in leading private sector SD companies, working with such companies to improve the quality of their SD programs to increase market acceptability and through expanding digital capabilities in vocational training and skilling. The WBG will seek to leverage the private sector more fully to develop market-relevant SD systems. Market relevance will be ensured through preparation and adoption of training packages that are aligned to the National Skills Qualifications Framework (NSQF), which are approved by a council that has representatives from the private sector. Private sector led Sector Skills Councils (SSCs) have limited funds for sustainability and effective functioning; the World Bank projects deepen the efforts of such industry-led bodies for SD through resource enhancement. Through SANKALP, the World Bank is supporting a Skills Fund to tap into available corporate social responsibility funds. IFC will also continue to explore ways to support innovative public-private collaboration, in coordination with the National Skills Development Corporation (NSDC). The WBG will accord priority attention to strengthening public sector institutions and convergence in the public sector. In partnership with the newly created Ministry of Skills Development and Entrepreneurship, the World Bank will support the strengthening of public institutions like the National Skills Development Agency and the National Council for Vocational Education and Training in being responsive to employer demands through the preparation and adoption of training packages that are market relevant and aligned to the NSQF. Robust M&E systems, through the creation of an LMIS, will help precisely track demand and supply requirements. The development of a globally competitive manufacturing sector in India requires creating a cadre of comprehensively skilled technicians. The World Bank will support quality vocational training through performance-led Industrial Training Institutes (ITIs). The World Bank will also support improved completion of secondary education and market-driven skills training for youth from minority communities through skilling with open-based education through the National Institute of Open Schooling. The WBG will support a differentiated approach to SD within states, which in turn builds on the incentives generated by India’s competitive federalism. The World Bank programs support state- specific, tailor-made interventions such as establishment of priority ITIs through consolidation and rationalization of trades at strategically located ITIs and supporting state-specific skills policies. There is special focus on incentivizing states through State Incentive Grants that grade and incentivize states and institutions for improved institutional strengthening (functional State Skills Development Missions) as well as market-driven efforts through effective coordination with national and state skills councils, especially to factor in the needs of disadvantaged populations, including young girls and women, scheduled castes and tribes, and minority youth. World Bank projects will support results-based financing for states and ITIs as an optimal way to improve capacities and performance of the skills training ecosystem. The WBG will promote India as a knowledge hub for SD. The World Bank will assist India in sharing its SD knowledge base with African countries through the Lighthouse India program that aims to transfer India’s knowledge base and expertise in SD through helping African countries formulate and implement effective SD programs to produce market-relevant skilled labor as per industry demand in Africa. Innovative initiatives at the state level and with the private sector will be shared through knowledge tools like skills portals and outreach efforts to employers and workers. 65 CPF Objective Indicators Supplementary Progress WBG Program Indicators Indicator 2.4.1: Number of Milestone 2.4.1: Number of IBRD Financial Services trainees who have NSQF aligned qualification packs Ongoing successfully completed the translated into teaching- Skill India Mission Operation (SANKALP); National Skills Qualification learning materials STRIVE Operation; Nai Manzil - Education Framework (NSQF) aligned, Baseline (2017): None and Skills Training for Minorities Project; market-relevant, short- Target (2021): 1,000 India: Vocational Training Improvement term skills development (IBRD) Project; Technical Education Quality programs and other Improvement Project (TEQIP) III; nationally recognized Milestone 2.4.2: Improved Uttarakhand Workforce Development programs and were performance of states on certified19 Project institutional strengthening, Baseline (2017): 1 million market relevance of skills Of which female trainees: IBRD Knowledge Services development programs, and 0.32 million (estimate) India: Skills Development: TA for Enhancing access to and completion of Target (2022): 14 million Quality Assurance, Market Relevance and training by marginalized Of which female trainees: populations M&E Systems (Korea World Bank Group 4.7 million Baseline (2017): None Partnership Facility Trust Fund); Preparing (IBRD) Target (2021): At least 5 states Early Care Givers and Creche Workers for participating in Skill India Mission Supporting Sustained Women’s Indicator 2.4.2: Percentage Operation (SANKALP) have Participation in the Labor Force; Skills increase in the number of improved their State Incentive Programmatic Task; and Lighthouse India- graduates from ITIs that Grant scores by 15 points over India Africa Partnership on Skills have signed performance- the previous year Development based grant agreements (IBRD) under the STRIVE program IFC Baseline (2017): 0 Milestone 2.4.3: Number of IFC will engage and invest in private sector Target (2022): 20% states conducting tracer surveys entities and PPPs that provide skills (IBRD) of graduates development Baseline (2017): None Target (2021): At least 7 states have conducted tracer surveys of graduates of government ITIs (IBRD) 19Market-relevant, upgraded SD programs are SD programs approved by the National Skills Qualifications Committee, or programs that result in a certification by an SSC or the National Skills Certification Board. Numbers include those trained through central and state SD programs as reported in the LMIS. 66 Objective 2.5: Enabling access to more quality jobs for women Intervention Logic India’s low female labor force participation (FLFP) rate of 27 percent is a challenge to the country’s competitiveness. The International Monetary Fund (IMF) data suggests that if female employment were brought on par with male employment in India, the nation’s GDP would expand by as much as 27 percent. Greater involvement from women in the labor force also has a significant social impact—paid employment is known to increase women’s agency and empowerment20. In addition to the socioeconomic benefits of increasing the number of jobs for women, better quality of jobs for women is also linked to improved business performance and stronger economic growth, with quality entailing pay parity, promotion opportunities, and an enabling environment that encourages retention of female employees, such as supportive work schedules and childcare policies. Female economic empowerment has been undermined by relatively low access to finance. For financial institutions, weaknesses in understanding how best to tap into the women’s market coupled with the heterogeneity of this market has contributed to financing gaps; according to one study, there is a US$158 billion financing gap for women-owned MSMEs21. There is increasing awareness of women’s role in increasing private sector competitiveness, with more companies seeking to recruit, retain, and promote women and create deeper access to the women’s market. Low FLFP and limited economic empowerment among women are due to several factors. Causes are the large amount of unpaid care and housework that women perform (even when not in the formal workforce), the role of caregiving in women’s employment outcomes social norms, the lack of job creation that attracts women. FLFP declines strongly along the rural-urban gradation. The GoI prioritizes participation in the labor force as well as creation of employment and entrepreneurship opportunities for women. This is reflected through supportive regulations such as the Maternity Benefits Act 2017 and Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act 2013, streamlined focus on women entrepreneurs through the PM Mudra Yojana and several such initiatives. The World Bank will seek to use its policy and analytical expertise, combined with IFC’s strong experience in working with the private sector to create markets in India, and its ability to leverage global knowledge and experience to support the GoI’s efforts to generate more quality jobs for women. IFC will partner with private sector companies to enhance women’s participation in the labor force by working with them to demonstrate the business case for investing in women. This will include building peer partnerships to demonstrate best practices for hiring, retaining and promoting women. The World Bank will continue its Skill India Mission Operation (SIMO) which supports the Government’s Skill Development strategy, provide childcare-related investment and advisory services (including with MSMEs) and deploy employment-related tools, trainings and research. The IFC will also support increased investments in women-operated and women owned SMEs and rural enterprises with improved access to financial services. The WBG promote the development of women-centric business propositions to increase access to financial and non-financial services for women and women- owned MSMEs and leveraging SHG platforms. The World Bank’s livelihoods portfolio will continue to assist women beneficiaries in achieving scalability, increased diversification in production and improved access to markets and jobs in select farm/non-farm sectors, while new operations will focus on strengthening female entrepreneurship and women’s access to jobs. Improving access to finance for women-centric 20 World Bank 2011 and 2012 21 IFC 2014 67 businesses may facilitate the creation of jobs for women. This will include programmatic work on Banking on women, WBG-SIDBI MSME Project, SHG credit reporting program, women’s entrepreneurship trainings and gender lens investing. Programmatic work on Lighting Asia, agri- competitiveness projects and corporate governance will further highlight ways to deepen quality jobs by working with women as distributors, entrepreneurs and consumers. The WBG will further work on ensuring equity through projects to create economic opportunities for women. Analytical work and knowledge products that embed gender into the design of projects and seek data to demonstrate their viability (such as the Low-Income Housing Finance Project and the Agriculture Risk Insurance Project) will provide insights into informal and unregulated sectors. The World Bank’s Gender Platform, Lighthouse India Initiative, and the Urban Knowledge Platform will contribute toward understanding the constraints that impact women in work spaces, both formal and informal, and testing the scalability and replicability of new knowledge on enabling access to more and better jobs. Internal knowledge platforms will be created in sync with the CPF timeline to generate and exchange knowledge, push frontiers, and engender the WBG portfolio in India. The WBG will also deepen the awareness of GoI policies that support this objective (e.g. the Maternity Benefits Amendment Act 2017) through analytical work, focusing on ensuring effective implementation of labor laws and policies to provide safe working spaces for women. CPF Objective Indicators Supplementary Progress WBG Program Indicators Indicator 2.5.1: Number of Milestone 2.5.1: Number of IBRD Financial Services IFC clients who achieve a companies working on Ongoing 20% increase in jobs for recruitment, retention and Skill India Mission Operation; national and women promotion of women state level rural livelihoods and Baseline: (2018): 0 Baseline (2018): 0 transformation projects; Low Income Housing Target (2022): 5 Target (2022): 20 (Direct Finance Project; UP pro poor tourism (IFC) engagements with 5 IFC clients development; and Tejaswini: Socioeconomic and peer partnerships with 15 Empowerment of Adolescent Girls and Young Indicator 2.5.2: Increased companies Women access to financial services (IFC) for women and women- IBRD Knowledge Services owned MSMEs (as Milestone 2.5.2: Number of Gender Platform; Social Observatory for Rural measured by value of loans women entrepreneurs Food and Nutrition Security in Livelihoods outstanding to women reached with services Projects; Impact evaluations of Jeevika Multi- Baseline (2016): US$280 provided by World Bank- sectoral Convergence Initiative in Bihar; and million financed operations Impact of Social Accountability Interventions Target (2022): US$682 Baseline (2018): 0 on Healthcare Delivery and Outcomes in million Target (2020): 18,000 Uttar Pradesh Social Inclusion (IFC) (IBRD) IFC Childcare-related investment and advisory support; Credit gap assessment of women- led/owned MSMEs report; Mini-MBA for women entrepreneurs; Banking on Women credit line; Women’s Employment Program; Lighting Asia (India); and Health PPP Projects 68 Focus Area 3: Investing in Human Capital The WBG will support India’s development of human capital with a relatively stronger focus on improving the quality of services while continuing to support efforts to ensure access to key services. The approach recognizes India’s significant strides in making basic education and health services broadly available, but that quality of service lags as evidenced by persistent poor human development outcomes. The four ‘Hows’, particularly strengthening public sector institutions, will be critical to achieving these objectives. Under this focus area the WBG will seek to: • Enhance investment in the early years of children’s development • Improve the quality of education in schools and colleges • Increase access to improved rural water supply and sanitation services • Improve the quality of health service delivery and financing as well as access to quality healthcare • Improve the coverage and coordination of social protection systems Objective 3.1: Enhance investment in the early years of children’s development Intervention Logic Investing in the early years of a child’s life is one of the most effective long -term development strategies. This includes both direct and indirect investments from conception until children entering school, including nutritional, cognitive, and socioemotional capacities to learn, innovate, and compete. Evidence from a range of countries suggests that early nutrition programs can raise adult wages by between 5 percent and 50 percent depending on the setting22 Similarly, ECE has marked economic returns. It has been estimated that a INR 1 invested in two years of ECE yields a return of INR 25. India has made impressive progress over the past 20 years, but challenges remain. Maternal mortality has declined almost 60 percent since 1997-98 and the incidence of child stunting, or low height-for- age, has reduced by one-third between 1992-92 and 2013-14. Yet, stunting still affects 38 percent of under-5 children and 51 percent of children from poor households. Primary school enrollment in India has been nearly universal for a decade. The Gross Enrollment Ratio (GER) for all persons in elementary education increased from 81.6% in 2000-01 to 96.9% in 2015-16 (MHRD data). Evidence of learning in school, even from young ages, points to the need to strengthen education systems. The Annual Status of Education Report for 2016 shows that only 13 percent of rural children in grade 2 can read at the expected level in 2016. The challenges to improving the effectiveness of investments in the early years fall into three categories: availability, coordination of services, and household behavior change. (a) Availability of nutrition and childhood development services. The national ICDS Program is one of the earliest and the world’s largest early childhood development program. It is mandated to provide health, nutrition, ECE, and childcare and safety in an integrated manner, but due to institutional constraints and limitations the scheme has focused primarily on immunizations and nutrition. There are limited early learning and stimulation interventions for children under 3. Less than 17 percent of government schools provide one or two years of pre-primary education, and private sector provision of ECE, while rapidly growing, is fragmented and quality is uncertain. (b) Coordination and integration of services. The value of investments in young children is maximized when the necessary investments are integrated. However, while ICDS provides nutritional support to the vulnerable in some districts, these do not always coincide with areas of focus for other agencies with respect to hygiene and ECE interventions. 22Shekhar, Meera et. al. 2016. An Investment Framework for Nutrition: Reaching the Global Targets for Stunting, Anemia, Breastfeeding and Wasting. Washington DC: World Bank. 69 In addition, there are multiple ministries responsible for different aspects of ECE. (c) Household behavior change. Household behavior must incorporate the practices necessary to ensure the health and wellbeing of young children. Unfortunately, maternal, infant, and young children feeding practices are inconsistent. Similarly, household sanitation and hygiene practices and health seeking behaviors need improvement. These challenges are underscored in the SCD. This objective directly supports the GoI’s commitment to achieve the SDGs related to nutrition and ECE. In particular, the objective addresses SDG 2.2, ending malnutrition by 2030, reaching international targets for stunting and wasting for children under 5 and addressing nutritional needs of adolescent girls and pregnant and lactating women (PLW). The objective also addresses SDG 4.2, ensuring all girls and boys have access to quality early childhood development by 2030. World Bank support will complement the government’s recently announced National Nutrition Mission as well as the National Early Childhood Care and Education policy. IFC will continue to explore opportunities for supporting innovative ECE providers that can disseminate innovative pedagogical practices in the local market. During the CPF period, World Bank activities will focus on: (a) improving the coverage and quality of ICDS nutrition services to PLW and children under age 3; (b) improving the design of ECE assessment tools and curriculum; (c) fostering better integration and coordination of services at the state level; and (d) analysis of constraints to improved services and sharing learning from innovations in India and internationally. The WBG will continue to partner at both the central and state level using both lending operations and TA and ASA. Focused attention will be provided to one or two states emphasizing a coordinated approach to early years services. • Coverage and quality of ICDS nutrition services. The ICDS System Strengthening and Nutrition Project and its extension, the National Nutrition Mission Project, will expand coverage to all states and union territories of India, developing the systems and capacities linked with greater community engagement to ensure greater focus on children under 3 years and PLW women. The projects will also strengthen convergent actions required for convergent nutrition action plans at the state, district, and block levels. There will be a focus on behavior change and communication together with M&E systems to inform policy making, consistent with the new National Nutrition Mission. • Design of ECE assessment tools and curriculum. Through TA provided to five states and union territories including Jharkhand, Maharashtra, the National Capital Territory of Delhi, Rajasthan, and Sikkim, the WBG will support piloting innovative models for ECE provision. These will be based on co-locating ICDS centers at government schools where possible, developing appropriate training and learning materials, providing teacher training, and utilizing innovative assessment tools to support children. The TA is expected to help states and the center move toward large scale implementation of the broad directions in the national ECCE policy. • Integration and coordination of services. The WBG will work to support the integration and coordination of services through several related activities. First, integration components will be included in the National Nutrition Mission Project and through state-specific projects such as the Bihar Transformative Development Project which seeks to improve access to and use of nutrition and sanitation services through SHGs under the Jeevika Program. Second, several multi-sectoral engagements have significant nutrition-relevant elements which will be leveraged. These include the national Swachh Bharat Mission Support Operation and state rural water supply and sanitation (RWSS) projects, the National Rural Livelihoods Mission Project and the SP projects in Bihar and Jharkhand. State dialogue, TA, and possibly future operational support in one or two focus states will be initiated during the CPF period to deepen the coordinated provision of services at the state level that can provide lessons for future integration. 70 • Analysis of constraints and sharing knowledge. While key actions and services to improve child nutrition and provide effective ECE are well known, the implementation modalities, governance, and administrative aspects applicable to local conditions require greater understanding. The WBG will support analysis and knowledge sharing across states and with the center to address these gaps. The Investing in Early Years (IEY) programmatic ASA will bring together several analytic tasks to better understand local strategies for improving nutrition and ECE, including a focus on the Northeastern states and an integration of at-scale food fortification. Several impact evaluations will provide evidence for ongoing innovations, including the Jeevika multi-sectoral convergence initiative being scaled up in Bihar, an evaluation of a pilot in Madhya Pradesh combining a creche within ICDS centers, and an evaluation of early childhood development initiatives piloted in Odisha. The collective lessons from these initiatives will be shared and disseminated with states and the center on an ongoing basis, together with evidence from successful international innovations such as Peru’s success in reducing stunting through a comprehensive nutrition strategy. IFC will continue to disseminate the lessons learned from “Tackling Childcare”, making a relevant link to investments by promoting cross-border expansion of international childcare groups with potential for bring best practices to the Indian market, as well as continue to support local providers through investment projects aiming to promote market consolidation and pedagogic innovation. CPF Objective Indicators Supplementary Progress WBG Program Indicators Indicator 3.1.1: Percentage Milestone 3.1.1: Percentage of IBRD Financial Services of children ages 6-23 Anganwadi workers who meet at Ongoing months receiving age- least 60% of their targeted number ICDS System Strengthening and appropriate foods23 in of home visits to PLW and children Nutrition Improvement Project and selected districts under 3 years in the previous month Additional Financing supporting the Baseline (2018): 42.724 and in selected districts National Nutrition Mission; Karnataka 19.925 Baseline (2018): 10% Multisectoral Nutrition Pilot; and Bihar Target (2022): 55.0 and 30.0 Target (2022): 50% Transformative Development Project (IBRD) (IBRD) Pipeline Indicator 3.1.2: Number of Milestone 3.1.2: Number of states Early Childhood Education in pregnant/lactating women with early childhood education Jharkhand (or component in state (PLW) and children under 3 curriculum framework developed for operation) years with access to ICDS children 3-6 years26 services in selected districts Baseline (2018): 0 IBRD Knowledge Services Baseline (2018): 56,000 Target (2020): 5 Investing in the Early Years Target (2022): 64,000 (IBRD) Programmatic ASA; Partnership for (IBRD) Nutrition; Evaluating Integration in Milestone 3.1.3: Number of pilot ICDS in Madhya Pradesh; Impact Of which female children schools/ICDS centers administering Evaluation of Bihar Jeevika Multisector under 3 years: the School Readiness Instrument and Convergence Initiative; Development Baseline (2018): 8,300 Early Childhood Education Quality of Evaluation Tools for Early Child Target (2022): 8,700 Assessment Scale in selected states Education; and Quality Improvement (IBRD) Baseline (2018): 0 in Early Childhood Education Target (2020): 3,000 (IBRD) 23 Receiving solid or semi-solid food and breastmilk for children ages 6–8 months; receiving foods from 4 or more food groups for children 6–23 months. 24 Percentage of children ages 6–8 months receiving solid or semi-solid food and breastmilk. 25 Percentage of children ages 6–23 months receiving foods from 4 or more food groups. 26 Curriculum includes training learning materials and play materials designed and ready for statewide distribution. 71 Objective 3.2: Improve the quality of education in schools and colleges Intervention Logic Better quality education is an important investment in a more prosperous India over the long term. A better educated population is integral to creating the human capital needed to reduce poverty and sustain growth, particularly as India moves toward a more diverse economy typical of a MIC. India faces a learning crisis, as does the world, as evidenced in recent years by poor learning levels globally. However, India is taking steps to improve quality and learning outcomes at every level of the education system. Owing to concerted efforts in recent decades, issues of access and gender balance have largely been resolved, but the challenge of ensuring quality education has grown more acute. In drafting its New Education Policy to supersede the earlier policy which was last modified in 1992, as well as in formulating its national education programs, the GoI is prioritizing improved quality and learning in schools, as well as quality assurance and better governance in tertiary education. Both the SCD and the GoI have identified several challenges for improving quality. These include low teacher capacity and limited incentives for performance, weak accountability mechanisms that contribute to absenteeism, ineffective use of teaching time, and inadequate skills. There are also system-level issues such as inadequate structures for measuring and tracking student learning in schools over time. The private sector can be an effective partner that can bring about systemic changes through effective public-private collaboration and use of technology. At the tertiary level, there are additional challenges with governance in educational establishments and quality assurance mechanisms. Until these challenges are addressed, schools and colleges will continue to fail learners, and systems will continue to fail schools, colleges, and learners. The World Bank Group is well positioned to support the GoI in its efforts to address these challenges, building on its longstanding experience with education reforms in India, including multiple operations supporting national programs targeting primary, secondary, and tertiary levels. The WBG’s track record of policy and financing work at national and state levels provides a practical and analytical basis for partnering with India to improve its learning outcomes. The WBG also can leverage global knowledge encapsulated in its 2018 World Development Report, Learning to Realize the Promise of Education, as well as its experience in supporting governments on school reforms in a host of large MICs with strong subnational units, such as Brazil, Mexico, and Vietnam. WBG activities will focus on (i) strengthening teacher performance; (ii) building institutions and systems to identify improvements in learning outcomes and inform practice; and (iii) enhancing governance and quality assurance within schools and colleges. The Group will work at the central level to partner with the GoI on programs that incentivize state level performance as well as directly with state governments (such as Bihar, Madhya Pradesh, and Odisha) to help them tackle implementation challenges, since most issues with education service delivery occur at the state level. The WBG will also explore delivery models that leverage the private sector to deliver quality education at all levels. This includes promoting effective complementarities through public-private collaboration and the provision of supplementary education services, such as leveraging technology to enhance learning outcomes and building on lessons derived from other IFC investments in the Ed Tech space. IFC will work with private sector providers to expand access to quality affordable education and related services that contribute to better learning outcomes and employment opportunities. Finally, the WBG will leverage the experiences of particular states as a way to drive improvements in other states through effective knowledge exchange. The WBG will identify so-called Lighthouse states that offer examples of innovative approaches to improving quality, affordability and learning that are suitable for adoption or adaptation by other Indian states. In addition, where appropriate, there will be an emphasis on 72 showcasing India as an example for other countries. For example, through TEQIP III, India is participating in an international study that involves benchmarking the performance of engineering students and identifying correlates of performance. The WBG will seek to facilitate sharing of this experience in tertiary learning assessment with other countries as part of Lighthouse India. • Teacher performance. Three school education projects—SSA III (Sarva Shiksha Abhiyan III -- Third Elementary Education Project, which is closing in FY18), forthcoming support to elementary education and secondary education in focus states, and Bihar’s Enhancing Teacher Effectiveness project—will continue to strengthen professional development and accountability systems for teachers. Avenues for innovation include designing quantifiable benchmarks for teacher performance and collaborating with NUEPA’s recently-created school leadership training program to strengthen the leadership skills of principals as well as the approaches to governance within schools. During the CPF period, the WBG will follow up with operations to support reforms at elementary and secondary levels, with a focus on local innovation to inform national programs. IFC will also continue to explore opportunities to invest in providers of ancillary services with potential to benefit public and private institutions at the tertiary level, the WBG will continue to support improved faculty performance through direct (professional development) and indirect (such as such as autonomy and quality assurance systems) interventions. Such activities are already being supported under the Madhya Pradesh and Odisha Higher Education Project and TEQIP III. • Building institutions and systems to deliver quality in education. Current assessment systems will be strengthened to allow for the identification of improvements or deterioration in learning levels over time. The focus also will be on preparing India for participation in international benchmarking exercises such as the Program for International Student Assessment.27 At the tertiary level, the GoI has established two indirect mechanisms that emphasize learning and employability: ranking of colleges and accreditation. During this CPF period, the focus will be on encouraging colleges to become accredited by working closely with state governments in Madhya Pradesh and Odisha and at the national level, through TEQIP III. These activities will also include a focus on private colleges. IFC will continue to support private sector provision of quality education at all levels including the use of digital platforms, with a particular focus on rural and small towns. • Governance reforms providing quality assurance at the tertiary level. All World Bank projects at the tertiary level will support measures to improve quality assurance, strengthen the role of the Board of Governors, and improve transparency in college functions such as staffing choices and procurement. Institutions that are able to demonstrate sufficient quality will receive autonomous status which in turn will allow them to exercise greater managerial control to innovate and be responsive to market needs. 27 Activities for school education include: (i) strengthening the technical quality of assessment systems across the school cycle; (ii) building long-term capacity at the national and state levels to undertake assessments; and (iii) strengthening stakeholders’ ability to use assessment data to improve teacher training programs, curriculum, classroom interactions and ultimately student learning. 73 CPF Objective Indicators Supplementary Progress WBG Program Indicators Indicator 3.2.1: Percentage Milestone 3.2.1: Percentage of IBRD Financial Services of students in focus states schoolteachers who have received Ongoing successfully completing in-service training in the last Elementary Education: Enhancing secondary education28 academic year in focus states30 Teacher Effectiveness in Bihar; Sarva Baseline (2015–16): 53%29 Baseline (2016–17): Shiksha Abhiyan III (Third Elementary Target (2022): 55% Elementary - 20% Education Project); Madhya Pradesh (IBRD) Secondary (in focus states) - 11% Higher Education Quality Improvement Target (2022): Project; Odisha Higher Education Indicator 3.2.2: Percentage Elementary - 40% Project for Excellence and Equity; and improvement in lowest Secondary (in focus states) - 40% TEQIP III state score on national (IBRD) learning outcomes Pipeline assessment (NAS Class 5 Milestone 3.2.2: Learning standards Elementary Education: Enhancing language and mathematics, at the secondary level finalized and Quality Improvement and Teacher or equivalent) adopted in at least 75% of focus Effectiveness (EQUITE); and Baseline (2018): Language - states Strengthening Secondary Education in 43% and Mathematics - 39% Baseline (2018): No national learning Select States Target (2022): 3 percentage standards for secondary grades point improvement over Target (2021): NAS grade 10 based on IBRD Knowledge Services baseline learning standards for secondary Promoting Quality in Early Childhood (IBRD) grades finalized and adopted in at Education; Improving Teacher least 75% of focus states Performance through Outcome Linked Indicator 3.2.3: Number of (IBRD) Indicators; South Asia Region supported institutes with Companion to the 2018 World University Grants Milestone 3.2.3: Improved national Development Report; Student learning Commission autonomy measurement of learning outcomes assessment in higher education (TEQIP Baseline (2018): 71 in school education III); Behavioral interventions for first- Target (2021): 98 Baseline (2018): Technically valid data generation college goers (TEQIP III); (IBRD) on learning achievement levels over Technical support to the NITI Project; time is unavailable in NAS reports and Sustainable Action for Target (2021): NAS reports provide Transforming Human Capital technically valid data on learning achievement levels over time IFC (IBRD) Investments in private sector entities that provide quality education services, digital education 28 Successful completion is calculated as the number of students passing the grade 10 exam (in year t) as a proportion of those enrolled in grade 9 (in year t−2), adjusted for repeaters. Select states include Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura. 29 Baseline has been calculated for 2015–16; the most recent year for which data is available from the U-DISE. 30 Project under preparation; baseline will be available in early June 2018. Baseline figures are based on U-DISE data. 74 Objective 3.3: Increase access to improved rural water supply and sanitation services Intervention Logic Improved water supply and sanitation services31 contribute to health and economic welfare of the rural population. Increasing access to improved and sustainable water supply and sanitation services are critical prerequisites to developing human capital to unleash the growth potential of rural areas. Assessments by the World Health Organization (WHO) show that the lack of access to safe drinking water and adequate sanitation services increase the risk of diseases, especially diarrhea, and estimate that one in every ten deaths in India is linked to poor sanitation and hygiene practices. Also, several studies show the correlation between inadequate sanitation and ‘stunting’ for India. The recently completed Rapid Survey on Children estimates nearly 44 million children under 5 years (about 32 percent of all children under 5 years) to be affected by stunting.32 Moreover, lack of safe drinking water and open defecation has a sharp gender impact, affecting the time spent in collecting water and the dignity and safety of women and girls. The SCD also highlights that poor water supply and sanitation contributes to undernutrition by transmitting pathogens and infections that inhibit nutritional uptake. The SCD further points out the need to reassess the country’s water and sanitation policies and strengthen public sector institutions, especially the frontline service delivery agencies, to ensure services are delivered to citizens. Despite several programs and initiatives in the past, water supply and sanitation service delivery in rural India continues to be a key challenge. Rural water supply: Although 90 percent of the rural population have access to improved water sources, only 50 percent have access within premises, and only 34 percent are covered with piped water supply.33 Moreover, such access does not always yiedl reliable, sustainable, and affordable services. Large numbers of rural habitations slip to a ‘partially covered’ status, mainly due to sources going dry or systems working below capacity due to poor O&M. A depleting groundwater table and deteriorating groundwater quality are further threats to sustainability. Although the 73rd Constitutional Amendment promotes service provision to be decentralized to local governments (PRIs), most of the work of designing, implementing and operating RWSS schemes continues to be with the state engineering agencies which also adversely impacts accountability. Rural sanitation: As per the last JMP update of 2017, about 41 percent of the rural households have access to improved sanitation facilities with a significant decline in open defecation from 80% in 2001 to 56% in 201534. The flagship government program Swachh Bharat Mission-Gramin (SBM-G, Clean India Mission), launched in 2014, has reported increased rural sanitation coverage to about 82% of the households while 58% of villages have been declared as open defecation free (ODF) by 2017-18. Earlier national programs, including Total Sanitation Campaign and Nirmal Bharat Abhyan, increased expenditures in rural sanitation, but mainly focused on toilet construction. Significant ‘slippages’ in coverage were observed, coupled with low usage, mainly due to lack of understanding of the linkages between sanitation, hygiene practices, and related diseases at the community level. India is working to increase access to piped water supply and reduce open defecation. The GoI has promoted flagship programs to improve services: (a) National Rural Drinking Water Program (NRDWP) for extending piped water coverage to 90 percent habitations by 2022, including 80 percent household coverage; (b) Restructuring of NRDWP in November 2017, to introduce a performance-based element in fiscal transfers from the GoI to states to address sustainability of schemes; and (c) Swachh Bharat 31 Improved services as per definition of access to improved sources, Joint Monitoring Program (JMP) 2017, WHO and UNICEF. 32 Rapid Survey on Children, Ministry of Women and Child Development, GoI, 2013–14. 33 JMP 2017. Estimates on the use of water, sanitation, and hygiene in India. Revised July 2017. 34 JMP 2017. Estimates on the use of water, sanitation, and hygiene in India. Revised July 2017. 75 Mission to address behavior change challenges to achieve Open Defecation Free (ODF) status countrywide and increase access to solid and liquid waste management, by October 2, 2019. The World Bank Group is supporting the GoI and states in their efforts to address the challenges in the RWSS sector. The key lessons from the World Bank’s support in ; piloting and scaling up the RWSS reform program during the last two decades are: (a) the need to use PRI-based decentralized institutional models for the design, implementation, and management of RWSS services and behavior change programs; (b) sustainability can be enhanced through inclusive, community-based, participatory approaches to RWSS service delivery; and (c) building the capacity of state RWSS departments, sector institutions, local governments, support organizations, local private sector, and communities is critical to successful outcomes. Going forward, the WBG will focus on strengthening institutions and building capacity for expanding access to improved, sustainable, and affordable water supply and sanitation services. The WBG is currently working in seven states (Kerala, Maharashtra, Punjab, and the LIS of Uttar Pradesh, Bihar, Jharkhand, and Assam) to support service delivery improvement and address implementation challenges. These projects are improving piped water coverage for efficient and sustainable services, along with building the capacity of the state-, district-, and village-level sector institutions to design, implement, and manage RWSS schemes, including multi-village schemes to address water scarcity and sustainability issues. The World Bank is also supporting SBM-G—a flagship program of the GoI— through a PforR Operation and TA program to achieve and sustain ODF status by bringing behavior change of people toward toilet usage. TA is helping to strengthen delivery institutions and systems at the national level and in select states, in planning, implementing, and monitoring. These ongoing projects will primarily contribute to key outcomes under the CPF period for increase in access to improved and sustainable RWSS services. Under the Lighthouse India initiative, the World Bank will facilitate knowledge sharing and peer-to-peer learning across states. ‘Swachha Sangraha’ a GoI Knowledge Management Platform developed under the SBM-TA will promote exchange of knowledge in implementation in rural sanitation. Lessons learned from ongoing operations may be utilized for potential further operations, likely focusing on further strengthening local institutions, engaging the private sector to enhance efficiency, and increasing quality assurance through robust M&E systems. The WBG will also leverage global knowledge in supporting governments on RWSS programs, particularly from Brazil and Vietnam. CPF Objective Indicators Supplementary Progress WBG Program Indicators Indicator 3.3.1: Number of people Milestone 3.3.1: Percentage of IBRD Financial Services provided with access to improved habitations with 50% or more O&M Ongoing water sources in focus states cost recovery in focus states Kerala RWSS; Maharashtra Baseline (2017): 2.5 million Baseline (2017): 0% RWSS; Punjab RWSS; RWSS-LIS Target (2022): 12 million Target (2019): 50% (UP, Bihar, Jharkhand, and (IBRD) (IBRD) Assam); Sanitation: SBM-G support operation; and Uttar Milestone 3.3.2: Reduction in Indicator 3.3.2: Number of people Pradesh Water Sector prevalence of open defecation provided with access to improved Restructuring Project Phase 2 (number of additional people who sanitation services in focus states stop practicing open defecation) 35 Baseline (2017): 2.37 million IBRD Knowledge Services Target (2022): 6.65 million Rural Water Strengthening (IBRD) service delivery models for 35 Based on the indicator value from the World Bank supported Swachh Bharat Mission Support Operation. 76 Baseline (2017): TBD36 efficient services; and SBM TA: Target (2020): 95 million Strengthening SBM-G program (IBRD) delivery institutions at the national level and in select Milestone 3.3.3: Number of districts states in planning, using improved planning processes in implementing, and monitoring select states Baseline (2017): 2 Target (2020): 12 (IBRD) Objective 3.4: Improve the quality of health service delivery and financing as well as access to quality healthcare Intervention Logic The key systemic challenges in India’s health sector are the quality of health care, access to quality services, and inequity and vulnerabilities arising from how health is financed. The SCD finds that the average Indian village has nearly six health care providers and the cost of a single interaction with a private primary care provider ranges from US$0.5 to US$2, amounts that are relatively affordable. However, services procured often lack quality: for instance, only 4 in 10 people reporting symptoms of a heart attack to a health care provider would be correctly diagnosed as heart attack cases while 80 percent of children with viral diarrhea would be incorrectly given antibiotics. Potential solutions may include coming from scaling-up innovative remote diagnostic approaches. In addition to quality issues, financing of health is largely borne by households’ out-of-pocket payments (OOPP), an inefficient and inequitable form of health financing (over 64 percent of health expenditures were OOPP (National Health Accounts Estimates for India 2013–14, Ministry of Health and Family Welfare). The SCD notes that an estimated 49 million people are pushed into poverty by health expenditures and OOPP contribute to about a fifth of the poverty headcount rate in India. The focus on quality, affordability in health service delivery and financing mechanisms supports the GoI’s approach to the health sector. India has stressed SDG 3: ‘Ensure healthy lives and promote well- being for all at all ages’ and in particular SDG 3.8, to achieve universal health coverage. Toward this end, the GoI has just announced the Pradhan Mantri Swasthya Suraksha (Prime Minister’s Health Assurance) Mission to provide benefit coverage to 100 million families, with a 16-fold increase in the benefit coverage from the current scheme. In addition to alignment with GoI efforts, this objective corresponds to SCD findings which emphasize the importance of improved quality and addressing inequity in health care provision. The WBG will address health service delivery quality challenges though private sector and public- sector solutions. With a focus on incentivizing performance by institutional changes to service delivery in the public sector, the World Bank will engage in a series of tailored engagements in at least six states which have varied health challenges and levels of development of health systems. In the LIS of Uttar Pradesh, Uttarakhand, Nagaland, and Jharkhand, emphasis will be on basic management systems: in Uttar Pradesh, building the quality assurance function of the state government and revamping district hospitals; in Uttarakhand, on improving clusters of facilities in selected districts by outsourcing them to the private sector; in Nagaland, on upgrading facilities and improving accountability through community mobilization; and in Jharkhand, focusing on quality assurance of health facilities and other 36The baseline value of number of people living in Open Defecation Free villages will be established by the first round of National Annual Rural Sanitation Survey conducted under the World Bank supported Swachh Bharat Mission Support Operation. The target value will be compared to this baseline. 77 essential health systems. Planned operations in the more advanced states of Tamil Nadu and Andhra Pradesh will address how to adapt health systems to the growing burden of non-communicable diseases, an emerging challenge common to lower-middle-income economies. These engagements will also generate knowledge and provide examples for other states to learn from, harnessing the incentives of a competitive federal system. The WBG will support Lighthouse India knowledge exchanges. In addition, health sector improvements may be a focus area for a core state partnership operation. The World Bank will also provide advisory support to the National Health Mission, the Prime Minister’s Health Assurance Mission and NITI Aayog’s role to accelerate convergence in—as well as competitive pressure to improve—health outcomes, particularly through the implementation of the National Health Performance Index. Finally, the World Bank will continue to support national TB and HIV/AIDs programs, which have substantial flexibility built into how states implement these programs. While IBRD supports improvements in the public sector, the WBG will leverage the private sector by continuing to invest in access to quality care. While providing for the population’s health is a primary responsibility of government, the gap in service provision in India at present is too large to be filled by the public sector alone. IFC will continue to mobilize private sector capital to expand affordable, quality healthcare and create a mass market for lower income populations. IFC’s interventions will be through direct investments in private sector ventures, delivering advisory services for the central and state governments, as well as through PPPs where appropriate. IFC will focus on investing in health care service providers that contribute to making the system more effective, efficient, rational, safe, affordable, and ethical, increasing quality healthcare services to 31 million people living in Frontier states. Apart from concentrating on expanding primary and secondary services in underserved and rural regions, these initiatives will concentrate on treating the rising burden of disease from NCDs. IFC investments in health care service providers will prioritize (a) creating a mass market for lower income people in Tier II–III locations and frontier states by supporting established service providers and developing new ones; (b) supporting the expansion of affordable, quality primary care; and (c) supporting earlier stage and innovative models for health care. To help address health benefit payments leakages, IFC will also invest in direct digital payment systems, facilitating receipt of payments by 20 million health beneficiaries and workers. IFC will also invest in health product companies to support an increase in the production and distribution of affordable, higher-quality drugs as well as support innovative and disruptive technologies and local manufacture of medical equipment. IFC will also provide advisory support to pursue where appropriate PPPs which ensure quality, promote equity, reduce costs, and enhance affordability, and align with national and/or state health programs and development priorities. The WBG will support GoI efforts to improve the quality of health financing. The WBG will support efforts to shift towards the public sector bearing a larger share of health expenditures, providing for scale efficiencies, and improving the effectiveness and efficiency of public sector expenditures to yield better outcomes. The World Bank will provide advisory support, including to a knowledge hub for exchanging experience on government sponsored health insurance schemes to improve performance, especially in serving the poor. Where appropriate, the WBG will support PPPs for quality care and expanded health insurance coverage in LIS. Through its support to India’s TB and HIV/AIDS control programs, the WBG will partner with GoI to sustain funding for addressing HIV/AIDS and significantly increase financing for TB, thereby improving the allocative efficiency of health financing by redirecting expenditures to diseases with large externalities which more strongly justifies public intervention. A new TB operation will support the GoI goal of ending TB by 2025 by expanding the benefits of the government program (free drugs and diagnostics, nutritional and treatment adherence support, and counseling) for any TB patient regardless of whether treatment providers are public or private. 78 CPF Objective Indicators Supplementary Progress WBG Program Indicators Indicator 3.4.1: Number of public Milestone 3.4.1: Number of public IBRD Financial Services facilities with quality certification in facilities with an agreed quality Ongoing selected states improvement plan Uttar Pradesh Health Systems Baseline (2017): 25 Baseline (2017): 76 Strengthening Project; Target (2022): 84 Target (2022): 150 Uttarakhand Health System (IBRD) (IBRD) Development Project; Nagaland Health Project; National Aids Indicator 3.4.2 Number of persons Milestone 3.4.2: Percentage of Control Support Project; and with improved access to quality high risk groups diagnosed Accelerating Universal Access to healthcare services Baseline (2016): 40% Early and Effective Tuberculosis Baseline (2017): 0 Target (2019): 90% Care Target (2022): 10 million (IBRD) (IFC) Pipeline Milestone 3.4.3: Number of states Tamil Nadu Health System Indicator 3.4.3: Percentage of with formal mechanism to support Reform Project; Jharkhand Health HIV/AIDS high risk groups receiving TB patients in the private sector System Project; AP Health System anti-retroviral therapy (ART) Baseline (2017): 3 (Gujarat, Project; successor project Baseline (2016): 50% Maharashtra and Bihar) supporting TB treatment and Target (2019): 90% Target (2022): 20 prevention; and Uttar Pradesh (IBRD) (IBRD) Health Systems Strengthening Project Additional Financing Indicator 3.4.4: TB case notification Milestone 3.4.4: Number of states rate strengthening37 the quality of Baseline (2016): 128 per 100,000 health financing arrangements IBRD Knowledge services population Baseline (2018): 2 (Odisha, Ongoing Target (2022): 250 per 100,000 Uttarakhand) Programmatic ASA on Universal population Target (2021): 5 Health Care; India District (IBRD) (IBRD) Hospitals Strategic ASA; and Government Sponsored Health Insurance Scheme Knowledge Hub IFC Healthcare PPPs and investment in healthcare providers and delivery services, pharmaceutical companies, producers of vaccines, and in medical technology and devices 37‘Strengthening’ consists of at least one of the following: (i) Health insurance benefit package is expanded; (ii) Introduction of results-based budgeting; (iii) Expansion of strategic purchasing. 79 Objective 3.5: Improve the coverage and coordination of social protection systems Intervention Logic Improving the effectiveness of India’s social assistance programs is critical, particularly given the large scale of expenditures on SP. India has a wide variety of social assistance programs accounting for around 2.2 percent of GDP annually just at the national level, with significant additional spending by individual states. Despite these outlays, the SCD notes that coverage by programs remains an ongoing challenge, particularly in LIS, both for protective programs, as well as preventive instruments such as insurance for the poor and informal sector. The SP system is largely unprepared to address the needs of mobile populations—a group that is likely to continue to grow as economic reforms deepen. The current SP system comprises nearly 97 schemes leading to challenges in coordination across multiple agencies in the system for delivering SP. There is limited flexibility for states to tailor and design schemes best suited to their local needs. Many central schemes emphasize safety nets which protect the chronic poor and have less emphasis on preventive programs such as social insurance. Administrative coordination is a challenge, leading to different beneficiary registers, which are not all linked to a unique identification system, and incomplete links to payment systems which would allow for direct benefit transfers to beneficiaries. This results in duplication of administrative effort as well as costs, leakages, and delays in the transmission of benefits. The GoI has expressed its commitment to improving the coordination of schemes and the SP system through (i) legislative rights for different types of SP (National Rural Employment Guarantee Act 2005, National Food Security Act 2013, and the Unorganized Workers Social Security Act 2008) (ii) the draft NITI Aayog Action Agenda 2016–2020, and (iii) tracking the UN SDG for SP systems (1.3). Effecting this qualitative shift will build on three building blocks. First, collection of new census data with asset and sociodemographic information through the Socio-Economic and Caste Census (SECC) in 2011 has been an important milestone in addressing bottlenecks in the beneficiary identification process for several schemes by serving as a consolidated social registry. Second, the central government has provided strong impetus to enable improved consolidated government-to-person payments through campaigns to open bank accounts (most recently, under the PMJDY), by issuing national identity cards (Aadhaar), and by promoting the transition to digital payment systems through the Direct Benefit Transfer initiative. Third, the GoI plans to create a platform to allow states and the central government to better coordinate and provide portable benefits to unorganized workers through a new Unorganized Workers Identity Number (UWIN). Whereas the previous strategic engagement period focused primarily on expanding coverage of programs in target states, the WBG will support both improving coverage and emphasizing improved coordination of SP schemes. This will be achieved through a mix of knowledge services and lending operations at national and state levels: (i) State-level operations financing governments to build program outreach, targeting, and last mile delivery systems to strengthen delivery and coverage of core safety nets and welfare services in Jharkhand and Bihar, with possible expansion to additional states later in the CPF period. These investments will enhance coverage through creating new points of presence for target groups. In addition, business process re-engineering and capacity building will aim to improve coordination across different programs and business processes at the state and sub-district level. (ii) An ASA to bolster cross-state knowledge exchange on SP systems, including from work in Jharkhand and Bihar as part of the India Lighthouse agenda. 80 (iii) Support to the Ministry of Labor and Employment in design and development of portable delivery systems which aim to expand social security coverage of informal workers through leveraging global experience, knowledge, and technical advisory services. (iv) Support the Ministry of Rural Development and select states in the design, piloting and scale-up of social registries to improve beneficiary identification and targeting. (v) ASA to strengthen state capability to coordinate benefit delivery across multiple programs by adopting digital payment systems in several LIS through support to Direct Benefit Transfer (DBT) Cells including training and support for technology development; and (vi) An ASA to support the Pension Fund Regulatory Authority of India and support for the Health Insurance agenda to expand coverage of pensions and social insurance among the informal sector. CPF Objective Indicators Supplementary Progress WBG Program Indicators Indicator 3.5.1: Share of poor Milestone 3.5.1: Number of states IBRD Financial Services (Bottom 40%) of households using a common social registry for Ongoing covered by any social safety net identifying eligibility for the largest Jharkhand Tejaswini program increased in target districts three cash-based programs in Socioeconomic Empowerment of Baseline (2015): 48%38 targeted states Adolescent Girls and Young Target (2022): 60% Baseline (2017): 341 Women; and Bihar Integrated (IBRD) Target (2020): 5 Social Protection Strengthening (IBRD) Project Indicator 3.5.2: Share of households covered by any government Milestone 3.5.2: Number of states insurance program increased in participating in knowledge IBRD Knowledge Services target districts exchange on SP systems State Capability for Service Baseline (2014): 15%39 improvement and development Delivery; Social Registry; Target (2022):33% supported by the World Bank Accelerating DBT in Low Income (IBRD) Baseline (2017): 0 States; Universal Health Target (2020): 4 Insurance PFRDA; Chhattisgarh Indicator 3.5.3: Share of cash-based (IBRD) DBT; and Unorganized Workers SP programs integrated onto the Identification Number for DBT platform in targeted states portable benefits (UWIN) ASA Baseline (2017): 12%40 Target (2022): 60% (IBRD) 38 This measure uses Social Protection Surveys conducted as part of broader analytic work to support operations in Bihar and Jharkhand by the SPJ team in 2014 and 2015 respectively. The indicator captures share of bottom 40 percent households (based on a survey-based weighted asset index) reporting receipt of benefits from any safety net—in-kind or cash. End-line surveys shall be conducted as part of project activities to provide target estimates for 2022. 39 Share of households covered by government health insurance programs (as health insurance programs report the highest take- up and expenditures among all social insurance programs in India) from NSSO 2014. Since the ongoing/future WBG ASA aims to enhance coverage at the all-India level through advisory and analytic support on the design of health insurance platforms, Atal Pension Yojana (PFRDA) and UWIN, we provide national estimates for this indicator. 40 Share of CSS schemes reporting data on payment transfers to DBT portal as a share of the 84 CSS which are implementing DBT in Odisha (10 CSS schemes in the state are reporting to the DBT portal as on December 2017). The estimate is restricted for Odisha where Bank ASA is ongoing. The national estimate for the same measure is 16%. 41 Ongoing SECC TA required the Social Protection and Jobs (SPJ) team to take stock of states which use a consolidated registry. The proposed measure captures the number of LIS using a registry due to focus of ongoing TA. At present, Telengana, Rajasthan, and Madhya Pradesh host a registry approach for identifying eligible populations for largest cash SP programs. 81 Annex 2. India FY13-17 Country Partnership Strategy Completion and Learning Review Date of CPS: March 21, 2013 (Report No. 76176-IN) Date of Progress and Learning Review: September 2, 2015 (Report No. 99283-IN) Period Covered by the Completion and Learning Review: July 1, 2012 to June 30, 2017 I. INTRODUCTION AND SUMMARY OF FINDINGS 1. This Completion and Learning Review (CLR) is a self-evaluation by the World Bank Group (WBG) of the outcomes and implementation of the India FY13–17 Country Partnership Strategy (CPS). The CLR evaluates the extent to which the CPS was successful in achieving its stated objectives, how well the WBG designed and implemented the program, and how the WBG’s engagement supported progress toward the goals of ending extreme poverty and boosting shared prosperity in a sustainable manner. The CLR uses the results matrix in the CPS as updated in the 2015 Progress and Learning Review(PLR) as well as contextual analysis of engagement in respective sectors to assess outcomes. The CLR seeks to hold WBG accountable for its performance and articulate lessons learned for the WBG’s further engagement in India. 2. The overall CPS development outcome rating is Satisfactory.42 Out of the 19 objectives grouped into 3 engagement areas in the CPS, 11 are rated as achieved, 3 as mostly achieved, and 5 as partially achieved. The aggregation of these ratings by engagement area yields ratings of Moderately Satisfactory for the engagement area of Integration and Satisfactory for the Transformation43 and Inclusion engagement areas. The WBG also effected a substantial shift toward increasing engagement in lower income states/special category states (LIS/SCS),44 as was envisaged by the CPS, though it did not reach the target of a nearly threefold increase from 12 to 30 percent of the volume of commitments in specific state- level operations in these states. The portfolio had a total of 22 percent of total commitments in LIS/SCS state level projects and a further 13.5 percent of commitments in national operations which were directed to LIS/SCS by the end of the CPS period. 3. WBG performance in implementation of the CPS is rated as Good.45 The CPS’s design was well aligned to Government of India (GoI) priorities and appropriately adjusted at the PLR stage. There was a clear line of sight between objectives and strategic approach, as well as alignment with the WBG’s twin goals, particularly in the increased focus on LIS/SCS. The design set out a strategy for smartly engaging with India’s various tiers of government, employed a range of instruments, and formulated results that overall were appropriately ambitious and attributable to WBG activities. Implementation of the CPS was strong, leading to a growing lending portfolio and a comprehensive Advisory Services and Analytics (ASA) program. The portfolio showed strong development outcomes, with 87 percent of concluding operations rated Moderately Satisfactory or above by the Independent Evaluation Group (IEG), though there were persistent challenges with the timeliness in preparation and execution of operations. 42 CPF/CPS development outcome ratings are on a six-step scale of Highly Unsatisfactory, Unsatisfactory, Moderately Unsatisfactory, Moderately Satisfactory, Satisfactory, and Highly Satisfactory. A Satisfactory rating requires that the majority of ratings of objectives are assessed as Achieved and no major shortcomings are identified. Assessment of achievement of objectives is based primarily on performance against indicators in the results framework for each objective. 43 Transformation refers to the continuum of rural-urban shifts which India is undergoing. 44 LIS include Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, and Uttar Pradesh, while SCS include Himachal Pradesh, Uttarakhand, and the states in the Northeast. 45 WBG performance is rated on a four-step scale of Poor, Fair, Good, and Superior. A good rating requires that design and implementation of the program successfully contributed to pursuit of key CPF/CPS objectives and timely adaptation to changing circumstances and priorities. 82 II. ASSESSMENT OF CPS DEVELOPMENT OUTCOMES 4. The WBG had substantial achievements in a wide range of sectors. The India country program was among the largest and most important for the WBG. This reflected both a legacy of long, broad, and growing engagement as well as responsiveness to ongoing client demand across a spectrum of development challenges. Discussion of achievements by objectives within engagement areas follows. 1. Integration Engagement Area 1.1 Transport Connectivity Government Outcomes Sought Status CPS Indicators Status Strategic Objective by CPS Upgrade national Improved transport Partially Number of highways Mostly achieved and state highways connectivity in achieved upgraded and maintained in targeted States good condition Complete Eastern Rail transport capacity on Not achieved and Western Eastern Freight Corridor Freight Corridors increased 5. WBG operations contributed to increased quality of roads and particularly to strengthening the institutional framework for the road sector, although numeric targets were not fully achieved during the CPS period. The World Bank financed nine projects which were active in a combination of construction, rehabilitation, or maintenance of state roads across 10 states, including 3 LIS/SCS. The CPS initially targeted 9,000 km of state-level roads to be upgraded or maintained, a target adjusted to 7,000 km in the PLR, while the portfolio impacted a total of 5,500 km of roads, of which 3,300 km involved better maintenance practices under one operation. The target was only partially met owing to slower than expected implementation owing to passive contract management in two projects, while performance on the other seven was satisfactory. Although the specific number of kilometers of state roads improved was less than the target, the WBG was able to contribute more broadly to important reforms in the road sector. The state-level roads projects as well as the National Highways Interconnectivity Project and ASA to the National Highway Authority of India contributed to the development of better road management capacity, including more modern asset management and approaches to improving climate resilience of transport sector assets (notably low-cost, low-energy-consuming construction techniques employed in Rajasthan and Bihar), promoting multimodal transportation networks, and ensuring better links between transportation infrastructure and economic activity to use the infrastructure. In addition, the WBG supported greater usage of the design-build-finance-maintain-operate-transfer model (so-called ‘hybrid annuity’) for road construction that had been developed earlier in a WBG-financed operation. This model has become a primary contracting arrangement to commission infrastructure in the National Highway Development Program, and variations of it are being employed in other sectors, such as wastewater treatment. The World Bank also contributed to improving connectivity through US$1.5 billion in financing as well as technical support for the GoI’s Rural Roads scheme (Pradhan Mantri Gram Sadak Yojana, PMGSY); this national program involving US$38 billion in investments succeeded in increasing access of rural communities to an all-season road from 67 percent in 2010 to over 90 percent in 2016. 6. WBG engagement was integral to rail sector institutional improvements though work on the Eastern Dedicated Freight Corridor (EDFC) has experienced delays. The World Bank contributed to important institutional changes through the implementation of three large EDFC operations and associated non-lending technical assistance (NLTA). WBG provided support for regulatory changes to 83 establish a new Rail Development Authority, open up the rail system allowing for independent operators, and pioneer the use of new concessional agreements that provided for greater innovation and performance incentives. ASA has provided options to the GoI on additional financing mechanisms for its rail system, rationalization of pricing on the railways, state-of-the-art track laying methodology, railway safety, and station design innovation. While there has been significant progress toward achieving the objective, meeting the specific results indicator of increased capacity was not achieved during the CPS period owing to delays in the freight corridor’s construction. These delays were due to implementation challenges mainly related to land acquisition. The railway is expected to be completed by 2020. 1.2 Electricity Transmission Outcomes Sought by Government Strategic Objective Status CPS Indicator Status CPS Strengthen India’s electricity supply and Improved inter- Achieved Increase in Achieved transmission system in order to increase regional power power exchange availability and reliability of power for transmission among regions economic development connectivity 7. Enhancing transmission capacity was a key element of WBG activities in the electricity sector. World Bank financing for POWERGRID, an Indian state-owned power transmission company, supported procurement of new transmission technologies in India. For example, the Champa-Kurukshetra Transmission System was a unique project given the complexity of procurement of high-voltage direct current (HVDC) terminal package. Similarly, procurement for certain packages for 765 kV transmission lines, which was an emerging voltage level in India, was also carried out with World Bank financing. Based on experience with construction of the 765 kV EHVAC and ±500 kV HVDC transmission system, POWERGRID is now installing higher transmission voltages of ±800 kV HVDC and 1,200 kV ultra-high- voltage alternate current (UHVAC) system to achieve efficient utilization and increased power transfer capability for the transfer of bulk power over long distances. The World Bank-financed construction of a 1,200-kV upgradable transmission line from Wardha to Aurangabad has also been completed. Early in the CPS period, POWERGRID, including with support from World Bank financing, achieved a milestone by interconnecting the Southern Grid synchronously with rest of the National Grid through commissioning of the 765 kV Raichur (Karnataka) - Solapur (Maharashtra) line, a key element in achieving GoI’s goal of ‘One Nation-One Grid-One Frequency’. After integration of the Southern Region with the rest of the grid through the transmission link funded under the World Bank loan, POWERGRID along with the Power System Operation Corporation is handling one of the largest transmission networks at a single frequency in the world. Overall, the POWERGRID and Haryana Power operations directly resulted in over 5,000 km of transmission lines being installed. WBG’s operations were a relatively modest part of India’s overall achievement in increasing annual electricity exchange between regions from 46,000 GWh in 2009 to more than 89,000 GWh in 2017. 84 1.3 Skills Development Government Strategic Outcomes Status CPS Indicators Status Objective Sought by CPS Develop demand- Improved Mostly Increase in the number of graduates of Partiallly driven, skilled demand-driven achieved Industrial Training Institutes employed achieved workforce by skills for within the first year of completing providing increased productive training opportunities for skills employment training 500,000 youth (including more than 40% Achieved women) from supported Self Help Groups and Community Development Organizations placed in appropriate jobs 8. The WBG supported reforms to improve the quality and labor market responsiveness of technical and vocational education and training. Skill development was an increasing focus for India over the CPS period. WBG’s engagement stepped up in particular following the designation of skills development as one of six key priorities at the 2014 meeting between Prime Minister Modi and WBG President Kim. Through operations involving higher technical education institutions, long-term training at industrial training institutes (ITIs), and short-term training linked to rural livelihood programs as well as other targeted vulnerable groups, the World Bank supported key shifts in approach to skills development. The most important shifts involved (a) increasing involvement of employers in curricula, (b) designing programs that address the needs of diverse target groups, and (c) developing robust and useable information and monitoring systems. Successive World Bank-financed operations working on long-term training in ITIs supported sector boards composed of industry representatives and institution heads to lead curriculum development, Institute Management Committees to institutionalize industry presence in the operation of public ITIs, and inclusion of private ITIs into overall skills development planning. These changes were associated with a significant increase in the ratio of ITI graduates employed within the second year of completion from 60 percent (of which 28 percent were women) to 67 percent (of which 58 percent were women), though this did not meet the implicit CPS target of a 10 percentage point increase.46 Complementing formal institutions, the WBG supported skills development through the National Rural Livelihoods Project (NLRP) as well as several state-level operations, which included training components for the rural poor. These operations supported 505,039 youth in securing better jobs, exceeding the CPS target. Notably, an evaluation in Tamil Nadu highlighted that 89 percent of trainees in the livelihoods program reported higher incomes post training. The WBG also produced impactful analytical work on skills training provision, most notably the 2016 study on labor market outcomes of major government skills programs. Building on analytical work and operational experience, a US$250 million PforR (Program for Results) operation was approved at the end of the CPS period to support the GoI’s overall US$3 billion skills programming efforts, with a focus on changes to increase market relevance of training, quality assurance, and quality and effectiveness of monitoring and evaluation (M&E) systems. 46Note that the CPS target of 10 basis points was within one year of completion, which appears to be a mismatch since the baseline of 60 percent was based on data for persons employed after two, not one, years. 85 1.4 Private Sector Investment in Low Income States Government Strategic Outcomes Sought by Status CPS Indicator Status Objective CPS Low private sector Enhanced private Achieved Additional US$1.3 billion private Achieved investment in Low Income investment in Low investment facilitated in LIS States Income States states by 2017 9. The International Finance Corporation (IFC) significantly expanded its investments and advisory services in LIS. IFC provided US$1.4 billion financing to support private sector enterprises and engaged in 43 advisory projects in LIS, exceeding the CPS target. IFC engaged across segments including in health, financial inclusion, housing finance, microfinance, and the water sector. IFC’s investments and advisory services interventions succeeded in establishing key infrastructure and providing ‘proof of concept’ for private sector engagements in LIS. Many were transformational public-private partnership (PPP) initiatives, including India’s first net metering solar PPP project in Odisha in which IFC helped central regulators draft national-level net metering guidelines and state-level net metering guidelines; the first medical college PPP and the first medical insurance PPP (in Meghalaya); the world’s largest and India’s lowest tariff solar park (in Madhya Pradesh); and the first citywide energy efficiency street lighting, first citywide ‘network health care’, and affordable housing PPPs (in Odisha). A total of 22 of IFC’s 24 PPP engagements were in LIS, leveraging US$122 million of additional private sector financing over the CPS period. These PPPs are expected to leverage an additional US$600 million of private sector finance beyond the CPS period when these projects achieve financial closure. IFC exceeded its targets in the LIS despite persistently low private sector appetite for investments in these states driven by negative perceptions about infrastructure, service delivery, supply chains, and governance. 1.5 Regional Connectivity Government Strategic Outcomes Sought by Status CPS Indicators Status Objective CPS Integrate regional Improved levels of Partially 150 MW of electricity traded Achieved market in trade, regional trade and achieved between India and Nepal infrastructure (power investment; connectivity and transport), and between India and Border crossing time between Not investment neighboring countries India and Nepal reduced by 20% achieved 10. The WBG contributed to slow but steady progress in promoting connectivity between India and its neighbors. World Bank-financed operations with POWERGRID included financing for a 500 MW HVDC back-to-back terminal along with Bheramara (Bangladesh) to Baharampur (India) 400 kV DC, which in turn enabled a power flow of 500 MW from India to Bangladesh. Currently, 160 MW of electricity is being exported to Nepal using a partially completed 400 kV cross-border transmission line, meeting the specific result target in the CPS. The substation and other receiving infrastructures under the project were completed shortly after the end of the CPS period, enabling an additional 150 MW of electricity to be imported using the World Bank-financed infrastructure. Several World Bank-financed operations are bringing about improved transport connectivity. A central road link financed by the World Bank along the Kathmandu-Birgunj-Kolkata Corridor, at Narayanghat-Mugling and integrated checkposts at the Birgunj- Raxaul border remain under construction. These improvements are complemented by development of soft infrastructure, notably the operationalization of a National Trade Information Portal that is providing essential information needed by traders to import and export in one electronic portal and near operationalization of Electronic Data Interchange of the Customs Transport Document between Nepal and India. Altogether, World Bank-financed investments are expected to reduce border crossing time at 86 the key Birgunj-Raxaul border by 20 percent by end-2019. More generally, WBG support for improving road connectivity in the Northeast through roads operations in Assam, Meghalaya, and Mizoram contributed indirectly to better transport connectivity with neighboring countries in the region. 2. Transformation Engagement Area 2.1 Urban Governance Outcomes Sought by Government Strategic Objective Status CPS Indicators Status CPS Improve long-term planning for Strengthened Achieved Number of cities with Achieved sustainable and inclusive urban institutional capacity new/updated urban development; strengthen of urban government management systems to Governance and financial in targeted states improve service delivery sustainability of urban local bodies 11. WBG operations and analytical work supported incremental improvements in the operation of urban local bodies (ULBs). WBG activities focused on strengthening management practices among ULBs to help develop their capacity and therefore equip them to take a more proactive role in local development. This focus was aligned with a growing priority of the GoI to strengthen ULBs, notably through substantial increases in the level of financing following the 14th Finance Commission recommendations, which began to take effect in the FY17 budget. Through World Bank-financed urban development operations in Andhra Pradesh, Telangana, Tamil Nadu, and Karnataka, 320 ULBs’ planning and financial management systems were strengthened and e-governance tools were developed to improve interface with citizens in service delivery. These operations also supported urban planning exercises with new GIS maps in 78 cities. IFC’s PPP advisory services assisted the municipal corporations of Jaipur, Bhubaneswar, and subsequently four other cities in Odisha to convert previous inefficient and failure-prone streetlights to modern energy-efficient LED lighting in these cities, leading to expected energy savings of more than 80 percent and expected fiscal savings of over US$1 million per year. 2.2 Urban Transport Outcomes Sought Government Strategic Objective Status CPS Indicator Status by CPS Increase public transport; expand Improved urban Achieved Increase in modal share Achieved metro rail and bus system; and transport services by public transport in improve road safety target cities 12. The WBG supported improvements in urban transport systems through demonstration projects and leveraging impact through peer learning. The Sustainable Urban Transport Project targeted five cities with six demonstration projects that supported the achievement of the CPS objective of doubling the public transport modal share in targeted areas. The demonstration project for Pimpri-Chinchwad increased public transport’s share from 4.2 percent to 8.9 percent, the share of public transportation between Raipur and Naya Raipur rose from 0 percent to 36 percent, and an analogous increase expected to occur in Hubli-Dharwad after the CPS period. The operation also financed the operationalization of an Intelligent Transport System in the bus fleet in Mysore, the first such city to deploy such a system. The World Bank also indirectly supported an additional 100 projects through its ‘Leaders in Urban Transport Planning’ Initiative. The World Bank’s Mumbai Urban Transport Project 2A resulted in improving passenger carrying capacity, operational efficiency, and level of comfort, as well as institutional capacity of the corresponding authorities. At the same time, the modest scope of WBG activities during the CPF 87 meant that its contribution to the broader outcome was limited to a few local improvements and dissemination of technical good practices. 2.3 Water and Sanitation Government Outcomes Status CPS Indicators Status Strategic Objective Sought by CPS Improve access to Improved Achieved Additional 15 million people provided with Achieved water and access to access to improved water sources by 2017 sanitation services water supply in rural and urban and sanitation Additional 6 million people provided with access Achieved areas services to improved sanitation system by 2017 Additional 3,000 Gram Panchayats achieved Achieved Open Defecation-Free (ODF) status in targeted states by 2017 13. Building on its long-standing engagement in the sector, the WBG supported national and state governments to develop systems for implementing and sustaining on-the-ground improvements in water and sanitation. World Bank-financed operations at the state level (two in urban and seven in rural areas) as well as support for a national-level program focused on LIS led to the newly provided access to water supply for just over 15 million persons and sanitation for 6.8 million persons, exceeding CPS targets47. Working in both relatively prosperous states and LIS/SCS, these operations demonstrated successful community-based, participatory, demand-responsive approaches and provided the basis for scaling up activities, including through building institutional capacity of state departments, sector institutions, local governments, and communities themselves. Of particular note, is the World Bank support in Uttarakhand, which contributed to establishing 24/7 water supply and received the Right to Information award for good governance and transparency. An independent impact assessment found 98 percent user satisfaction and 90 percent sustainability for this operation. The World Bank also committed to a US$1.5 billion PforR operation in support of the Swachh Bharat Mission (SBM), an initiative championed by the Prime Minister to eradicate open defecation by 2019. The operation incentivizes behavioral change. While disbursements have not been forthcoming owing to delays in appointing an independent verification agency, the WBG has been prominent in providing technical assistance, developing a knowledge portal for exchange of good practices, and supporting innovative mass awareness campaigns involving Bollywood stars. State-led assessments in target states for the SBM support operation assessed that 28,908 Gram Panchayats have achieved ODF status; this achievement is beyond the CPS target of 3,000, but is not independently verified and not associated with disbursements under the World Bank-financed PforR. 47The CPS results matrix further broke down expected results for sanitation to improvements for 5 million rural and 1 million urban residents; the actual breakdown achieved was 6,531,000 persons in rural areas and 241,000 persons in urban areas. The exceeding of the overall target is the basis for an assessment of achieved for this indicator. 88 2.4 Agriculture Outcomes Government Strategic Sought by Status CPS Indicators Status Objective CPS Raise agricultural productivity Increased Achieved Increase in yields for beneficiary Mostly to 4% per annum agricultural farmers in paddy, wheat, & sugarcane achieved productivity Strengthen irrigated water in targeted Increase in milk production for Achieved resource management areas beneficiary farmers 14. WBG engagement in the agriculture sector focused on improving service delivery and promoting better use of natural resources. The World Bank financed operations in five states to rehabilitate irrigation systems, particularly community tanks, and to develop institutions at community and state levels to manage and maintain these systems. These operations in aggregate led to over 2 million ha of land having improved irrigation, and corresponding improvements of productivity, by the end of the CPS period. Agricultural productivity for wheat in Uttar Pradesh, the primary wheat growing area impacted by WBG activities largely increased before the CPS period, with only marginal changes in the past five years. Paddy productivity increased by over 50 percent. IFC investment and advisory services reached 522,483 farmers. About 217,756 farmers were supported by IFC Advisory Services, 100,000 of whom improved their productivity and water usage, leading to 130,000 ha of land sustainability managed and 191 million m3 of water use avoided per year and registering improvement of sugarcane yields by between 16 percent and 49 percent. Through a PPP project, IFC also helped the Government of Odisha in developing last-mile rice storage infrastructure in remote parts of the state. Successive operations in Uttar Pradesh have led to over 120,000 ha of sodic land reclaimed, with cropping intensity on these lands increasing from 25 percent to 206 percent. Continuing decades of work to improve watershed management, the World Bank financed operations in Himachal Pradesh (additional financing) and Uttarakhand as well as the national-level Neeranchal Watersheds Project to provide technical assistance to nine Indian states. The Himachal Pradesh project has exceeded targeted productivity gains, but the latter two operations have not achieved results during the CPS period owing to substantial implementation delays associated with project design not fitting with subsequently launched national program on watersheds. WBG activities led to intensification and higher productivity while also employing approaches that contributed to reducing the burden on scarce groundwater resources, particularly the use of tanks. They also introduced more climate-resilient practices and diversification of crops, particularly towards the end of the CPS period. At the same time, owing to political economy issues, the WBG operations only marginally addressed other longstanding issues in the sector, such as inefficient use of water owing to subsidized electricity and market distortions associated guaranteed food prices. 15. WBG operations and analytical work contributed to increasing farmers’ share of value chains. The WBG also financed operations in Maharashtra, Assam, and Rajasthan to strengthen farmers' technical knowledge, market intelligence, and market networks to support diversification and intensification of agricultural production aimed at responding to the market demand. In Maharashtra, the World Bank- financed project contributed to farmers increasing their average share of wholesale prices for eight out of nine products (in six cases by over 20 percent) and their share of retail prices for seven out of nine products (in six cases by over 20 percent); in Assam productivity increases occurred for all six commodities tracked and exceeded targets in four cases. While operations contributed to achieving productivity increases for paddy, World Bank-supported operations promoted diversification to other, higher-value products, such as pulses, which in some cases are less water intensive. World Bank ASA in agriculture, particularly the 2014 Accelerating Agricultural Productivity Growth study, provided an evidence and 89 analytical base for agricultural policies that have been promulgated by the present government; the study highlighted issues related to the transition from past policies and institutions focused on food self- sufficiency, such as Minimum Support Prices, to promotion of sustainable agricultural growth, including diversification and better-performing markets. 2.5 Environmental Protection Government Strategic Outcomes Status CPS Indicators Status Objective Sought by CPS Improve management of Improved Partially 160 million liters per day of Partially natural resources by environment achieved untreated wastewater prevented achieved introducing regulation to protection and from entering the Ganga river limit water pollution, biodiversity improving sewerage conservation Additional 500,000 hectares Achieved treatment system, and brought under enhanced protecting biodiversity biodiversity protected area management 16. WBG-financed operations contributed to the formulation of national policies concerning environmental management and implemented approaches to protect the environment and biodiversity in select sites. Notwithstanding implementation challenges, the Integrated Coastal Zone Management Project (ICZM) achieved overall success in carrying out measures to preserve coastal areas in Gujarat, West Bengal, and Odisha, bringing over 110,000 ha under enhanced biodiversity management. The ICZM’s achievements in turn contributed to the formulation of India’s National Coastal Mission, which is part of the National Plan for addressing climate change under the country’s Intended Nationally Determined Commitments (INDC). The Capacity Building for Industrial Pollution Management Project supported the development of Guidelines for Remediation of Polluted Sites (issued 2015); the establishment in 2015 of a waste management information system, covering all of India, for processing authorizations for hazardous waste, solid waste, bio medical waste, and electronic waste; and draft Rules for Remediation of Polluted Sites, which are now under review by expert committees and are expected to be issued by March 2018. The World Bank also supported a targeted local landscapes approach in parts of four states, which established new models of localized balanced management and conservation considering communities’ various uses and needs of their environments, resulting in 590,000 ha being brought under enhanced biodiversity management, exceeding the CPS target. Overall, India has seen increased attention to preserving biodiversity, with 44 new protected areas declared by the GoI during the CPS period. 17. WBG support for wastewater treatment on the Ganga River encountered substantial delays, though there has been effective support in other parts of India. Major investments to be financed under the US$1 billion Ganga Basin rejuvenation project are yet to be made despite the operation being in effect for six years. The reasons for delay were slow operationalization of the institutional framework and staffing; delays in the selection of investments and procurement process; and obtaining decisions required from governments at central, state, and local levels in a coordinated manner. The operation nonetheless supported institutional improvements in setting up the National Mission for Clean Ganga (NMCG) and the State Level Program Management Groups. It also helped develop design-build-operate-transfer contracts for the first time for sewage treatment plants and wastewater networks in the participating states as well as use of the so-called hybrid annuity model to crowd in private sector financing. IFC has been a transaction adviser for two hybrid annuity agreements which were concluded at the end of CY2017 and the central government has approved four more large investments to be financed by the World Bank under this modality. At present, there is 34 million liters per day (MLD) of wastewater treatment capacity 90 resulting from World Bank financing. A further 18 contracts awarded and under implementation with World Bank financing will create 208 MLD of wastewater treatment capacity by 2020. Outside of the Ganga basin, the ICZM financed installation of a 91 MLD wastewater treatment facility in Jamnagar, Gujarat, and a 10 MLD plant in Digha, West Bengal. The Jamnagar plant was the first case of ‘technology neutral’ bid for sewage treatment plants on a design-build-operate-transfer basis in India and its bidding documents were used as a model by several other agencies. The operator is now paying the municipality for supply of sewage at INR 20 million per year while selling the treated water, with required transmission infrastructure created at their own cost. 2.6 Greenhouse Gas Emissions Development Challenge Outcomes Sought by CPS Status CPS Indicators Status Lack of awareness about energy Reduced GHG emissions Achieved Additional 1.5 million Achieved saving technologies and through energy efficiency tCO2e GHG emissions measures to reduce ozone and renewable energy reduced per year by depleting substances production 2016 18. The WBG has helped reduce greenhouse gas (GHG) emissions through multiple activities supporting renewable energy generation. India has been carrying out an ambitious program to increase renewables, with installed capacity of hydro, biomass, and solar power increasing by nearly 50 percent from 223 GW in 2013 to 327 GW in 2017. The WBG supported the GoI’s renewable energy targets through global sector knowledge, long-term direct financing, credit enhancements, mobilization, and advisory support. IFC helped build new private sector corporates from the ground up; supported key, innovative, proof-of-concept interventions including PPPs and green bonds; facilitated introduction of best practices in corporate governance, E&S, and legal documentation; and brought in new investors through mobilization. IFC investee companies were responsible for installation of over 4.5 GW of renewable energy capacity during the CPS period, 8 percent of total installed renewable energy capacity in the country. The World Bank contributed to achieving the CPS target of an additional 1.5 million (tCO2e) GHG emissions reduced per year through financing for the Rampur Hydropower Project, which reduced 1.41 million tCO2e annually. In addition, working with local lenders, IFC projects contributed to 2.2 million tCO2e GHG per year reductions in FY16. IFC’s PPP advisory helped states of Gujarat and Odisha develop first-of-its-kind rooftop solar programs, demonstrating viability and contractual models and helping the central electricity regulator draft net metering regulations, which subsequently paved the way for rooftop solar projects around the country. IBRD in turn financed the Grid-Connected Rooftop Solar Program beginning in 2016 to increase availability of debt financing, de-risk to mobilize commercial financial flows, and build capacity across the solar PV industry. To expand availability of long-term credit lines for renewable energy financing, IFC partnered with local financial institutions to extend green credit lines totaling US$300 million. IFC also issued the first green offshore rupee bond in August 2015 for INR 3.15 billion (US$50 million equivalent), listed on the London Stock Exchange, to mobilize clean energy investment. IFC was engaged in bringing corporate leaders together under the Carbon Pricing Leadership Consortium (CPLC) and the Sustainable Housing Leadership Consortium, where large Indian conglomerates pledged internal carbon prices and made voluntary commitments to achieve greening of their housing portfolios. IFC also invested in a 100 MW solar plant implemented by FRV Solar in 2017, which was also IFC’s first green project bond globally in the infrastructure sector. Finally, IFC and the World Bank together helped the Madhya Pradesh government set up the largest single-site solar power project in India, attracting private investments of about US$750 million, where the rigorous structuring of the project risk-sharing mechanism led to intensely competitive bidding that resulted in the lowest ever solar tariff bid—some 33 percent lower than the previous low—in India in 2017. 91 19. The WBG also supported energy efficiency improvements. IFC invested in projects promoting industrial energy efficiency spanning cement, automotive, and other industries while the World Bank contributed to energy efficiency through a partial-risk-sharing facility and an operation to rehabilitate coal-fired plants. IFC invested in several green building projects with multiple clients and launched the Excellence in Design for Greater Efficiencies (EDGE) rating system for energy efficiency. IFC also invested US$75.8 million in India’s first green bonds issued by Punjab National Bank Housing Finance Ltd. to help construct green residential buildings, to facilitate development of affordable housing, and create more jobs. Finally, IFC’s PPP advisory services assisted the municipal corporations of Jaipur, Bhubaneswar, and subsequently four other cities in Odisha to convert previous inefficient, high-maintenance, and failure- prone streetlights to modern energy-efficient LED lighting in these cities, leading to expected energy savings of more than 80 percent and expected fiscal savings of over US$1 million per year. 3. Inclusion Engagement Area 3.1 Access to Electricity Government Strategic Outcomes Status CPS Indicators Status Objective Sought by CPS Universalize access to Improved Partially Additional 300,000 of connections to Not electricity, focusing on access to achieved Below Poverty Line households by achieved electrification of all villages electricity in 2017 in North Eastern Region targeted states Increase household access to Additional 220,000 households with Partially clean and environmentally off-grid connections achieved sustainable energy 20. WBG operations supported increased generation and access to power, though specific results were not met in the CPS period. India overall made significant strides to ensuring access to electricity, with the number of villages lacking electricity decreasing from over 18,000 in 2015 to under 4,000 as of 2017 (or 99.3 percent of villages tracked; though the benchmark for having access was a minimum of only 10 percent of households as well as public facilities). Support for the GoI’s efforts, particularly the 24x7 Power for All Program, was one of the six key priority areas of cooperation agreed between the Indian Prime Minister and the World Bank President in June 2014. Through seven World Bank-financed operations active during the CPS period, the WBG improved access to power and supported clean energy generation though increased connections, especially in the Northeast, did not occur owing to preparation of the corresponding World Bank-financed operation taking longer than anticipated in the CPS (due to meeting readiness criteria); IFC operational targets for off-grid connections were met, but the CPS presented these as households whereas the underpinning operation’s indicator was for individuals and hence achievement was lower. Notwithstanding these issues, WBG-financed projects directly resulted in addition of 412 MW of greenfield hydropower capacity and rehabilitation and efficiency improvement of 215 MW thermal-fired generation capacity. IFC’s Lighting Asia (India) advisory program led to 10 million persons receiving access to improved services from off-grid lighting. Additionally, IFC enabled access to off-grid connections for 48,441 households through mini-grids and distributed biomass power generation in Bihar. NLTA in the sector focused on rural power supply institutional development after corporatization and unbundling and project implementation support. In particular, the post-unbundling support helped Jharkhand and Manipur undertake a sector diagnostic exercise that resulted in quick wins and a road map for institutional development. 92 3.2 Health Care Government Outcomes Strategic Status CPS Indicators Status Sought by CPS Objectives Improve Strengthened Mostly Increase the number of vulnerable people covered Partially efficiency of public and Achieved under government-sponsored health insurance achieved health delivery private health systems delivery systems Increase the number of people reached in Achieved supported private health facilities Increase the number of public sector hospitals Partially that achieve entry level pre-accreditation Achieved 21. WBG-financed operations contributed to strengthening health systems in select states and supported successful national programs to lower incidence of HIV/AIDS and tuberculosis. The World Bank supported improving efficiency, quality control, and better outreach to vulnerable groups in public health care systems in Karnataka, Tamil Nadu, and Uttar Pradesh (with operations in SCS Nagaland and Uttarakhand launched in 2017). The operations led to system improvements such as an integrated health management information system (MIS) in Tamil Nadu, which has strengthened monitoring, planning, and budgeting and quality enhancements leading to national accreditation of hospitals in Uttar Pradesh. In particular, the World Bank-financed operations led to entry-level pre-accreditation of 16 public sector hospitals in the three states in addition to the six baseline hospitals; in addition to formal NABH accreditation, World Bank supported health systems improvements that contributed to over 100 hospitals receiving Kaya Kalp cleanliness certification. These system improvements in turn contributed to improved health outcomes, including a reduction of maternal mortality rates of over 25 percent in the three targeted states over the CPS period. At the same time, World Bank support to national programs transitioned from funding inputs for the delivery of health services to funding systemic reforms, switching the focus to results and leveraging government resources. For instance, the World Bank’s support for addressing HIV/AIDS involved innovative performance-based contracts with nongovernmental organizations for preventive interventions among high-risk groups, a model that has been replicated in other countries, notably Nigeria. The World Bank supported the modernization of the treatment regimen used by the Government for tuberculosis through a set of disbursement-linked indicators (DLIs). 22. IFC played a catalytic role through investments and PPP advisory engagements in health care facilities and health insurance programs. IFC’s investee companies ran health care facilities, which are estimated to have served 19 million patients, exceeding the CPS target of 9 million patients reached in supported private health facilities. IFC pioneered several PPPs in health care, notably India’s first successful tertiary care hospital PPP project in Bihar and the first successful medical college and hospital in India’s Northeast, in Shillong, targeted specifically toward below poverty line (BPL) patients from low - income and underserved areas. IFC also supported hospitals in Jharkhand, Odisha, and Andhra Pradesh. Additionally, 944,706 people benefitted from digital health payments in Bihar as a result of IFC advisory interventions in collaboration with the Government of Bihar, intended to reduce payment delays and help public health workers focus on delivering health care services rather than administering payments. Lastly, IFC’s venture capital investee companies reached 1.2 million patients through investments in health care start-ups. 23. The WBG contributed significantly to the expansion of health insurance systems through a combination of operations in Karnataka and Meghalaya and broader knowledge exchanges. In Karnataka, 80 percent of the state’s population, or more than 30 million people, were provided health 93 insurance coverage from scratch with support from the Karnataka Health System Development and Reform Project. By reducing vulnerability to catastrophic health expenses and consequent impoverishment, there was a steep reduction in mortality and out-of-pocket payments among beneficiaries of the Vajpayee Arogyashree (VAS) insurance scheme in the state. IFC and the World Bank provided advisory services to the Government of Meghalaya, which in turn expanded health insurance coverage to the entire population of the state while deepening the benefit package. This achievement enabled 800,000 people a year to access high-quality services including preventive care, outpatient services, hospitalization, and long-term follow-up services in hospitals across India. Aspects of this model are being taken up by other states, notably in Uttarakhand, where there is a new World Bank lending operation approved at the end of the CPS period that is supporting these reforms. The World Bank supported and coordinated the Forum of Government Sponsored Health Insurance Schemes in India which provided knowledge exchanges and capacity building among 18 national and state programs, emerging as a unique practitioner network that is now being replicated in Nigeria with World Bank support. Through its work in Karnataka and promotion of knowledge sharing the WBG made a contribution to the large overall GoI effort to expand health care coverage, which has resulted in more than 300 million people living below the poverty line becoming covered by Government Sponsored Health Insurance Schemes. 3.3 Nutrition Government Outcomes Status CPS Indicators Status Strategic Objectives Sought by CPS Reduce under- Improved child Mostly Increase in number of centers Achieved nutrition among nutrition achieved implementing community-based activities children ages 0–3 delivery systems to improve infant and child nutrition from 40% (2005/06) in targeted to 27% states Increase in number of mothers who receive Mostly counseling on child feeding practices achieved Increase in number of households with Mostly incomes below poverty who have access to achieved community managed nutrition centers 24. The WBG effectively supported the GoI’s efforts to address the country’s nutrition challenge, though much progress remains to be made. National survey data from 2005/06 and 2015/06 show a reduction of the prevalence of undernutrition among children under five years from 42.5 percent to 35.7 percent, respectively.48 WBG support was primarily through the Integrated Child Development Services (ICDS) Systems Strengthening and Nutrition Improvement Program (ISSNIP) and through livelihood projects, the latter promoting community-level nutrition efforts. ISSNIP encountered implementation challenges but substantially improved performance after a late 2015 restructuring. The restructured project shifted focus toward behavioral change in beneficiaries as well as targeted institutional reforms. ISSNIP further contributed to the phased rollout of a mobile-technology-based monitoring system in 100,000 Anganwadi Centers (AWCs) and community-level activities of better quality and intensity in eight states. Over 350,000 AWCs are implementing community-based activities to improve infant and young child feeding practices (exceeding the CPS target), and the number of women in project districts who report receiving counseling on nutrition practices increased from 0 percent in 2015 to 39 percent in 2017 (just below the target of 40 percent). With respect to the livelihood projects, a change in government 48Note that this metric differs slightly from the GoI’s objective as stated in the CPS Results Framework, that is, a reduction for children ages 0–3 from 40 percent to 27 percent; data for this age group are not available. 94 approach to have local community-managed nutrition centers folded into AWCs meant that the third main results indicator was not tracked in the latter half of the CPS. Nonetheless, in the states of Andhra Pradesh and Telangana alone 725,000 pregnant and lactating women received one full meal per day through AWCs, a service that had previously been the main function of the community-managed nutrition centers. 3.4 Education Government Outcomes Strategic Status CPS Indicators Status Sought by CPS Objectives Achieve universal Improved Partially Increase enrollment in Grade 9 and 10 from 28 Mostly access to secondary access and achieved million to 40 million achieved education quality of Improve the quality education Increase the graduation rate from 74% in 2010 Not of education at all to 88% in 2017 achieved levels Increase gender parity index in secondary Achieved schools from 94% in 2010 to 98% in 2017 25. The WBG provided support to major government programs that improved access to education. The WBG financed major operations to support respective GoI primary and secondary education programs to improve access and quality. Financial and technical support to activities under the national program for secondary education, Rashtriya Madhyamik Shiksha Abhiyan (RMSA), included support for new and upgraded schools, especially in underserved areas, outreach to communities, and better learning materials and teaching. Direct project beneficiaries are youth in grades 9 and 10, ages 14–16, who have completed elementary education. RMSA’s efforts increased enrolment of students in secondary education (grade 9 and 10) from 28 million in 2012 to 39.2 million by 2017 (just under the CPS target of 40 million). However, there was disturbing decline in the gross graduation rate from 74 percent in 2010 to 69 percent at the end of the CPF period, below the CPS target of 88 percent. The decline was apparently driven by fewer students taking the grade 10 examination after 9th grade which in turn appears to be driven by a combination of students electing to go to other options such as open schools or vocational training, or unpreparedness of larger numbers of students. A result of improved access was the entry of more students from disadvantaged groups which may have negatively affected the graduation rate. The Gender Parity Index (GPI) in secondary schools across India increased from 94 percent in 2010 to 102 percent in 2017 against a CPS target of 98 percent. Access also improved in elementary schools. Between 2012/13 and 2015/16, the Net Enrollment Ratio (NER) (upper primary) improved by 10 percentage points. During the same period, retention rates (elementary) improved from around 80 percent to 84.2 percent, and transition rates from primary to upper primary level improved from 86.7 percent to 90.1 percent. There also has been a marked improvement in the inclusion of various social groups under the Elementary Education Project (Sarva Shiksha Abhiyan, SSA). As of 2015/16, the enrollment share (elementary) of Scheduled Caste (SC), Scheduled Tribe (ST), and Muslim students stood at 19.8 percent, 10.4 percent, and 13.8 percent, respectively, which is more than their proportionate share in the overall population. The World Bank also supported the government in its development of the Shagun portal, which is being used to generate quantitative analysis as well as normative insights on various programmatic interventions. Lastly, IFC’s venture capital investee companies reached 262,000 students through investments in education technology start-ups. 26. WBG operations aimed to improve quality of education, but success was mixed. The GoI took active steps to improve focus on quality toward the end of the CPS period, including legislative changes to focus on learning outcomes and signaling its intention to participate in the Program for International 95 Student Assessment (PISA) to benchmarks such outcomes. The WBG supported the Government’s emphasis on quality, notably through work on teacher training and performance incentives in its results- based financing (RFB) operations supporting elementary and secondary education programs. The Shagun portal developed with World Bank support also provides a vehicle to showcase state-level innovations and best practices that are driving improvements in performance and progress under SSA and tracks state- level performance and progress against key performance indicators. However, the decline in graduation rates to Grade 10 as well as tests of competency levels in earlier grades show that learning outcomes continue to lag 3.5 Social Protection Government Strategic Outcomes Sought by Status CPS Indicators Status Objectives CPS Implement direct cash transfer Increased coverage of Achieved Increase in coverage of Achieved for major subsidies and welfare- social protection program beneficiaries in related beneficiary payments programs in targeted targeted districts states 27. The WBG contributed to a strong GoI push to utilize Direct Benefit Transfers (DBTs) at state and national levels. The ecosystem for DBTs has been vastly enhanced in recent years owing to reforms undertaken by the GoI, particularly the opening of 283 million bank accounts under the Prime Minister’s People Money Scheme (Jan Dhan Yojana, PMJDY) and issuance of a unique identification number (Aadhaar) to over 90 percent of India’s population. As of 2017, more than 140 GoI schemes utilize DBTs, with more than INR 2,900 crore (US$446.2 million) in benefits transferred directly to beneficiaries through DBT in 2017. World Bank support for DBT cells in Jharkhand and Odisha contributed to accelerating direct social pension payments for elderly, disabled, and widows; in Jharkand alone more than 725,000 pensioners receive benefits directly in their bank accounts. Although attribution is indirect and the operation has been slow to disburse owing to delays in procuring civil works, the Bihar Integrated Social Protection Strengthening Project was successful in financing technical improvements which contributed to increased coverage by social protection programs as measured by a 41.6 percent increase in the number of beneficiaries of the three major programs in the state. In addition, 944,706 people benefitted from digital health payments in Bihar as a result of IFC advisory interventions. Finally, the World Bank provided technical assistance to the Ministry of Rural Development to use the national Socioeconomic and Caste Census to set up a social registry to help manage and deliver benefits to Rural Development beneficiaries directly and efficiently. 3.6 Rural Livelihoods Government Strategic Outcomes Sought by Status CPS Indicators Status Objectives CPS Create economic Enhanced rural Achieved Additional 1.3 million Achieved opportunities to improve livelihood supported poor households rural livelihood of poor opportunities in report a minimum of 20% households targeted states increase in income by 2017 28. The WBG’s rural livelihoods portfolio achieved strong impact in improving incomes. WBG- financed operations at national and state levels substantially increased the rural poor’s asset base and improved skills; they also developed social capital reflected in the growth of self-help group (SHG) federations and greater female participation in local councils. Nearly 1 million new SHGs composed exclusively of women were mobilized (three-quarters of which were in LIS, where previously mobilization 96 had been low) and over half of these were linked to banking services. An estimated nearly 1.4 million households from Madhya Pradesh, Bihar, and Odisha alone demonstrated income improvements in excess of a 20 percent increase. Surveys indicated that project-supported SHGs in Tamil Nadu showed 32 percent greater skilled employment, higher savings rates in Andhra Pradesh and Bihar, and better food security and sanitation outcomes in Bihar when compared to other rural poor. The last years of the CPS period saw SHGs’ increasing maturity allow for leveraging of financing from formal institutions, reflected in results under Objective 3.7. The GoI has embraced the use of livelihoods programs, increasing annual financing for such programs by 50 percent in the final year of the CPS. 3.7 Access to Finance Government Outcomes Status CPS Indicators Status Strategic Objectives Sought by CPS Improve financial Increased Achieved Additional 3.5 million households with access to Achieved services access to formal financial services financial Provide access to services in Additional 28 million loans provided to micro, Achieved banking services targeted small, and medium enterprises in targeted states to 90% of Indian states (including 1.0 million to female-owned households microenterprises) Additional 750,000 payment accounts opened Achieved 29. WBG operations improved access to finance in rural areas, supporting major GoI efforts. India witnessed impressive growth in access to finance in the past five years. As noted earlier, the PMJDY program provided banking for a large number of previously unserved citizens, with official data showing 99.7 percent of households across India having access to banking services by the end of the CPS period. WBG livelihoods operations contributed to the uptake of formal financial services, with 5.7 million new households involved with WBG-financed operations through some half a million SHGs coming to have access to such services during the CPS period, exceeding the CPS result target. Nearly 84 percent of the new households accessing financial services were from LIS/SCS. IFC contributed to the continued development of microfinance institutions (MFIs), a particularly important task following a crisis in the sector in 2010/11. Through systematic mapping, a series of selective investments, and advisory assistance to investees and policy makers, IFC contributed to strengthening industry standards in terms of responsible lending, corporate governance, risk management, and E&S performance. IFC’s work with credit bureaus also helped alleviate systemic risk in the sector and created a database of more than 100 million low-income women improving their access to formal finance. IFC further invested around US$234 million across six MFIs in the CPS period. IFC investee MFI clients are responsible for about 50 percent of the outstanding loans in the sector in India at the end of the CPS period and reach more than 30 million woman clients. With IFC support, all IFC investee MFIs have transformed or are transforming into banks/specialized banks, which will help them offer small, unsecured loans to more rural and semi-urban borrowers and broaden the range of financial services they can offer to underserved customers, especially women, across the country. Six of the ten entities that received approval in principle from the Reserve Bank of India to set up small finance banks are IFC MFI clients. MFIs receiving advisory and investment services from IFC provided loans to 85 million micro, small, and medium enterprises (MSMEs), which is more than triple the CPS target. Through its Banking on Women program, IFC recently piloted a US$50 million gender bond with Yes Bank, to be used exclusively to lend to women-owned businesses. 97 3.8 Disaster Risk Management Government Strategic Outcomes Sought by Status Indicators Status Objectives CPS Strengthen natural disaster Enhanced disaster Achieved Three states have operational Achieved management/resilience risk management Early Warning Dissemination system Systems 30. The WBG helped build capacity to address natural disasters, particularly in coastal areas. The WBG financed operations in the states of Odisha, Andhra Pradesh, Tamil Nadu, and Pondicherry to develop local-level early warning dissemination systems across over 500 coastal communities to help manage the impact of cyclonic storms. The operations also provided for building of emergency cyclone shelters and reinforced housing, providing, in the case of Tamil Nadu and Pondicherry, access to 75 percent of targeted coastal settlements, which previously had no such shelters. Notwithstanding a few cases where lack of adequate community participation and operation and maintenance mechanisms have led to suboptimal utilization of assets, there has been overall improvement in resilience in areas targeted by World Bank-financed operations. The WBG also financed flood recovery and resilience efforts in the Kosi Basin in Bihar, providing for greater resilience of over 55,000 houses, 69 bridges, and 250 km of rural roads, as well as embankment strengthening during the CPS period. Cross-Cutting Themes 31. The CPS’s focus on cross-cutting issues of improving governance, environmental sustainability, and gender equality was maintained throughout the CPS period. Governance in sectors was prominent across the majority of World Bank operations, with substantial support provided to developing institutional capacity, M&E systems (for example, the Shagun system in the education sector), and transparency and incentivizing public sector performance, particularly with the increased use of RBF instruments (such as in the skills sector operations). The WBG provided substantial fiduciary capacity support through training for operational staff and the private sector, particularly through massive open online courses launched in 2013 to provide certificates in public procurement and contract management (developed first for India but used worldwide; over 33,000 persons from India had enrolled during the CPS period). Ongoing fiduciary support led to preparation of state-level public financial management operations, two of which were initiated during the CPS period. Environmental sustainability was a key focus of safeguards support (see paragraph 48) as well as explicitly objective 2.5. Mitigation and adaptation to climate change were prominent in agriculture (promotion of less-water-intensive practices and better watershed management), disaster risk management in coastal areas, water (management of groundwater), and particularly power, where the World Bank and IFC combined to provide substantial support to the GoI’s renewable energy agenda. With respect to gender, many World Bank-supported operations, particularly in the livelihoods, skills, and education sectors, as well as IFC’s support for MFIs, led to major results in empowering women, reflected in the results conveyed earlier with respect to greater participation in technical skills training, access to secondary education, improved women’s control and benefit over livelihoods, and local-level political participation. Consideration of gender was mainstreamed into operations through a process of screening to ensure corresponding analysis ex ante and the preparation of activities to address gender gap and corresponding results indicators. By the end of the CPS period, this process was applied rigorously to all operations under preparation. A social inclusion and gender ASA cluster was established in 2014 to identify knowledge gaps and provide analysis for more gender-sensitive and inclusive operations. The portfolio included several operations with a strong gender focus, notably the rural livelihoods operations as well as the Tejaswini project to support 98 young women with skills and social support; operations on transport included steps to provide for safer conditions for women. 32. IFC helped expand long-term investments in key productive sectors of the economy by supporting the GoI develop a corporate bond market. In 2013, IFC launched the Masala Bond Program, an offshore rupee-denominated bonds program to attract much-needed international investor funding for projects in India. IFC worked with the Government, regulators, banks, and legal firms to develop and launch the bonds program; went through a series of issuances to build and extend the yield curve; laid the regulatory approval foundation and processes; and established the modality of the legal documents. The success of the bond program prompted India’s central bank to permit local companies to issue rupee- denominated bonds in offshore markets. In March 2016, IFC launched an innovative Masala Uridashi bond to mobilize Japanese savings for India’s private sector. IFC also issued a first-of-its-kind 15-year Masala bond, creating an offshore rupee market yield curve that stretches from 3 to 15 years, deepening the market and making it more resilient. As of May 2017, Indian entities have already issued US$2.9 billion equivalent in Masala bonds, while IFC has issued an additional US$1.9 billion equivalent in Masala bonds. Going forward, potentially, billions of dollars could flow into Indian businesses in the form of masala bond issuances, and this intervention has helped demonstrate a unique path from overseas institutional investors to the Indian private sector. The Reserve Bank of India, while announcing its intention to promote further development of the corporate bond market, cited the contribution of IFC’s development of the offshore bond program in paving the way.49 In parallel, IFC helped develop five year onshore rupee- denominated ‘Maharajah’ bonds that have been successful in raising the equivalent of nearly US$100 million till date. III. WORLD BANK GROUP PERFORMANCE Overall Performance 33. The overall WBG performance in designing and implementing the CPS is assessed as Good. The design corresponded well to GoI development objectives before and after the 2014 change in government and had a clear line of sight with WBG corporate objectives of ending extreme poverty and boosting shared prosperity. The establishment of targets and supporting measures made the shift toward expanded engagement in LIS/SCS realistic. Each CPS objective was backed by a combination of operations at various levels of government and in most cases substantial analytical work. The results matrix with minor exceptions set suitably ambitious and attributable targets. Implementation was overall effective, with substantial results in many sectors. World Bank operations contributed to innovation and new good practices in a range of areas, from auctions yielding low-cost solar power generation to improving health care and social safety net coverage. The World Bank had a mixed record in achieving impact through financing small proportions of several large GoI centrally sponsored schemes (CSS), such as the PMGSY rural roads program, national elementary and secondary education improvement programs, and the Swachh Bharat mission to end open defecation. Though these tended to be large operations for the World Bank; the level of financing was well under 10 percent of overall GoI outlays, which limited the World Bank’s impact. At the same time, engagement with these programs provided a platform for policy dialogue and in some innovation, such as in contracting methods for construction of rural roads. The World Bank’s portfolio performance was overall satisfactory with good management of risks though disbursement ratios experienced only minor improvement and remained lower than the World Bank average. IFC was 49 https://www.rbi.org.in/Scripts/BS_SpeechesView.aspx?Id=950. 99 able to expand engagement in LIS despite challenges associated with weaker private sector appetite for investment in these states. Design 34. The CPS was well aligned with the GoI’s development objectives. Preparation of the strategy coincided with preparation of the GoI’s 12th Five Year Plan; correspondingly, there were specific CPS objectives or cross-cutting themes such as governance and inclusion of women that targeted most of the GoI’s goals. Even in the few cases where there was no discrete CPS objective corresponding to a GoI goal, the WBG was responsive to demand, such as in providing extensive NLTA for improving the business climate. 35. The CPS established a line of sight with WBG goals of ending extreme poverty and promoting shared prosperity primarily in terms of geographic focus. As one of the first WBG strategies produced after formal adoption of the twin goals, strong poverty and macroeconomic analytics underpinned its formulation, particularly in articulating scenarios for medium-term and longer-term development to 2030. Analogous programmatic ASA continued to inform implementation throughout the CPS period. The CPS’s focus on the LIS/SCS, where the majority of India’s poor reside, was backed by an explicit target to increase the proportion of commitments from 11.9 percent to 30 percent to these states and a robust NLTA targeted to these states to build capacity, conduct diagnosis, and facilitate operational engagement. Within this geographic focus, operations were initiated across a broad range of sectors with no discernable difference in terms of sectors for operations in LIS/SCS versus in other states. Operations in LIS in only a few cases had less complex design than sector operations in other states but this was driven by length of engagement more than capacity of the state. For instance, the Jharkhand livelihoods operation approved at the end of the CPS period had a less complex design than operations in more developed Tamil Nadu, but also in fellow LIS Bihar, where there had been many years of engagement. In general, the India World Bank program sustained activities across a very broad range of development challenges. Selectivity occurred not by sector but rather in promoting feasible reform agendas within sectors and within states, e.g. shifting towards promotion of renewable energy generation. IFC’s program similarly had a focus on LIS/SCS while being driven by an assessment of development gaps where the private sector has a key role and focused its activities on where it could achieve most impact, for instance in supporting industry standards for microcredit institutions. 36. The design of interventions to achieve objectives effectively considered country circumstances, utilized a wide range of instruments, drew on experience, and sought to leverage the whole of the WBG. The CPS sought to achieve impact through a work at national and state levels. Support for national programs, such as with respect to the road network, skills development, primary and secondary education, and livelihoods, was complemented with state-level projects where much of the implementation of service delivery occurs. The approach reflected lessons learned from the preceding CAS that emphasized the importance of seeking to leverage CSS together with state interventions, a continuing challenge for development assistance in India’s large federal system. For several objectives, notably in the rural water and sanitation, livelihoods, and agriculture sectors, there were multiple separate state-level operations while in the case of nutrition there was concurrent focus on several states within a single operation, such as with respect to nutrition and livelihoods. Peer learning was promoted across these operations to take advantage of varied state experience. At the same time, operations largely implemented through states under a national-level program, such as in nutrition, education, and sanitation sectors, were challenging for implementation support; such operations largely were compelled to rely on centralized systems for monitoring. IFC similarly had suites of lending and advisory engagements 100 for the objectives of increasing private sector investment in LIS and increasing access to finance. Finally, the CPS design drew on lessons from the preceding CAS, focusing on synergies between IFC and the World Bank. Both institutions contributed to achieving results under 7 out of the 19 objectives in the strategy that provided a basis for combined work on PPP approaches in several sectors, most notably energy and transport. The Multilateral Investment Guarantee Agency (MIGA) was not part of the strategy and not active in India although it began to explore operations at the very end of the CPS period. 37. The CPS was backed by a wide-ranging ASA program to inform operations and contribute to development of policy options for the authorities. In particular, in cases of objectives with limited lending, for example, in the urban transport and social protection sectors, substantial technical assistance programs and the effective promotion of peer exchanges amplified the impact of WBG activities. Programmatic NLTA support in LIS was critical to expanding engagement in these states, operationalizing WBG knowledge and experience from working in other contexts, and effecting the CPS shift in financing toward these states. The expectation of the CPS for impact from stand-alone analytical products to inform public debate may have been ambitious, given the GoI’s preference in several cases for ‘non logo’ work. 38. The Results Framework overall reflected WBG contributions to achieving objectives, though in some instances took an expansive view of expected impact that went beyond WBG activities. Most indicators were derived from WBG operation(s) and reflected (a) substantive contribution —albeit often relatively small given the scale of India’s development requirements — toward achieving high-level objectives rooted in GoI priorities and (b) results attributable to WBG activities. With respect to four outcomes,50 indicators reflected achievements which were not tracked by or attributable to WBG activities. These reflected rather progress in the corresponding sector, such as the number of households (persons) covered by health insurance. Results from IFC’s activities were consistent with its approach to serving as a catalyst in addition to serving as a directly attributable source financing for specific activities; for instance, it provided support to MFIs, which in turn issued 85 million loans to MSMEs during the CPS period. The PLR appropriately adjusted indicators to reflect implementation while retaining ambition for results. There were two minor issues with the Results Framework. First, there were four mismatches in wording between the CPS and the measurements provided by contributing operation(s).51 Second, the indicator chosen to measure impact on access to electricity was for an operation still under preparation (North East Power) and consequent delays meant that it was not met. In three other cases, targets were not achieved owing to delays in operations that might have been foreseen, but nonetheless there were reasonable stretch targets at the time of the CPS and subsequently the PLR.52 See the results matrix in Annex 1 for notes on specific indicators. 39. Risks were adequately identified and corresponding effort was made to mitigate them. The CPS rightly identified strategic-level risks of economic slowdown, sluggishness in promoting reform, capacity challenges in LIS/SCS (further emphasized in the PLR), and portfolio performance, especially on disbursements. The first two risks did not materialize, with growth and a motivated post-2014 government providing tailwind for WBG engagement. The challenge of shifting toward lower capacity LIS/SCS was mitigated by provision of NLTA and troubleshooting by state coordinators. At the same time, 50 With respect to outcomes 1.3 (skills), 3.2 (health), 3.3 (nutrition), 3.5 (social protection) 51 This occurred with respect to Outcomes 1.3 (skills) where baseline applies to employment after two years whereas CPS measured after one year; 2.2 (urban transport) where only five rather than 6 cities were covered by the project, 3.1 (access to electricity) where households and persons were switched, and 3.3 (nutrition) where CPS result referred to data for an age group that was not being collected. See preceding sections on these outcomes and notes in Results Framework. 52 The EDFC for Objective 1.1, completion of border crossing infrastructure under the Nepal-India Trade and Transport Facilitation Project for Objective 1.5, and the National Ganga River Basin Project for Objective 2.5. 101 notwithstanding these measures, the overly ambitious near-tripling of state-level operations in LIS/SCS was not fully met. Portfolio risks, particularly on disbursements, were addressed through increased rigor with regard to readiness, though performance remained roughly the same at the end of the CPS period. Other strategic-level risks did not emerge. Implementation 40. The WBG’s program provided expansive support for CPS objectives. Each objective was supported by multiple operations, including in most cases at both state and national levels, as well as extensive ASA. The CPS also underpinned a shift to using RBF in operations, with nine PforR operations and seven Investment Project Financing (IPF) operations using DLIs in the portfolio at the end of FY17. At the same time, there were only two Development Policy Financing (DPF) operations implemented during the CPS period owing to greater focus on improving results from implementation of programs.53 Similarly, guarantee instruments were not used owing to lack of demand. The portfolio increased substantially from FY13 to the end of FY17; the number of projects grew from 80 to 102 (of which 72 were new operations approved during the CPS period) and total net commitments increased from US$22.5 billion to US$26.4 billion (of which US$16.5 billion was committed during the CPS period). Of these commitments at the end of the CPS, US$14.6 billion was IBRD, US$11.6 billion was IDA, and US$0.2 billion was from other sources (Global Environmental Facility [GEF]). During the CPS period, India transitioned from an IDA/IBRD blend to IBRD with IDA transitional support to IBRD and graduated from IDA at the end of FY17. India continued to be the largest country in IFC’s investment portfolio, making up 10 percent of IFC’s committed portfolio in FY17. During the CPS period, IFC invested US$5.3 billion in long-term financing in India, including US$1.5 billion in mobilization. As of the end of the CPS period, IFC’s committed own account portfolio in India stood at US$5.6 billion. IFC’s committed portfolio in India has grown at a much faster pace than IFC’s average growth (compound annual growth rate [CAGR] of 5.9 percent versus 2.6 percent) with an increase in absolute terms of 26 percent comparted to 11 percent for IFC overall. 41. The CPS provided a strong platform for flexible, close cooperation with the GoI, including following the 2014 change of government. The CPS underpinned engagement across a wide range of sectors that had enduring validity over the CPS period. While a small number of operations planned in the CPS and PLR were not prepared owing to design issues or lessened client interest, there was nonetheless lending and ASA were carried out in support of every outcome. Strong cooperation was confirmed in June 2014 when Prime Minister Modi, shortly after forming a new government in May 2014, and President Kim agreed on a set of six priority areas for which the WBG would provide financing and globally informed technical support.54 WBG support for these priorities corresponded to objectives that were already present in the CPS. The 2015 PLR reaffirmed the strategic directions in the CPS while highlighting the six priorities and made minor adjustments to the results matrix. 42. The portfolio evolved to reflect the CPS’s strategic shift to LIS/SCS. Commitments mostly achieved the CPS’s goal of rebalancing the portfolio to 60 percent of commitments directly financing state- level operations, of which 30 percent would be for LIS/SCS, an increase from a baseline of LIS/SCS being recipients of 12 percent of overall commitments through state-level projects and benefitting from an estimated further 8 percent of commitments through national and multistate operations. Deployment of 53 The DPF operations were a forestry sector DPF in Himachal Pradesh in 2013 and the first of a two-part series of power sector policy loans in Rajasthan in 2016. 54 The six priority areas were 24X7 power, support for the SBM on sanitation, Ganga River rejuvenation, support for the Skill India Mission, support for Smart Cities, and support for provisioning of 500+ cities. 102 Trust Fund (TF) financing to support ASA in capacity building played a major role in expanding operational engagement in the states. At the end of the CPS period, specific LIS/SCS-level operations were 22 percent of commitments and a further 13.5 percent of commitments in national and multi-state projects proportions of which were estimated to benefit LIS/SCS55. There is a large pipeline targeting these states in coming years.56 IFC further facilitated US$1.2 billion of additional private investment in these states and 22 out of its 24 PPP engagements were in LIS/SCS. The WBG’s rebalancing to LIS/SCS compares favorably with the preceding FY09–12 CAS, which called for an analogous shift to LIS but saw little change in commitment levels. 43. There was considerable variation in the number and size of operations over the CPS period. The number of approved operations ranged from 7 (FY13) to 18 (FY17), while average size of operations varied from US$150 million in FY13 and FY17 to roughly US$325 million in FY14 and 16. The variation reflected large operations stemming from the six priorities agenda (notably the US$1.5 billion SBM operation), plus the increasing number of operations in LIS/SCS approved in later years, which were often smaller given local absorptive capacity. 44. The World Bank’s ASA was integral to achieving results across all engagement areas and cross - cutting themes of governance and climate change. A total of 207 ASA tasks were delivered over the CPS period, primarily technical assistance activities (53 percent) and economic and sector work (32 percent). In addition, the India program concluded its first ever Reimbursable Advisory Services (RAS) agreement to support the Reserve Bank of India and other RASs were under consideration at the end of the CPS. Knowledge work was brought under more systematic management with the formulation of ASA programmatic clusters at the PLR stage; over the last half of the CPS, ASA was grouped into eight major clusters. The cluster approach with corresponding programmatic reviews were strong design elements to provide for more synergy, support for key lending operations, as well as help prioritize management attention to a large ASA portfolio. Highlights of WBG ASA results were as follows: • Integration engagement area. Technical assistance focused on improving transport and energy connectivity, notably in supporting the GoI’s 24x7 Power for All program in the state of Bihar, improving the business climate, supporting state-level ease of doing business reform programs, and supporting authorities to boost manufacturing competitiveness through new data analysis and through policy dialogue. • Transformation engagement area. ASA helped understand constraints to agribusiness development and post-harvest management including through a stand-alone study and by developing a commercially viable model cold chain analysis under PPP arrangement. The WBG also worked to improve urban services delivery by helping city corporations build their capacity to deliver services and obtain financial assistance in delivering these services. ASA was also critical in both supporting India’s National Solar Mission as well as working with state authorities on climate resilience, notably in Odisha. • Inclusion engagement area. ASA was prominent in helping central and state authorities develop social support systems to ensure inclusion of disadvantaged groups such as women, STs, and SCs. Technical assistance was used effectively for improving Government Sponsored Health Insurance Schemes through financial leverage of health insurers and better capacity 5515 such operations, notably PMGSY rural roads, the National Livelihoods Support Project, Ganga River Basin Projects. 56State-level projects in LIS/SCS account for 40 percent of anticipated commitments and 61 percent of the number of operations in the FY18–19 pipeline. 103 to measure, validate, and monitor quality of care in empaneled providers. It also enabled a common approach for promoting and measuring quality of service delivery and improving the regulatory environment for health insurance programs. • Cross-cutting themes. The World Bank’s poverty and macroeconomic analytics, notably the semiannual India Development Updates, were critical both in maintaining a knowledge base for country engagement and in promoting public discourse on options for addressing India’s development challenges. A report on the (climate) Mitigation Vision 2030 assessed impacts and options for addressing emissions and the value of ecosystems services, which, combined with analysis on low carbon growth strategies, supported India’s national Mission on Strategic Knowledge for Climate Change. With respect to the governance cross-cutting theme, the World Bank also supported extensive capacity building for PFM, including procurement and contract management to strengthen state systems; this engagement led to two PFM support operations initiated at the end of the CPS with others in the pipeline. 45. NLTA played a critical role in effecting the shift to more engagement in LIS/SCS. Programmatic NLTA was vital in sustaining work in Bihar and Uttar Pradesh where World Bank lending was substantial but modest in proportion to their size and development needs as well as reengaging in other LIS/SCS such as Jharkhand, Chhattisgarh, and the Northeast states. Capacity building through this NLTA helped improve PFM, support service delivery across sectors to scale up national programs, improve the exchange of experience across states, and pilot management innovations. Building up an analytical base as well as engagement on capacity building in the LIS/SCS laid the ground for several World Bank-financed operations. 46. Facilitating exchange of knowledge and practices played an important role in multiplying impact within sectors. Among high profile areas of exchange was the dissemination of livelihoods approaches and strategies from Tamil Nadu and Bihar to other states such as Rajasthan, exchange of information about systems to promote direct benefit transfers. Exchanges were usually in partnership with Indian institutions and formed a small part of the overall large intra-India effort to have states and localities learn from one another. The WBG also facilitated a number of South-South exchanges with other countries. As knowledge exchange was sector driven, there were uneven methods to capturing and disseminating useful experience and no centralized system for recording all such exchanges. 47. IFC’s advisory services played an important role in complementing its investments and lending. Close client relationships helped originate advisory mandates, especially in LIS and in priority sectors of power, transport and health. In particular, IFC was selective in focusing on long-term expected transformational impacts in identifying projects and fitting with the overall strategy. For instance, it focused on sectors/subsectors where model concession agreements did not exist, e.g. health, rooftop solar, and lighting efficiency. IFC’s competencies in financial analysis, project structuring, political- economy management, process management and sector expertise were also critical to the success of its advisory services. 48. The World Bank’s portfolio performance was broadly satisfactory, though implementation challenges remained. The IEG assessed that 87 percent of the 31 operations that exited the portfolio between FY13 and FY17 closed with ratings of ‘Moderately Satisfactory’ or above on the achievement of the Project Development Objectives. Roughly a quarter of projects and commitments were rated at risk throughout the CPS period. Disbursements remained flat at US$2.3 billion on average over this period. The disbursement ratio hovered around 15 percent over the CPS period (with a high of 16.8 percent in 104 2015); the drop in the last two years is largely due to several new, large projects entering and fewer exiting projects owing to several extensions driven in part by the GoI’s preference to extend slow -moving IDA operations rather than cancel undisbursed balances.57 The portfolio experienced persistent start-up lags, with operations on average requiring 20 months to achieve 10 percent disbursement. Moreover, the application of readiness criteria for operations, including requirements that 30 percent of contracts be ready for award as of negotiations and appointment of project staff, did not significantly improve start- up times for the portfolio as a whole. At the same time, despite chronic start-up delays, project preparation funds and retroactive financing were rarely used. Regular portfolio and pipeline reviews with the Indian authorities, in some cases focused on specific sectors or states, were important to spur implementation and provide for cross portfolio learning. IFC’s portfolio remained healthy over the CPS period. 49. There were good examples of synergies between IFC and the World Bank. IFC supported the development of the infrastructure sector (particularly renewable energy), extended support for development of capital markets, and did pioneering work on financial inclusion. IFC worked with national and particularly subnational counterparts in LIS to design and implement innovative, first-of-its-kind PPP projects in various sectors such as health, infrastructure, and solar parks. IFC-World Bank synergies were particularly strong in raising financing for renewable energy, highlighted by the Government of Madhya Pradesh to set up the country’s largest single-site solar power project at record low cost. There were also important synergies in the health sector where World Bank teams worked with Indian authorities on design issues and IFC helped with transaction advice to roll out a health insurance scheme in Meghalaya. Collaboration between the IFC and the World Bank was driven by strong in-country presence of corresponding specialists working together in respective sectors. Coordination was further prompted by management attention, including “deep dive” meetings at the regional level to focus attention working together in key sectors, notably water. The WBG’s internal restructuring and transfer of IFC staff to the T&C Global Practice eased coordination, notably reflected in ASA to support business climate reforms. 50. There was strong partnership between the GoI and WBG and on ensuring adherence to Social, Environment, and Fiduciary safeguards. With regard to social safeguards, the most common issue concerned land acquisition and resettlement, especially in the transport sector, largely owing to shortcomings in timeliness of resettlement compensation. There was no major noncompliance of environmental management plans that came to notice during the CPS period, although in the case of four projects early in the CPS period several months were required to resolve issues. WBG engagement contributed to improved safeguards management; for example, greenfield hydropower projects improved practices in environmental management and engagement with communities. Environment and Social Policy and Procedures developed by POWERGRID, a long-time implementing agency for World Bank financing, have been adopted by the World Bank as a pilot for Use of Country Systems. In addition, following an Alternative Procurement Arrangements assessment under the World Bank’s new Procurement Framework, for which it was a pilot, POWERGRID was recognized to use its own procurement systems for World Bank-financed operations; other entities were under consideration for similar assessments at the end of the CPS period. Fiduciary oversight for the portfolio was proactive, including in pursuing allegations of fraud and corruption, with 12 investigations completed and issues substantiated in seven cases over the CPS period. 57In several cases, projects ran surpluses owing to rupee depreciation, but these amounts were redirected within operations rather than leading to cancelations. 105 51. The GoI proactively coordinated activities of donor agencies, including the WBG, while the country team worked to provide for complementarity technical support in sectors. With regard to operations, the GoI brokered co-financing by the World Bank and the Asian Infrastructure Investment Bank, with one operation (Andhra Pradesh 24X7) operation approved by the respective institutions in May 2017 and a further five co-financed operations in the pipeline. In addition to close work with the U.K. Department for International Development (DFID) referenced in the succeeding paragraph, there was substantive cooperation with development partners on ASA across a range of areas, most notably with the Japan International Cooperation Agency (JICA) on disaster risk management as well as technical exchanges related to freight corridors; the United Nations Children’s Fund (UNICEF) on sanitation, teacher quality, and girls empowerment; the International Labor Organization (ILO) on skills and rural roads; the World Health Organization (WHO) on road safety and countering tuberculosis; the Bill and Melinda Gates Foundation on nutrition and water; and the Tata Trust on nutrition. 52. Partnership with DFID was particularly deep and important in implementing the CPS. A DFID- financed TF for £26.5 million was established to support the FY09–12 India CPS and carried over through the first four years of the FY13–17 CPS. The TF played a major role in opening up new areas of engagement for the World Bank in areas of critical importance to India, for example, in PFM, health insurance, renewable energy, gender and social inclusion river basin management, and flood forecasting. Furthermore, the combination of analytic work with demand-driven NLTA, as supported by the TF, proved much more effective in engaging officials and policy makers in LIS and Northeast states than the World Bank’s earlier approach that had relied almost exclusively on economic reports and other purely analytic work. Over the course of its operation, the DFID TF funded about 100 discrete ASA that were linked to approximately 35 projects with commitments totaling US$5 billion in World Bank funding and an additional US$2.2 billion in government resources. The TF supported mechanisms for learning that effectively leveraged both global and Indian expertise, including international and cross-India benchmarking, peer-to-peer knowledge exchange, and operationalizing M&E systems. DFID-financed NLTA contributed to new models/methods of engagement between the center and states, both in the context of supporting specific national programs, in capacity building at the state level (especially the LIS), and in support to key central agencies. IV. LESSONS LEARNED 53. Expanding engagement in LIS/SCS requires significant time and resources. The first year of the CPS saw one LIS/SCS-specific operation approved while the successive years averaged five and a half such operations, and there is a strong post-FY17 pipeline for operations in these states. Engagement in LIS/SCS tended to require significant field presence in designing and supporting implementation. The role of World Bank staff serving as state coordinators for most LIS and the Northeast was valuable for engaging in broader dialogue to foster synergies across projects and troubleshooting for specific operations. At the same time, coordinators were limited in the role that they could play owing to the need to balance this role with major other duties such as program leader or leading multiple operations outside the state(s). There are administrative budget implications to the shift to LIS/SCS that will affect the WBG’s country program going forward. TF-financed multi-sectoral NLTA in LIS/SCS was critical for World Bank teams to build up capacity in state-level agencies and to design operations; the completion of these NLTA activities and the lack of comparable funding for capacity building going forward will make engagement in LIS/SCS operations challenging. The focus on LIS/SCS also has administrative budget implications because it tended to yield more, smaller operations; the increase from 19 to 31 state-level operations in LIS/SCS from FY13 to FY17 was the main driver of the overall increase in the number of operations in the portfolio. The pipeline for FY18–19 also has a large number of LIS/SCS operations. These capacity concerns may be 106 addressed going forward through ensuring synergies and sharing of effective approaches to implementation (such organizational structures for implementation and additional capacity provided to implementing agencies) in the design of various operations; prioritizing new operations that can build on capacity developed in preceding operations; and greater focus on ensuring that critical elements for implementation are in place by appraisal of projects, including systems and staff to handle fiduciary issues, safeguards, and monitoring and evaluation systems (particularly in cases where results require verification). 54. IFC’s efforts to create markets and promote investment in LIS/SCS similarly require extensive time and resources. Considerable work was required to identify feasible investment opportunities, create the right enablers to facilitate private sector operations, ensure capacity to handle a larger number of projects of smaller size, and respond proactively to the operational context in these states. Working with governments required extensive effort to develop capacity to handle PPPs, particularly in understanding the operating limits of the private sector and long-term contract management. Many of IFC’s financial institution clients struggled to increase branches and outreach in LIS. Maintaining a pipeline of potential investees will continue to require considerable advisory support and investment of time and resources. 55. WBG activities in states were characterized by individual sector operations with limited integration, making the sum of engagement less than the parts. The CPS rightly emphasized that focusing on state levels was critical to development effectiveness, but in implementing the strategy, the country program witnessed a proliferation of operations in sectors with less of a comprehensive approach to prioritizing states’ needs or addressing multisectoral issues. This sector-driven approach often dovetailed with counterpart incentives where individual departments sought operations limited to their respective areas. Before this CPS period, the India program utilized cross-sectoral ASA (economic reports) and policy operations to provide for synergies and underpin a broad approach in states, but lack of client interest mostly precluded their use.58 The main instrument for bringing together state-level activities was NLTA, but in effect these ASAs led to discrete subtasks with sectoral focus. Formal state-level portfolio reviews were helpful in troubleshooting and providing for synergies, though they occurred infrequently owing to the challenges of coordinating central, state, and World Bank participation. Going forward, ensuring that the sum of WBG activities is greater than the parts will require a stronger role for state coordinators, greater direct country management involvement, regular attention to state portfolios to learn lessons and build synergies, and instruments that allow for coherence in addressing state priorities, including analytics that provide a broad assessment of development challenges and hence help in prioritizing and providing for synergies in WBG activities. Given India’s size and diversity and limitations of WBG resources, there will likely be differentiation in the depth of state-level engagement, with deeper engagement in only a few states. 56. National-level operations supporting GoI CSS were generally effective for scaling up impact and engaging on policy but often had implementation challenges. These operations entailed providing a small proportion of overall financing for the CSS, often targeting certain states, whereas implementation occurred at state levels.59 WBG financing in many cases successfully sought to provide incentives for more local flexibility and performance. These operations in most cases tended to be effective platforms for 58 Exceptions included one Himachal Pradesh green growth policy operation that ended early in the CPS in 2013 which provided a broader platform for multi-sectoral issues as well as comprehensive analyses conducted in Rajasthan and Madhya Pradesh, but they were under finalization after the end of the CPS period. 59 Operations under this general categorization include ISSNIP, SSA III, RMSA, Rural Water Supply and Sanitation for LIS, National Watersheds, SBM Support, PMGSY, and health care projects supporting HIV/AIDS control and access to tuberculosis care. 107 scaling up good state experience and cross-state learning and feedback loops between national policy and state implementation. At the same time, except for successor projects such as SSA III, these operations generally experienced long start-up periods of two years or more before disbursements started flowing. Delays stemmed from the need to settle on respective roles played by states and the center, particularly in providing for more local management control, and setting up an MIS to verify results in the case of RBF operations. In addition, WBG implementation support was distant from state-level implementation where issues needed most attention. Successful support generally required supplemental, usually TF-financed state-level support through consultants (for example, for ISSNIP). Future national engagements should seek to maximize the benefits from working through the central level—scale, promoting flexibility and competition among states, ensuring exchange of experiences and practices, and providing for a nexus between implementation and policy—while minimizing the potential downsides of onerous implementation mechanisms and centralized control over implementation. 57. The World Bank’s ability to support systemic improvements through operations depended on the long-term partnership in the sector more than the amount of financing. There was no particular correlation between absolute amount of World Bank financing or its proportion of the overall cost of the operation and the extent to which the operation had systemic, institutional impact. Teams noted that significant loan size, even if a small proportion of the overall program, was important to “have a seat at the table” to engage with GoI counterparts on systemic issues, but there was no pattern of larger loans equating with larger systemic impact. The ability of the WBG to contribute to systemic reforms appeared to be more connected to length of engagement, which allowed for strong sector knowledge and a track record of partnership, such as in the rural roads or elementary education sectors. Most notably, the National Rural Livelihoods Project as restructured to reduce financing by half while maintaining effective support for the Government program. The lack of correlation between amount of financing and WBG’s engagement on systemic issues suggests greater scope for rightsizing loans to allow for the WBG to play a catalytic, supporting role on institutional reforms. It also underscores the need for continuity in working in sectors to allow the WBG to be an effective partner. Longer term engagement also provides a platform for more innovative activities and financing arrangements, including potentially more leveraging of private sector resources. 58. An increase in operations with RBF during the CPS period appeared to promise stronger impact, but these operations need to ensure that the M&E systems to trigger disbursements are thoroughly developed. Beginning in FY14, the portfolio restructured five IPF operations to introduce RBF through DLIs and nine PforR operations, often in a hybrid with relatively small technical assistance investments, were approved. Three-quarters of these operations were either approved or restructured in the last two years of the CPS cycle, making it too early to assess definitively effectiveness of RFB. However, at least with regard to three operations in the health sector, hybrid RBF/IPF operations proved effective in significantly improving the performance and development impact. At the same time, several PforRs at both national and state levels had disbursement challenges stemming from delays in setting up systems to confirm achievement of results. 59. There remains significant untapped opportunity to leverage WBG activities to crowd in private sector investment. The CPS’s goal of increased leveraging of private financing of public infrastructure and services was met through IFC’s support for 24 PPPs as well as the World Bank’s support for the so -called hybrid annuity model for public assets, mainly in the roads sector, as well as private service provision in health and education. There is significant scope for expansion, particularly in the urban sector, though this will require efforts at upstream reforms to capacitate public sector entities to plan for and execute PPPs in a fiscally and administratively responsible fashion. In addition, initial discussions at the end of the 108 CPS period to have the GoI consider use of guarantees provided by IBRD and MIGA to leverage private financing merit continuation. The WBG can achieve much greater impact if it can leverage its instruments to crowd in private finance. 60. Examples of cross-sectoral operations providing a more holistic approach need to be expanded further. The depth of WBG engagement over the years has meant that there have been multiple generations of projects in sectors. The past CPS saw several examples of multisectoral approaches across global practices, such as agricultural projects focusing more on competitiveness issues along value chains, the evolution of SHGs toward more market-oriented entrepreneurship, and the more explicit approach to improving governance and institutions in the health and other social sectors. Having modalities and management attention to ensure the full range of technical skills needed to address multifaceted development challenges will be important for the WBG’s value proposition as a development partner for India. 109 Table 1 (CLR Annex 1): India FY13–17 CPS Results Framework Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) Engagement Area 1: Integration Upgrade national Most national 1.1 Improved transport Generation of at least US$300 Completed financing: and state highways need connectivity in targeted million in new private sector Strengthening of Capacity of Bihar’s highways to the upgrading and States capital for Core Road Network Road Construction Department; minimum two- maintenance work improvement and management Andhra Pradesh Road Sector; Odisha lane standard 7000 km of additional State State Roads; NHAI Technical Low freight train highways upgraded and Update: Achieved Assistance; PMGSY Rural Roads; Complete Eastern capacity; maintained in good condition in US$488 million in new private Himachal Pradesh State Roads; Punjab and Western inadequate asset targeted states by 2017 sector capital for CRN State Road Sector; Eastern Dedicated Freight Corridors maintenance improvement and management Freight Corridor I; Financing Public Update: Mostly Achieved generated as part of Second Private Partnerships (PPPs) in ~5,550 km highways upgraded Karnataka State Highway Infrastructure through Support to the and maintained in good condition Improvement Project India Infrastructure Finance Company in targeted states Ltd (of which, 340 km of the Eastern rail P096019 HP State Roads Project: Corridor (Khurja and Kanpur Ongoing financing: 355 km roads rehabilitated section) completed Mizoram State Roads II; Rajasthan P096023 Orissa State Roads Road Sector Modernization; Assam Project: 150 km roads Update: Partially Achieved State Roads; Bihar Rural Roads; Second rehabilitated Project under implementation; Kerala State Transport; National P096018 Assam State Roads 60% civil works completed Highways Interconnectivity Project: 223 km core roads Improvement; Second Gujarat State rehabilitated and improved At least 3 road safety Highway; Second Karnataka State P130339 Second Kerala State demonstration corridors Highway Improvement; Second Tamil Transport Project: 190 km roads implemented by 2017 Nadu Road Sector; Eastern Dedicated constructed Freight Corridor II & III: PMGSY Rural P090585 Punjab State Road Sector Update: Partially Achieved Roads Project: 80 km roads improved and In progress in Karnataka rehabilitated plus 203 Km (Status: Lead Agency Key ASA: Transport Policies and improved under the OPRC contract established; multi-sector Reform Activities; Eastern Corridor Intermodal Transport and Logistics; 110 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) P096021 Andhra Pradesh & intervention started and in Accelerating the Impact of Transport Telangana Road Sector Project: progress). Infrastructure; Strengthening 248 km plus 3062 Km improved Institutional Development for under LTPBMC maintenance In progress in AP & Telangana. Transport Projects, SS-DPSP: contract Procurement of civil works Strengthening Frameworks and P107649 Second Karnataka State completed and works in Building Capacity for PPPs Highway Improvement Project: progress. Intermediate 635 km (379 km through item rate studies/surveys already + 256 km DBFOMT (Annuity))\ indicate a notable reduction in P121185 National Highways accidents and fatalities Interconnectivity Improvement Project: NA In progress in Gujarat. Designs P114827 Second Gujarat State for a revised (in scope) Safety Highway Project: 405 km (230 km Corridor Demonstration Project constructed + 175 km (SCDP) being finalized. rehabilitated). P143751 Second Tamil Nadu Road Sector Project: NA Rail transport capacity on Eastern Freight Corridor increased from 20 (in 2011) to 22 (NTKM bn ton-km) by 2017 Update: Not Achieved Construction not completed; expected by 2020. Strengthen India's Electricity 1.2 Improved inter-regional At least 5,000 circuit kilometers Completed financing: electricity supply transmission power transmission connectivity of transmission capacity added Financing Public Private Partnerships and transmission capacity between by 2015 (PPPs) in Infrastructure through system in order to regions and states Power exchange between regions Support to the India Infrastructure increase is low and States increased from 46,027 Update: Achieved Finance Coming Ltd; Rampur availability and Gwh in 2009 to 60,000 Gwh by 5,086 circuit kilometers added. Hydropower; Power System reliability of power 2017 (Of which, 111 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) for economic Generation stations P110051 Haryana Power – 610 Development IV; Haryana Power development operate below Update: Achieved ckm added between July-2013 System Improvement capacity (60% of 89,052 Gwh; end-project targets and June 2015; 745 ckm added firms rely on costly for power exchange under between July-215 and May- Ongoing financing: back-up generation) Powergrid IV &V (exceeded FY17 2017. Fifth Power System Development; Coal- target of 75,000 Gwh). P101653 Powergrid IV – 1,023 Fired Generation Rehabilitation; (P101653 Powergrid IV and ckm Vishnugad Pipalkoti hydroelectric; P115566 Powergrid V) P115566 Powergrid V – 2,708 North Eastern Region Power System ckm) improvement; Energy Efficiency at SMEs At least 412 MW of hydro power generation capacity Key ASA: Concentration Solar Power; constructed by 2017 Program for Market Readiness; Rural Feeder Segregation; Private Sector Update: Achieved Participation in Hydropower; Cool 412 MW of capacity Roofs for Reducing Building Energy constructed and synchronized Demand; SS-DPSP: Strengthening with the grid. Frameworks and Building Capacity for (P095114 Rampur and P096124 PPPs; Policy of Notes on Power; Vishnugad) Lighting Rural India: Load Segregation Experience in Selected States; More 420 MW of Coal-Fired Power to India: Challenge of Electricity generation plant rehabilitated Distribution; Update: Partially Achieved Under P100101 Coal-Fired Generation) 215 MW of Coal- Fired generation plant rehabilitated (Bandel) commissioned in FY16 and another 225 MW of coal-fired generation capacity will be rehabilitated by FY18 (Koradi). 112 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) Develop demand Skills mismatch in 1.3 Improved demand-driven 5 Institutes of training of Completed financing: driven, skilled the job market. skills for productive trainers (ITOT) established by Tamil Nadu Empowerment and Poverty workforce by employment 2014 Reduction: TA Disability; Bihar Rural providing Poorly trained labor Livelihoods – JEEViKA; Orissa Rural increased force (29% not Graduates of Industrial Training Update: Mostly Achieved Livelihoods; Second Madhya Pradesh opportunities skills literate and another Institutes employed within 1st year A total of 4 ITOTs established District Poverty Initiatives; Technical training 24% with primary of completing training increased so far. 3 were established by Engineering Educational Quality education). from 60% (Female 38%) in 2012 to 2014, and 1 was established in Improvement II; Bihar Rural Livelihood 70% (Female 50%) by 2015 Nov 2016. Additionally, 1 more AF; TA to Enhance Financial Access Low female labor is under construction and is through Technology in Andhra Pradesh; force participation Update: Partially Achieved expected to be commissioned Tamil Nadu Empowerment and poverty (29% of total). Graduates of Industrial Training by June/ July 2017. Reduction Institutes in the labor market employed within 1st year of At least 3,000 new and current Ongoing financing: completing training was 52.2% instructors given entry-level or Creating Inclusive Business Models for (Female 41.3%) by 2016 refresher/specialized Marginalized Tribal Communities in (Source: VTIP tracer study); while instructors courses annually by Doisha, Jharkhand and Madhya the estimated calculation for 2012 2015 Pradesh; Innovate in India for was 43.8% (female 27.7%) Inclusiveness; Technology Center Update: Achieved Systems Project; Tejaswini: Graduates of Industrial Training At least 10,000 new and Socioeconomic Empowerment of Institutes in the labor market current instructors given entry- Adolescent Girls & Young Women; employed within 2nd year of level or refresher/specialized Vocational Training Improvement; completing training increased instructors courses annually by Andhra Pradesh Rural Inclusive from 60% (38% women) in 2012 to 2015 (MSDE administrative Growth; National Rural Livelihoods; MP 67% (Females 57.9%) in 2016 data) Higher Education Quality (source: VTIP Tracer Study) Improvement; Nai Manzil – Education At least 700,000 youth are and Skills Training for Minorities; At least 500,000 youth (including provided with job placement Technical Education Quality more than 40% women) from the training Improvement III; Bihar Transformative supported SHGs and CDOs are Development; Tamil Nadu placed in appropriate jobs Update: Mostly Achieved Empowerment and Poverty Reduction 640,000 youth provided with Vazhndhu Kattuvom AF; MSME Growth Update: Achieved job placement training (2013- Innovation and Inclusive Finance; North 113 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) 505,039 jobs provided of which, 17: Through Tamil Nadu, East Rural Livelihoods; Rajasthan Rural P104164 National Rural National Rural Livelihoods Livelihoods Livelihoods: 162,586 (62,596 Project, Bihar Rural Livelihoods, women or 38.5%) Madhya Pradesh Poverty Key ASA: P079708 Tamil Nadu: 288,976 Initiatives Project, Northeast Higher Education in Madhya Pradesh – (115,590 women or 40%) Region Rural Livelihoods The Way Forward Bhopal, India; P090764 Bihar Rural Livelihoods* Project) Strengthening teacher capacity in Bihar 29,000 through ICT: designing innovative P102330 North East Rural solutions to unique challenges; Livelihoods Project 4,496 Technical Vocational Education and Second Madhya Pradesh District Training Reform in West Bengal; Poverty Initiatives Project* 19,981 Vocational Education; Migration and Remittances; Higher Education; Small (* not including jobs provided and Medium Enterprise Capacity through job fairs, without a Building; Labor Market Impacts and training intervention.) Effectiveness of Skills Development Programs in India; IFC Farmer Training/GAP Program, India Sugar Program and Farm Forestry Project; TVET; West Bengal Skills Development Increase private Low private sector 1.4 Enhanced private investment IFC’s technical assistance and Ongoing financing: Financing Public sector investment investment in Low- in low income States PPP advisory projects in low- Private Partnerships (PPPs) in in lagging regions income States income states, which include Infrastructure through Support to the Additional US$ 1.3 billion private India Infrastructure Finance Company investment facilitated in LIS States 8 IFC led technical advisory Ltd; by 2017 and/or PPP projects achieved in 2015 Key ASA: IFC’s programs on Health for Update: Achieved All, Buddhist Circuit, Rajasthan IC; Ease Total additional private investment Update: Achieved of Doing Business; Support to India's facilitated in low income states 40 IFC led technical advisory PPP Initiatives Cluster; Risk Based was $1.4 billion for investment of and/or PPP projects Supervision; Going Beyond Efficiency which $122 million was through India advisory projects as of March 31, 23 IFC led investment projects 2017 achieved in 2015 114 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) Update: Achieved 43 IFC led investment projects achieved by 2017 Integrate regional Below potential 1.5 Strengthened regional trade Construction of Indo-Nepal Completed financing: market in trade, levels of regional and infrastructure integration transmission line has Nepal-India Electricity Transmission infrastructure trade and commenced in accordance with and Trade (power and investment; poor 150 MW of electricity traded the tender package awarded by transport), and connectivity between India and Nepal by 2017 2014 Ongoing operations: Nepal-India Trade investment between India and and Transport Facilitation Project; neighboring Update: Achieved Update: Achieved Nepal-India Electricity transmission and countries Currently 160 MW of electricity is Procurement for transmission transport Project; Mizoram State Roads being imported using the partially lines, substations, transformers II: Regional Rural Road Connectivity; completed 400 kV cross-border and conductor was completed IFC commitments in 8 South-South transmission line. By September by Projects 2017, the substation and other December 2015. receiving infrastructures under the Key ASA: Mizoram Roads and Trade project would be completed Trade information portal and Sectors; Bangladesh-India Inland Water enabling an additional 150 MW of single window system Transport; TA for knowledge exchange electricity would be imported developed by 2015 across SAR countries on performance using WBG-financed management; Ease of Doing Business; infrastructure. Update: Partially Achieved Economic Integration ASA Cluster Trade information portal Border crossing time between launched in September 2016. India and Nepal reduced by 20 % by 2017 (3-4 days in 2012) 115 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) Procurement of National Single Update: Not Achieved Window system development Works on Raxaul (India) is in progress. completed; in Birgunj (Nepal) near completion, but operational Narayanghat-Mugling road improvements expected only upgraded by 2016 beginning in 2018. Update: Mostly Achieved 50% physical progress on Narayanghat-Mugling road works. Completion expected by December 2017. Engagement Area 2: Transformation Improve long-term Low urban planning 2.1 Strengthened institutional At least 20 cities with Completed financing: planning for capacity, weak capacity of urban government in new/revised city development Citywide Slum Upgrading Plan for the sustainable and governance, and targeted states plan in targeted States by 2015 Heritage City of Agra; Karnataka inclusive urban financially Panchayats Strengthening; Knowledge development; unsustainable ULBs, At least 220 cities (ULBs) with Update: Achieved Support for PEARL Programme under strengthen with limited new/updated urban management New/Revised City development JNNURM; West Bengal PRI; Karnataka governance and capacity to raise systems (in planning, financial plans for 20 cities have been Municipal Reform; Third Tamil Nadu financial own resources management, citizen-interface, prepared Urban Development; Kerala Local sustainability of etc.) to improve service delivery in (P099979 Capacity Building for Government and Service Delivery urban local bodies targeted states by 2017 Urban Development) (ULBs) Ongoing financing: Update: Achieved 230 cities with new e- Citizen Access to Responsive Services; Total of 320 ULB governance and/or GIS Bihar Panchayat Strengthening; Tamil mapping system in the states of Nadu Sustainable Urban Development 164 cities that have new e- Karnataka and Tamil Nadu by Program; Capacity Building for Urban governance systems for a range of 2016 (0 in 2012) Local Bodies-NURM; Andhra Pradesh municipal functions / citizen Municipal Development services and 29 cities have new GIS Update: Mostly Achieved maps in Karnataka (multiple 213 cities have new e- Key ASA: Social Dimensions of activities in cities), governance systems for a range Urbanization; National Land Records of municipal functions / citizen Modernization Implementation 116 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) 49 cities with new municipal e- services and 29 cities that have Support; Inclusive Heritage Based City governance systems in Tamil Nadu new GIS maps in Karnataka and Development Planning; 100 Smart and new/revised City 49 cities with new municipal e- Cities & AMRUT 500+ Cities; Urban ASA Development Plans for 20 cities governance systems in Tamil Cluster; Capacity Building for Land that have been prepared (multiple Nadu. Governance and Management activities in cities); Program; Odisha Enhancing Growth (P079675 Karnataka Municipal and Improving Service Delivery; Spatial 107 ULBs in Andhra Pradesh and Reform Development; Piloting and Telangana implementing 19 P083780 Third Tamil Nadu operationalization of city sanitation municipal e-governance modules Urban Development) plans towards outcome oriented sector including areas such as on-line investments; Land governance building permissions, grievance assessment: National synthesis report; redress, and citizen services such Running water in India’s cities: a review as issuance of birth and death of five recent public-private certificates. partnership initiatives IFC’s advisory assistance to governments to structure (P099979 Capacity Building for PPP; Private Sector Commercial Urban Development, Financing Framework for urban (and P079675 Karnataka Municipal renewable) infrastructure financing P083780 Third Tamil Nadu Urban Development P071250 Andhra Pradesh and Telangana Urban Project.) Increase public Poor or non- 2.2 Improved urban transport 6 Cities developed urban Completed financing: transport; expand existent urban services transport investment plans by Mumbai Urban Transport-2A metro rail and bus transport planning 2016 system; and Modal share by public Ongoing financing: improve road Supply of public transport in targeted cities Update: Mostly Achieved Efficient & Sustainable City Bus safety transport has not increased from 4% in 2010 to 8% 5 project cities and investment Services; Sustainable Urban Transport kept up with by 2017 plans developed for Hubli- (GEF); Sustainable Urban Transport demand Dharwad, Indore, Mysore, Naya Update: Achieved Raipur, and Pimpri-Chinchwad. Public transport modal share in P110371 Sustainable Urban Pimpri-Chinchwad increased from Transport 117 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) 4.2% to 8.9% in 2016 (exceeds end target of 8%). 7 additional electric EMU train (12-car train) added in targeted Public transport trip modal share cities by 2017 between Raipur and Naya Raipur increased from 0 to 36% in 2016 Update: Achieved. (end target 40%) 61 additional trains. The EMU fleet size (12-car (P110371 Sustainable Urban rakes in service) is 253 as of Transport) May 2017 against baseline of 192 rakes in service in 2013 P113028 Mumbai Urban Transport Project-2A Improve access to Limited access to 2.3 Improved access to water Additional 10,000 water supply Completed financing: water and piped water supply supply and sanitation services systems rehabilitated or Hydrology Project Phase II; sanitation services services and extended across states by 2017 Maharashtra Water Sector in rural and urban sanitation systems Additional 15 million people Improvement; Supporting and areas in rural and urban provided with access to improved Update: Mostly Achieved Operationalizing the National Urban areas water sources by 2017 5,469 water schemes Sanitation Policy (NUSP) in India; constructed, of which Punjab Rural Water Supply and Update: Achieved P121774 2nd Kerala RWSS: Sanitation; Karnataka Municipal 15,008,314 people of which 1,012 Reform; Second Karnataka Rural Water P083780 Third Tamil Nadu Urban P101650 Andhra Pradesh Supply and Sanitation; Third Tamil Development: 1,900,000 RWSS: 536 Nadu Urban Development; P071250 Andhra Pradesh and P132173 RWSS in LIS: 70 Uttarakhand Water Supply and Telangana Municipal P090592 Punjab RWSS: 100% Sanitation; Karnataka Municipal Water Development: 270,000 P083187 Uttarakhand RWSS: Energy Efficiency; Andhra Pradesh P101650 Andhra Pradesh RWSS: 3,851 Municipal Development; Uttarakhand 1,622,270 P12632 Maharashtra RWSS: 0 RWSS AF; Andhra Pradesh Rural Water P079675 Karnataka Municipal Supply and Sanitation; IFC Waste Reform: 100,000 Additional 6,000 sanitation management services in Odisha; IFC P050653 2nd Karnataka RWSS: systems rehabilitated or Waste to Energy Investment Project; 7,026,924 extended across states by 2017 118 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) P090592 Punjab: 1,862,557 IFC investment in water treating P083187 Uttarakhand RWSS: Update: Mostly Achieved utilities 1,570,000 3,509 sanitation schemes P121774 2nd Kerala RWSS: 416,000 constructed, of which Ongoing financing: P132173 RWSS in LIS: 240,563 P090592 Punjab RWSS: 100% Punjab Rural Water and Sanitation P083187 Uttarakhand RWSS: Sector Improvement; Swachh Bharat Additional 6 million people 3,509 Mission Support Operation; National provided with access to improved P132173 RWSS in LIS: 0 Hydrology; Karnataka Urban Water sanitation system by 2017 (Urban: Supply Modernization; Maharashtra 1.0 million; Rural: 5.0 million) Rural Water Supply and Sanitation; Rural Water Supply and Sanitation Update: Achieved Project for Low Income States; Second 6,772,032 people of which Kerala Rural Water Supply and P083780 Third Tamil Nadu Urban Sanitation Project (Jalanidhi II) Development: 170,000 (Urban) P079675 Karnataka Municipal Key ASA: Improving Rural Power Reform: 71,000 (Urban) Supply; Water ASA Cluster; P101650 Andhra Pradesh RWSS: Strengthening Sector Policy & 39,468 (Rural) Monitoring in Rural Sanitation; P050653 2nd Karnataka RWSS: Strengthening Local Government 1,377,990 (Rural) Capacity for Rural Sanitation; Punjab P083187 Uttarakhand RWSS and Rural Water & Sanitation Impact P148009 Uttarakhand Additional Evaluation; Strengthening Client Financing: 4,288,840 (Rural) Institutions for Rural Water Supply; P121774 2nd Kerala RWSS: 344,000 Gender Sensitivity for Water & (Rural) Sanitation; SS-DPSP: Strengthening P132173 RWSS in LIS: 480,734 Frameworks and Building Capacity for (Rural) PPPs; Running water in India’s cities: a review of five recent public-private Additional 3,000 Gram Panchayats partnership initiatives; Evaluation of achieved Open Defecation-Free water services public private (ODF) status in targeted states by partnership options for mid-sized cities 2017 in India; Strengthening institutional capacity with gender sensitivity and 119 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) Update: Achieved generating knowledge for water and sanitation sector policy reforms; Additional 28908 GPs have Support to drinking water security achieved Open Defecation Free pilots in India; Support to Government (ODF) status. of India for Implementation of National Urban Sanitation Policy; Capacity Note: This status is based on data development for integrated water from ODF verification by state resources development and governments by 2017 in states management; Supporting impact targeted under Bank Executed evaluation studies in water supply and Technical Assistance and Bank sanitation in India; What Works at Operations. Independent Scale? Distilling the Critical Success verification has not yet been Factors for Scaling Up Rural Sanitation; conducted IFC's India E-Waste Advisory Raise agricultural Low agricultural 2.4 Increased agricultural Additional 1.1 million hectares Completed financing: productivity to 4% productivity productivity in targeted areas of improved irrigation in Assam Agricultural Competitiveness; per annum targeted areas by 2017 Himachal Pradesh Mid-Himalayan Outdated Cereal yield for beneficiaries Watershed Development; Madhya Strengthen agriculture farmers (tons/hectares) Update: Achieved Pradesh Water Sector Restructuring; irrigated water technology and - Paddy increased from 2.9 in 2,082,916 hectares of land with National Agricultural Innovation; resource practices 2012 to 3.5 by 2017 improved irrigation by 2017 Strengthening the Enabling management - Wheat increased from 2.8 in Environment for Biodiversity Inefficient and 2012 to 3.5 by 2017 P100954 Andhra Pradesh Conservation and Management in unsustainable use - Sugarcane increased from 55 Water Sector Improvement India; Andhra Pradesh Community- of water resources in 2012 to 63 by 2017 P100789 Andhra Pradesh Based Tank Management; Orissa in irrigated Community Tanks Community Tank Management; Tamil agriculture Update: Mostly Achieved P090786 Tamil Nadu Irrigation Nadu Irrigated Agriculture Paddy yield increased from an P112033 Uttar Pradesh Sodic III Modernization and Water-Bodies average of 2.9 tons/ha to 4.5 P100735 Orissa Community Restoration and Management; HP Mid- tons/ha in 2017 Tank Management Himalayan Watershed Development P105311 West Bengal Minor AF; Assam Agricultural Competitiveness Wheat yield in 2012 was all in Irrigation AF excess of 6, up from 0, 1.4, and 4.3 P084792 Assam Agriculture for various classes of land in 2009 Competitiveness Ongoing financing: 120 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) in Uttar Pradesh, when the UP P093720 Mid-Himalayan (HP) Himachal Pradesh Horticulture Sodic III project started. Yields Watershed Development; Karnataka Watershed were minimally larger at 6.13, P1073370 Madhya Pradesh Development II; Maharashtra 6.53, and 6.9 (UP Sodic III) Water Sector Restructuring) Agricultural Competitiveness; Neeranchal National Watershed; IFC Update: Sugar cane IFC Update: 130,000 ha with Rajasthan Agricultural productivity ranged from 62.7 – improved water management Competitiveness; Uttar Pradesh Water 89.7, when initial baselines were practices (India Sugar Advisory Sector Restructuring Phase 2; between 52.8 and 69.3, registering Program) Uttarakhand Decentralized Watershed improvements in yield between Development II; Andhra Pradesh Water 16% - 49% (targeted increase was At least 1 million farmers Sector Improvement; West Bengal 15%) adopting improved crop Accelerated Development of Minor (note: improvement in yield production techniques and Irrigation; National Dairy Support; wasn’t easy to measure as a single practices in targeted areas by Jharkhand Opportunities for number because there were 2017 Harnessing Rural Growth; Uttar multiple clients, plants, and Pradesh Sodic Lands Reclamation III sugarcane varieties. Hence, Update: Achieved baselines and improvements in 1.14 million, of which over Key ASA: Enhancing Agriculture productivity are reported as 944,000 through Bank Productivity: Policy and Investment ranges) interventions Priorities; Agricultural Insurance NLTA; Capacity Development for Integrated Water Resource Development; Post- (P084792 Assam Agriculture Harvest Management and Agribusiness P100954 Andhra Pradesh Water Competitiveness in India: Challenge; Sector Improvement P120836 Maharashtra "Rurban" Mission; IFC India Sugar P100789 Andhra Pradesh Agriculture Competitiveness Program & Farmer Training/GAP Community Tanks P107648 National Dairy P090786 Tamil Nadu Irrigation Support P112033 Uttar Pradesh Sodic III P100954 Andhra Pradesh P100735 Orissa Community Tank Water Sector Improvement Management P100789 Andhra Pradesh P105311 West Bengal Minor Community Tanks Irrigation P090786 Tamil Nadu Irrigation P112033 Uttar Pradesh Sodic III 121 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) P100735 Orissa Community Milk production Tank Management (litres/day/animal) for beneficiary P093720 Mid-Himalayan (HP) farmers increased from 3.87 liters Watershed in 2012 to 4.26 liters by 2017 P1073370 Madhya Pradesh Water Sector Restructuring Update: Achieved P104164 National Rural Milk production (l/animal/day) Livelihoods increased from baseline of 5.03 P102331 Madhya Pradesh (2012) to 6.03 (2017), benefiting Poverty Livelihoods) 2.7 million producers or 20% increase, while the percentage At least 650,000 farmers increase in the target was 10%. adopting improved livestock Note: absolute numbers for the production techniques and baseline changed due to change in practices in targeted areas by the sample which led to 2017 recalculation. Update: Mostly Achieved Update: P084792 Assam Agricultural IFC Update Competitiveness Project 522,483 farmers reached. P107648 National Dairy Support IFC’s sugar advisory reached 217,756 of these farmers. Of the farmers supported by Advisory, 100,000 farmers have improved their performance, leading to 130,000 hectares of land sustainability managed and to 191 million cubic meters of water use per year avoided. Note: A subset of the 522,483 farmers reached by investment was also targeted by the IFC 122 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) sugar advisory, but are not counted as additional. Improve Deteriorating 2.5 Improved environment Environmental Compliance Completed financing: management of environmental protection and biodiversity Assistance Center to promote Development Policy Loan to Promote natural resources quality due to conservation measures for voluntary Inclusive Green Growth and by introducing water pollution industrial compliance Sustainable Development in Himachal regulation to limit 160 million liters per day of established by 2015 Pradesh; Policy and Institutional water pollution, Unsustainable untreated municipal and industrial Reform for Mainstreaming and improving exploitation of wastewater prevented from Update: Achieved Upscaling SLEM in India; Sustainable sewerage natural resources entering the National Ganga River An Environmental Compliance Land: Water and Biodiversity treatment system, and degradation of by 2017 Assistance Center has been Conservation and Management for and protecting biodiversity. established in Kolkata, West Improved Livelihoods in Uttarakhand biodiversity Update: Partially Achieved Bengal and has been made fully Watershed Sector operational. 34 million litres per day (MLD) of Ongoing financing: Capacity Building wastewater treatment capacity Additional 200-million-liter day for Industrial Pollution Management; financed by the Bank is of wastewater treatment Sustainable Livelihoods and Adaptation operational; under Bank-financed capacity created in the National to Climate Change; National Ganga operations it is expected that 18 Ganga River basin by 2017 River Basin; Biodiversity Conservation contracts awarded and under and Rural Livelihoods Improvement; implementation will create 208 Update: Not Achieved Integrated Coastal Zone Management MLD of wastewater treatment capacity by 2020. Under Bank-financed Key ASA: Green Growth in Himachal operations it is expected that Pradesh; IFC Agri-water efficiency Additional 500,000 hectares contracts awarded and under program and industrial water reuse brought under enhanced implementation will create 208 project biodiversity protected area MLD of wastewater treatment management capacity by 2020 Update: Achieved Institutional and 700,000 hectares were brought methodological framework and under enhanced biodiversity guidelines for landscape management. conservation approaches 123 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) 590,000 hectares under the developed in high biodiversity Biodiversity Conservation and landscapes Rural Livelihoods Project (490,000 hectares in the Little Rann of Update: Achieved Katchchh; 100,000 hectares in Framework and guidelines have Satpura, Pench and Askot been prepared and are Landscapes); currently undergoing national 110,000 hectares under the level consultations, required Integrated Coastal Zone prior to formal notification Management Project (100,000 expected by end 2017. hectares in the Chilika Lake and catchments, and 10,000 hectares Additional 50 billion liters of through mangrove plantations in water saved or harvested as a Jamnagar and Katchchh districts) result of IFC’s engagement . P088520/ P088598 Biodiversity IFC Update: Achieved Conservation and Rural Livelihoods India Sugar Advisory program P097985 Integrated Coastal Zone (DSCL and Olam): 27 billion Management liters of which have already been achieved 198 million cubic meters (191 billion liters/year) water use avoided due to IFC’s Interventions . (579427 India Sugar Advisory 594767 TATA Water Sustainability Program Reduce the Lack of awareness 2.6 Reduced Greenhouse Gas Additional 4,000 MW of energy Completed financing: intensity of about energy saving Emissions through energy saved via supported energy Chiller Energy Efficiency; Chiller Energy greenhouse gas technologies and efficiency and renewable efficiency measures by 2017 Efficiency Project – MP Component; emissions measures to reduce energy production Karnataka Wind; Street Lighting Energy Ozone Depleting Efficiency Substances 124 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) Additional 1.5 million (tCO2e) GHG Additional renewable energy Ongoing financing: emissions reduced per year by capacity developed generating Additional Financing for Grid- 2016 3000 Gwh annually by 2017 Connected Rooftop Solar Program; Coal-Fired Generation Rehabilitation; Update: Mostly Achieved Update: Achieved Grid-Connected Rooftop Solar 1.41 million tCO2e annually P154283: Additional renewable Program; Financing Energy Efficiency at energy capacity developed SMEs; Partial Risk Sharing Facility in The IBRD funded a Rampur generating 420 Gwh annually Energy Efficiency; Partial Risk Sharing Hydropower Project which has by FY18 and 1700 Gwh annually Facility in Energy Efficiency; generated 5200 GWh between by FY19 Programmatic Framework for EE – 2014 and March 2017 and helped P155007: Additional Solar PV MSMEs – AF; Shared Infrastructure for in reducing 4.16 million tCO2e in capacity supported – 150 MW Solar Parks; Vishnugad Pipalkoti Hydro total; 1.41 million tCO2e annually by 2018 and 300 MW by 2019 Electric and 2.59 million tCO2e by March 2016 IFC Update: 3,212 Gwh Key ASA: IFC Lighting Asia: India addition renewable energy Program; Development of local supply capacity developed by 2017 chain: A critical link for concentrated IFC Update: The expected GHG solar power in India: Summary Report; emission reductions during the 80 CFC-based centrifugal Paving the way for a transformational reporting period is 2,220,250 chillers replaced by the CEEP future: lessons from Jawaharlal Nehru (TCO2e) per year by 2016. national solar mission phase one Update: Not Achieved P154283: Construction of two solar parks started in FY17. While one solar park will be operational by FY18, the second park will be operational in FY19. Construction and operation of 13 solar and wind stations by 2017 IFC Update: Achieved 125 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) 6 Wind power and 7 Solar energy stations constructed and in operation Engagement Area 3: Inclusion Universalize 30% of rural 3.1 Improved access to electricity At least 10,000 circuit Completed financing: access to households lack in targeted states kilometers of transmission Financing Public Private Partnerships electricity, access to electricity; capacity added by 2015 (PPPs) in Infrastructure through focusing on Additional 300,000 of connections Support to the India Infrastructure electrification of High reliance on to Below Poverty Line households Update: Achieved Finance Company Ltd; Rampur all villages traditional sources by 2017 in North Eastern Region P115566, Powergrid Fifth Hydropower; Haryana Power System of fuel in rural project: 3,731 circuit kilometer Improvement; India Mumbai Increase households, with Update: Not Achieved of transmission capacity added Ongoing financing: Fifth Power System household access deleterious health The North Eastern Region Power till FY17. At the corporate level, Development; Coal-Fired Generation to clean and impact System Improvement Project was POWERGRID added 40,000 ckm Rehabilitation; Vishnugad Pipalkoti environmentally approved in June 2016 and will during this period Hydro Electric; Coal-Fired Generation sustainable energy close in March 2023 with Rehabilitation (MP); North Eastern implementation having just P110051,Haryana Power – Region Power System Improvement started and by the time of project 1,355 ckm added between July- IFC’s Street lighting infrastructure closing, it is expected that the 2013 and May-2017 Odisha Program; IFC Investment in region will be close to 100% private sector generation, transmission At least 412 MW of hydro electricity access levels. and distribution; IFC supported direct power generation capacity lines with banks/infrastructure finance constructed by 2017 Additional 220,000 households companies to support renewable with off-grid connections Update: Achieved energy; Gujarat Solar Project (PPP). 412 MW of capacity Update: Partially Achieved constructed and synchronized IFC Update: 48,441 additional with the grid as of December Key ASA: Policy of Notes on Power; households with off grid 2014 (P095114 Rampur Long-term impacts of household connections due to IFC’s Hydropower Project) electrification in rural India interventions IFC Lighting Asia: India Program and 420 MW of Coal-Fired Rooftop Solar Program in Orissa and Biomass ESCO 579407 generation plant rehabilitated other states. Lighting Asia 587687 126 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) (579407 Distributed ESCO Update: Partially Achieved Expansion – Biomass (Husk Power) 215 MW of P100101 Coal-Fired 641186 Husk Power) Generation plant rehabilitated (Bandel) commissioned in FY16, another 225 MW of coal-fired generation capacity will be rehabilitated by FY18 (Koradi) Improve efficiency Limited capacity of 3.2 Strengthened public and At least 40 health facilities Completed financing: of health delivery state-level health private health delivery systems assessments completed and National Vector Borne Disease Control systems by institutions (low action plan developed in the & Polio Eradication Support; Tamil converging health accountability, Below Poverty Line (BPL) and other targeted states by 2017 Nadu Health Systems; Karnataka programs under inadequate vulnerable households covered Health Systems; Tamil Nadu Health AF the National Rural financial under Government Sponsored Update: Achieved Health Mission management, poor Health Insurance Schemes Total: 518 Ongoing financing: Innovate in India quality assurance, increased from 180 million in 2011 Karnataka Health System for Inclusiveness; Accelerating poorly trained to 350 million by 2017 Development and Reform Universal Access to Early and Effective health workers), (P071160): 188 (6 NABH + 182 Tuberculosis Care; Nagaland Health; resulting in Update: Partially Achieved Kaya Kalp) National AIDS Control Support; inefficiency delivery Approximately 335 million BPL Uttarakhand Health Systems of health services persons (not households) covered Uttar Pradesh Health Systems Development; Uttar Pradesh Health by government sponsored health Strengthening Project Systems Strengthening insurance schemes, with baseline (P100304): 55 (53 NABH + 2 of 149 million in 2012-13 of which Kaya Kalp) Key ASA: Impact of Social over 30 million in Karnataka Accountability Interventions on directly funded by the bank Tamil Nadu Health Systems Healthcare; Government Sponsored through Karnataka Health System (P075058 and P118830): 275 Health Insurance Programs; Learning Development and Reform from India's HIV Response; Service (P071160) and many of the others At least 50 PPPs performance- Delivery and Public Spending on supported by the Bank through TA. based contracts in health Health; Government-sponsored Health (note: indicator states facilities in targeted states by Insurance Schemes; IFC’s Meghalaya “households” but the intent was 2017 Health for All; IFC’s Shillong Medical; people, since the total number of Karnataka RBF Hospital Care; The all households in India is about 250 Update: Achieved Knowledge Hub for Government million) 127 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) Total 89 Sponsored Health Insurance Schemes, (Uttar Pradesh Health Systems Karnataka IFC projects contribute to 800,000 Strengthening Project, people receiving access to P100304): 52 improved health services through (Tamil Nadu Health Systems, Health Insurance in Meghalaya P075058 and P118830): 37 and IFC Update: 5 PPP mandates Additional 9.4 million patients closed (as of June 2015) reached in supported private health facilities by 2017 Additional 21 private health facilities strengthened through Update: Achieved. IFC engagements 19,187,555 patients served IFC Update: Achieved Public sector hospitals that have 22 district hospitals and 3 achieved entry level-pre- medical colleges facilities in accreditation in the three states Jharkhand strengthened (UP, Tamil Nadu, and Karnataka) through IFC engagements increased from 6 in 2011 to 50 by 2017 3 public hospitals in AP upgraded to provide specialty Update: Partially Achieved diagnostics. Help build a 22 NABH entry level pre- tertiary care hospital in Patna accreditation or better Bihar through PPP transaction 13 Hospitals in Tamil Nadu (Tamil Improved operational Nadu Health Systems, P075058 efficiency of Shija Hospital in and P118830) Imphal 2 Hospitals in (Karnataka Health System Development and Reform, P071160) 128 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) 7 in Uttar Pradesh(Uttar Pradesh Health Systems Strengthening Project, P100304” 17.5% of 40 hospitals in accreditation program. Reduce under- Inadequate 3.3 Improved child nutrition Multi-sectoral nutrition action Completed financing: nutrition among systems/institutions delivery systems in targeted plans developed and Bihar Rural Livelihoods – JEEViKA; children aged 0-3 to address high States implemented in targeted Karnataka Multisectoral Nutrition Pilot from 40% (2005- levels of child districts in 6 states 06) to 27% malnutrition (40% Increase from 0% in 2015 to 70% in Ongoing financing: ICDS Systems of the world’s 2017 of Anganwadi Centers(AWCs) Update: Achieved Strengthening & Nutrition malnourished in target districts implementing Eight states have action plans Improvement Program (ISSNIP); children live in community-based activities with convergence of programs Andhra Pradesh Rural Inclusive India) focused on Infant and Young Child of the Depts. of Health, PRI, IT, Growth; National Rural Livelihoods Feeding practices. Agriculture, Horticulture and Program; North East Rural Livelihoods Rural Development and innovations. States are Andhra Key ASA: Multisectoral Nutrition Action Update: Achieved in Bihar; Social Observatory for Rural 100.3% (353,259 AWCs of 352,137 Pradesh; Bihar, Chhattisgarh, Food & Nutrition Security in National project AWCs across eight states Jharkhand, Maharashtra, Rural Livelihoods Mission; Community of AP, BH, CH, JH, MA, MP, RJ and Madhya Pradesh, Rasjasthan, Food and Nutrition Initiatives in High UP) are implementing monthly and Uttar Pradesh Poverty States; Nutrition in India community based activities eBook, Institutional Arrangements for focusing on IYCF practices. Note: Inter-personal counseling Nutrition in India: An Assessment of community based activities are guidelines and tools material Capacity. Community managed food being undertaken in an additional for promoting positive IYCF and nutrition security initiatives in high 1,122 non-ISSNIP AWCs, hence a behaviors developed and poverty states in India; Health, adopted by 8 states nutrition, and population Technical greater than 100% achievement. assistance to North East states; Update: Achieved Institutional arrangements for nutrition P121731: Integrated Child Integrated Child Development in India: an assessment of capacity Development Services (ICDS) Services (ICDS) Systems Systems Strengthening and Nutrition Improvement Program Strengthening and Nutrition 129 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) Improvement Program (ISSNIP), Increase from 0% in 2015 to 40% in P121731: The guidelines for 2017 of mothers (pregnant and interpersonal counseling have lactating women) in project been adopted by MWCD and districts who report receiving eight project states of ISSNIP as counselling on Infant and Young of December 2015. 15 training Child Feeding practices through modules have been developed Inter-Personal Communication and disseminated to project (IPC) activities delivered by AWWs states through MWCD to build capacities of AWWs for Update: Mostly Achieved counseling pregnant and 39% of pregnant and lactating lactating women and their key women in ISSNIP districts from influencers in maternal and eight states of AP, BH, CH, JH, MA, IYCF practices through a MP, RJ and UP were counseled on cascading down, incremental IYCF through community based learning approach. Job aids for events delivered by AWWs AWWs to facilitate the counseling in maternal and IYCF Integrated Child Development practices have been developed Services (ICDS) Systems and disseminated to project Strengthening and Nutrition states and are in use. Finally, Improvement Program (ISSNIP), through MWCD, supervision P121731 and observation quality checklists are being shared with states to support improvement 400,000 additional Below Poverty in learning and counseling of Line (BPL) households with access to community management AWWs wrt. maternal and IYCF nutrition centers practices. Update: Mostly Achieved 10,000 additional community service delivery centers organized by 2017 130 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) Approximately 362,000 households Update: Partially Achieved Note: The 1750 Community 1750 community management Management Nutrition Centers nutrition centers were established under the AP Rural established in Andhra Pradesh. Poverty Reduction Project were These centers’ nutrition closed because the function was function was taken over by merged with the Integrated Child Anganwadi Centers in 2014, at Development Services program which time the centers were which runs Anganwadi Centers closed. (AWCs). AWCs in AP and Telangana reach 725,000 pregnant and lactating women, of which approximately half are BPL (estimate based on estimate of households in the lowest wealth index using ICDS services in Rapid Survey of Children 2013-2014 report). MIS does not track whether users are from BPL households. (Bihar Rural Livelihoods Project, P090764; AP Rural Inclusive Growth Project, P152210; Telangana Rural Inclusive Growth Project, P143608; National Rural Livelihoods Project, P104164): Universalize Poor quality of 3.4 Improved access and quality New system of National Ongoing financing: Tejaswini: access to education at all of education Assessment of Student Socioeconomic Empowerment of secondary levels Performance developed and Adolescent Girls & Young Women; education by 2017 Enrolment of students in implemented (for grade X) by Elementary Education III; Enhancing Secondary (Grade IX and X) 2014 Teacher Effectiveness in Bihar; MP 131 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) Improve quality at Low learning increased from 28 million in 2012 Higher Education Quality all Education outcomes, to 40 million by 2017 Update: Achieved Improvement; Nai Manzil – Education levels and align Low retention rates The first round of NAS for grade and Skills Training for Minorities; programs to and enrollment at Update: Mostly Achieved 10 was conducted in 2014-15 Secondary Education market needs the secondary level The enrolment of students in grades IX and X increased to 39.2 Proportion of RMSA schools Limited access to million (source: latest available with all core subject specific Key ASA: Teachers Education; education by UDISE 2015-16) teachers available increased Secondary Education; Teacher's underprivileged from 22.5 % in 2009-10 to 40% Education and Professional children/youth Gross Graduation rate increased by 2017 Development- International Best from 74% in 2010 to 88% by 2017 Practice; Higher Education in Madhya Update: Not Achieved Pradesh – The Way Forward; Update: Not Achieved The proportion of RMSA Explorations in Secondary Education; The gross graduation rate declined schools with all core subject Strengthening teacher capacity in Bihar to 69% specific teachers has remained through ICT: designing innovative the same at 22.5% solution to unique challenges; Gender Parity Index (GPI) in Vocational Education; Andhra Pradesh secondary schools increased from The proportion of schools with Randomized Evaluation Study; Does 94% in 2010 to 98% by 2017 minimum five subject teachers information improve school and a principal has gone up accountability: Results of a large Update: Achieved from 62% in 2009-10 to 90% in randomized trial; Higher Education The GPI has increased to 1.02 2015-16 Reform; Skills to Jobs Platform - Role of (source: RFD shared by MHRD at Non State Players; IFC’s Gujarat the 8th RMSA JRM, September University PPP and Meghalaya College 2016) PPPs (Secondary Education Project, P118445) Implement direct Limited state-level 3.5 Increased coverage of social IT application to track benefit Ongoing financing: cash transfer for institutional protection programs in targeted payments established in at Telengana Rural Inclusive Growth; major subsidies capacity and States least one state by 2015 Bihar Integrated Social Protection and welfare- systems to Strengthening related beneficiary implement social Coverage of program beneficiaries Update: Mostly Achieved payments protection in targeted districts increased from MIS application for managing Key ASA: Assessing implementation of programs (including 18% in 2012 to 30% by 2017 social security pensions in Bihar Social Protection programs in Bihar 132 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) beneficiary is developed and being pilot including social pension & NREGA; awareness, Update: Achieved tested in two districts. Survey on the Status of Adolescent enrollment, 41.6% as of December 2016 Girls and Vulnerable Women in benefits payments (P118826 Bihar Integrated Social State disability and older Jharkhand; Social Pensions; Jharkhand and tracking and Protection Strengthening Project) persons policies developed for Social Protection; Chhattisgarh accountability) at least one state by 2015 RSBY/PDS Evaluation; Community- based Food Security Enhancement; Update: Achieved Service Level Benchmarking, Citizen Draft state policies for persons Voice and Performance with disabilities and older persons developed in Bihar and awaiting state approval. At least 50 social protection service centers established by 2017 Update: Partially Achieved 20 social care service centres under the Bihar Integrated Social Protection Strengthening Project (P118826) operational and remaining 83 to be operational in FY18 33 one-stop shops established under the Andhra Pradesh Rural Inclusive Growth Project (P152210) Create economic Limited livelihood 3.6 Enhanced rural livelihood At least 50,000 additional Self Completed financing: opportunities to opportunities (farm opportunities in targeted States Help Groups (SHGs) have been Bihar Rural Livelihoods JEEViKA; improve rural and non-farm) for formed, including poor women Economic Empowerment Project for livelihood of poor rural poor, SHGs Women (SEWA); Sustainable Rural households especially women Livelihoods and Security through 133 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) Additional 1.3 million supported Update: Achieved Innovations in Land and Ecosystem poor households report a minimum Nearly 990,000 additional SHGs Mgmt/Additional GEF financing to India of 20% increase in income by 2017 exclusively of poor women NAIP; Orissa Rural Livelihoods; Bihar from rural households have Rural Livelihood Project AF Update: Achieved been formed during the CPS 1,389,000 households from ICR period. Ongoing financing: Creating Inclusive studies cumulatively have Business Models for Marginalized increased their incomes by a P102329 Rajasthan Rural Tribal Communities in Odisha, minimum of 20%. Livelihoods Jharkhand and Madhya Pradesh; P093478 Orissa Livelihoods National Rural Livelihoods Project; P090764 Bihar Livelihoods Andhra Pradesh Rural Inclusive P102330 Northeast Rural Growth; Bihar Transformative Livelihoods Development; North East Rural P079708 Tamil Nadu Livelihoods (NERLP); Rajasthan Rural Empowerment and Poverty Livelihoods (RRLP); West Bengal Reduction Institutional Strengthening of Gram P0102331 Madhya Pradesh Panchayats II; Jharkhand Opportunities District Poverty Initiative for Harnessing Rural Growth; Projects Telangana Rural Inclusive Growth P104164 National Rural Project Livelihoods Project P159576 Bihar Transformative Key ASA: Community managed food Development Project and nutrition security initiatives in high poverty states in India; Technical assistance facility for strengthening implementation of rural livelihood projects at the national level (2009 – 2013); Welfare and poverty impacts of India’s national rural employment guarantee scheme: evidence from Andhra Pradesh; Women’s empowerment and socio-economic outcomes: impacts of the Andhra 134 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) Pradesh rural poverty reduction program Improve financial 40% of households 3.7 Increased access to financial 10 additional number of lenders Completed financing: Services do not avail any services in targeted states for low-income housing finance Bihar Rural Livelihoods – JEEViKA; TA to banking services created in target States by Enhance Financial Access through Provide access to Additional 3.5 million households 2017 Technology in Andhra Pradesh; Orissa banking services Organized financial with access to formal financial Rural Livelihoods; Second Madhya to 90% of Indian sector does not services by 2017. Update: Pradesh District Poverty Initiatives households reach out to a large (MPDPIP-II); Scaling Up Sustainable and segment of the Update: Achieved Responsible Microfinance; Tamil Nadu population 5.7 million additional households 27 MFIs supported through Empowerment and Poverty Reduction have been able to access formal IFC’s engagement Ongoing financing: National Rural financial services during the CPS Livelihood Project; State Livelihood period Update: Mostly Achieved Projects (Rajasthan, Jharkhand, Bihar, 24 MFI’s supported through and states in the Northeast); Scaling Up P119043 India: Scaling Up IFC’s engagement. Sustainable and Responsible Sustainable and Responsible Microfinance; Low-income Housing; Microfinance MSME Growth Innovation and Inclusive P102329 Rajasthan Rural Finance; IFC investments in MFIs; IFC Livelihoods equity in banks and long-term finance P093478 Orissa Livelihoods institutions; IFC’s short-term trade P090764 Bihar Livelihoods finance and liquidity to banks. P102330 Northeast Rural Livelihoods Key ASA: Financial Literacy and P079708 Tamil Nadu Education; Financial Inclusion in LIS Empowerment and Poverty (Madhya Pradesh and Northeast Reduction (Meghalaya); IFC Micro-and small and P0102331 Madhya Pradesh District medium enterprise access to finance: Poverty Initiative Projects Capacity Building Programs with Banks P104164 National Livelihoods and NBFCs; IFC work to facilitate G2P P159576 Bihar Transformative for health services Development Project 135 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) Additional 28 million loans provided to micro-, small-, and medium-enterprises in targeted states by 2017 (including 1.0 million to female-owned microenterprises) Update: Achieved IFC Update: Loans provided to additional 85,396,564 micro- small- and medium enterprises through advisory and investment services Additional 750,000 payment accounts opened by 2017 Update: Achieved IFC update: 944,706 people registered in the G2P platform for health benefit payment in Bihar (588947 G2P Payments) Strengthen natural Weak or non- 3.8 Enhanced disaster risk Master plan for Flood Completed financing: disaster existent institutions management system Management prepared for Kosi Bihar Flood Management Information management/ and mechanisms for river basin by 2015 System Phase II resilience enhanced disaster At least 3 states have installed an risk management operational Early Warning Update: Achieved Ongoing financing: and climate Dissemination Systems (EWDS)in Master Plan for Flood and Bihar Flood Rehabilitation Phase II; resilience, targeted vulnerable communities Sediment Management for Kosi Bihar Kosi Flood Recovery; Jhelum and especially in by 2017 Basin has been completed Tawi Flood Recovery; National Cyclone agriculture and (P122096 Bihar Kosi Flood Risk Mitigation Project-II; Odisha water-intensive Update: Achieved Recovery Project) Disaster Recovery; Uttarakhand sectors States of Odisha, Andhra Pradesh Disaster Recovery; Andhra Pradesh and Tamil Nadu have installed Disaster Recovery; National Cyclone 136 Government Strategic Issues and CPS Outcomes and Indicators World Bank Group Program (Ongoing Indicative Milestones Objectives (12th Obstacles and Indicative) Plan Goals) EWDS and the system is partly Multi-hazard risk and Risk Mitigation Project (1); Tamil Nadu operational. vulnerability assessment and Puducherry Coastal Disaster Risk prepared for India’s coastal Reduction P092217 National Cyclone Risk areas by 2015 Mitigation Project I + AF —Andhra Key ASA: Bihar Kosi Flood and Climate Pradesh and Odisha: 160 EWDS Update: Achieved Adaptation; Support to National will be installed and be operational Multi-hazard risk and Cyclone Risk Mitigation Program by June 2017. vulnerability assessment covering coastal areas of West P143382 TN and Puducherry Early Bengal, Odisha, AP, Tamil Nadu, Warning System: 400 EWDS will be Puducherry, Kerala, Karnataka, installed and be operational by Goa, Maharashtra, Gujarat has June 2017 completed (P092217 National Cyclone — AP and Odisha) 400 Cyclone shelters completed in targeted coastal areas by 2017 Update: Achieved P092217 National Cyclone AP and Odisha - A total of 450 MPES completed P153382 TN and Puducherry - A total of 120 MPES completed. 900 Remote Public Alert Communication System installed by 2015 Update: Mostly Achieved 560 Remote Public Alert Systems have been installed 137 Table 2 (CLR Annex 2): IBRD/IDA Commitments FY13–17 As of Jun 30, 2017 IBRD IDA Fiscal LIS/SCS Project Name ($US$, (US$, Others Global Practice Year Focus millions) millions) FY13 Kerala State Transport II 216.0 Transport & ICT Tamil Nadu Puducherry Disaster Risk Reduction 236.0 Social, Urban, Rural and Resilience Low-Income Housing Finance 100.0 LIS/SCS Finance & Markets National AIDS Control Support 255.0 Health, Nutrition and Population Bihar Panchayat Strengthening 84.0 LIS/SCS Governance Karnataka Watershed II 60.0 Agriculture ICDS System Strength & Nutrition Improvement 106.0 LIS/SCS Health Nutrition and Population Himachal Pradesh Green Growth DPL 100.0 Environment & Natural Resources Karnataka Health AF 70.0 Health, Nutrition and Population Himachal Pradesh State Roads AF 61.7 Transport & ICT Himachal Pradesh Mid-Himalayan Watersheds AF 37.0 Agriculture FY13 484.7 841.0 Total FY14 Technology Center Systems (TCSP) 200.0 Trade and Competitiveness Eastern Dedicated Freight Corridor II 1,100.0 LIS/SCS Transport & ICT Gujarat State Highway II (GSHP II) 175.0 Transport & ICT Natl Highways Inter-Connectivity 500.0 Transport & ICT Mizoram State Roads II- Regional Connectivity 107.0 LIS/SCS Transport & ICT Elementary Education (SSA) III 1,006.2 Education Accelerating Universal Access to TB Care 100.0 Health Nutrition and Population Uttarakhand Decentralized Watershed Dev II 121.2 LIS/SCS Agriculture Maharashtra Rural Water Supply and Sanitation Program 165.0 Water Odisha Disaster Recovery Project 153.0 LIS/SCS Social, Urban, Rural and Resilience 138 Bihar Integrated SP Strengthening 84.0 LIS/SCS Social Protection Rural Water Supply and Sanitation for Low Income States 500.0 LIS/SCS Water Rajasthan Road Sector Modernization 160.0 LIS/SCS Trade and Competitiveness Uttarakhand Disaster Recovery 250.0 LIS/SCS Social, Urban, Rural and Resilience UP Water Sector Restructuring Project II 360.0 LIS/SCS Water Uttarakhand RWSS Project AF 24.0 Water National Cyclone Risk Mitigation AF 104.0 Social, Urban, Rural and Resilience Himachal Pradesh Green Growth DPL II (CTF) 100.0 FY14 1,975.0 3,134.4 100.0 Total FY15 Tamil Nadu Sustainable Urban Development 400.0 Social, Urban, Rural and Resilience Punjab Rural Water Sector Improvement 248.0 Water MSME Innovation and Inclusion 500.0 Finance & Markets Telangana Rural Inclusive Growth 75.0 Agriculture Andhra Pradesh Rural Inclusive Growth 75.0 Agriculture National Watersheds (Neeranchal) 178.5 Agriculture Enhancing Teacher Effectiveness in Bihar 250.0 LIS/SCS Education Tamil Nadu Road Sector II 300.0 Transport & ICT National Cyclone Risk Mitigation II 308.4 Social, Urban, Rural and Resilience Jhelum and Tawi Flood Recovery 250.0 LIS/SCS Social, Urban, Rural and Resilience Eastern Dedicated Freight Corridor III 650.0 LIS/SCS Transport & ICT Madhya Pradesh Higher Education 300.0 LIS/SCS Education Partial Risk Sharing Facility in EE (GEF) 18.0 Energy and Extractives Efficient and Sustainable City Bus Service (GEF) 9.2 Transport & ICT Climate Change and Livelihoods (GEF) 8.0 Agriculture Andhra Pradesh Disaster Recovery 250.0 LIS/SCS Social, Urban, Rural and Resilience FY15 2,098.0 1686.9 35.2 Total FY16 IN: BIHAR KOSI BASIN DEVELOPMENT PROJECT 250 Social, Urban, Rural and North Eastern Region Power System Improvement Project 470 SCS Resilience IN Karnataka Urban Water Supply Modernization Project Energy and Extractives 139 INDIA: MADHYA PRADESH CITIZEN ACCESS TO RESPONSIVE 100 SERVICES PROJECT Water Tejaswini: Socioeconomic Empowerment of Adolescent Girls & Young Women 35 LIS Governance Himachal Pradesh Horticulture Development Project IN Swachh Bharat Mission Support Operation 63 Social Protection Technical Education Quality Improvement Project III Grid-Connected Rooftop Solar Program 135 SCS Agriculture Nai Manzil - Education and Skills Training for Minorities 150 Water First Programmatic Electricity Distribution Reform 201.5 Education Development Policy Loan for Rajasthan 500 Energy and Extractives Bihar Transformative Development Project 50 Education 250 Energy and Extractives 290 Agriculture FY16 2,820.0 1,024.5 Total FY17 Uttarakhand Health Systems Development Project 100 SCS Health Nutrition and Capacity Augmentation of the National Waterway- 1 (JAL 375 Population MARG VIKAS) Project Transport & ICT Nagaland Health Project 48 SCS Assam Citizen-Centric Service Delivery Project 39.2 Health Nutrition and National Hydrology Project 175 Population Shared Infrastructure for Solar Parks Project 75 Governance Andhra Pradesh 24X7 Power for All 240 Water Madhya Pradesh Urban Development Project 116.2 LIS Energy and Extractives Bihar Rural Roads Project 235 LIS Energy and Extractives Innovate in India for Inclusiveness 125 Social, Urban, Rural and Himachal Pradesh Public Financial Management Capacity 36 Resilience Building Program Transport & ICT Skills Strengthening for Industrial Value Enhancement 125 Trade & Competitiveness Operation Assam State Public Finance Institutional Reforms (ASPIRe) 35 Governance Project Additional Financing for Financing Energy Efficiency at Education MSMEs Project Skill India Mission Operation 250 5.19 Governance 140 Jharkhand Opportunities for Harnessing Rural Growth Project 100 West Bengal Institutional Strengthening of Gram Panchayats Environment & Natural Program II 210 Resources Additional Financing for Grid-Connected Rooftop Solar Program 22.9 Education Agriculture Social, Urban, Rural and Resilience Energy and Extractives FY17 1,776.4 508 28.1 Total Total 9,154.1 7,194.8 163.3 141 Table 3 (CLR Annex 3): Summary of World Bank Knowledge Services – India As of June 30, 2017 Product Name Completion Fiscal Year Responsible Global Practice INTEGRATION Recent Completions (FY13–17) India: Policy Notes on Power 2013 Energy & Extractives IN: Experience with PPPs in Infrastructu 2013 Energy & Extractives IN: Power Sector Stocktaking 2014 Energy & Extractives IN: CSP-Renew Egy Mkt Transformation I 2014 Energy & Extractives India Power Sector Diagnostic Review 2014 Energy & Extractives IN: Trans Policies & Reform Activities 2014 Transport & ICT E-Tools in Constr. Mgt. Report Dissemina 2014 Transport & ICT IN: TA for Beneficiary Verification 2014 Transport & ICT PSIA: Rural Road Development in India 2014 Transport & ICT PPPs Through FIs:Learnings & Way Forward 2014 Transport & ICT Energy Efficient Urban Street Lighting 2015 Energy & Extractives IN Policy note-Sustainable Power Sector 2015 Energy & Extractives State Highways and PPPs in India 2015 Transport & ICT Programmatic Approach forUrban Transport 2016 Transport & ICT PPP Knowledge and Capacity Building 2016 Transport & ICT NE India Multimodal Transport NLTA 2016 Transport & ICT Railway Station Redevelopment Workshop 2016 Transport & ICT TA on transport incl EV in Delhi 2016 Transport & ICT Inland Water Transport Workshop 2016 Transport & ICT India PPP 2016 Transport & ICT Improving Rural Power Supply 2017 Energy & Extractives Railways of India Development Fund 2017 Transport & ICT Streng. Instn. Dev. in WB funded Proj. 2017 Transport & ICT Intermodal Transport and Logistics 2017 Transport & ICT Underway - (FY17–18) Accelerating impact of transport infrast Transport & ICT Urban rail NLTA Transport & ICT Mizoram Roads and Trade Sectors NLTA Transport & ICT Impact Evaluation PMGSY Transport & ICT Kolkata Urban Transport Integration Transport & ICT Support to Indian Railway Reforms Transport & ICT IN: ICT-enabled Integration for GG Transport & ICT INCLUSION Recent Completions (FY13–17) IN: AP Randomized Eval Study 2013 Education TVET reform in West Bengal 2013 Education Fin Literacy & Education in India 2013 Social Protection IN: Social Dimen of Urbanztn 2013 Social Protection Teacher Education and Professional Devel 2014 Education IN: Foundation for CSR 2014 Education IN: HR for More Efftv Health II 2014 Health India: Health 2014 Health IN: Ser Del & Pub Spend Health 2014 Health IN: Inst Arrgmts for Nutrition 2014 Health 142 Multisectoral Nutrition Action in Bihar 2014 Health IN: Social Pensions MoRD 2014 Social Protection IN MP Higher Education ESW 2015 Education IN: Improving Skills Development 2015 Education IN: Bihar Capacity Building TA 2015 Education Improving Social Inclusion Health Ins. 2015 Health Nutrition in India: policy notes 2015 Health HNP TA to North East States 2015 Health Karnataka Impact Eval RBF Hospital Care 2015 Health Building Institutional Capacity of RSBY 2015 Social Protection Social Protection Programmatic TA 2015 Social Protection India Higher Education NLTA 2016 Education Vocational Education 2016 Education Allocation/funding formula 2016 Education PPP in Secondary Education Sector 2016 Education Workforce planning for teachers 2016 Education Teacher training and teacher performance 2016 Education India-Secondary Education Explorations 2016 Education Early Childhood Care and Education 2016 Education Support on Strategic Interventions under 2016 Education Measuring Learning in HE in India 2016 Education Examining Drop-out Rates in Engineering 2016 Education Urban Health, Nutrition and Population 2016 Health, Nutrition & Population South-South Knowledge & Learning 2016 Health, Nutrition & Population Science of Delivery 2016 Health, Nutrition & Population Resource Optimization Study 2016 Health, Nutrition & Population Learning from India's HIV Response 2016 Health, Nutrition & Population TA to Govt Sponsored Health Ins in India 2016 Health, Nutrition & Population Imprv. Nutri. through Multisc. Actions 2016 Health, Nutrition & Population Developing Social & Non-cognitive Tools 2016 Social Protection & Labor Combating Poverty: Role of Safety Nets 2016 Social Protection & Labor Human Development in Bihar 2016 Social Protection & Labor Higher Education Reforms 2017 Education Review RUSA Centrally Sponsored Scheme 2017 Education Skills to Jobs Platform- Role of NSP 2017 Education India: MS Determinants of HNP Outcomes 2017 Health, Nutrition & Population Strengthening Urban Safety Nets in India 2017 Social Protection & Labor Underway - (FY17–18) Tracer study: Higher Ed Graduates Education Non-financial Teacher Incentives-India Education Labor Market Data Analytics in India Education Skills Programmatic Cluster Education IN:ECD for the Poor : Evaluating Impact Health, Nutrition & Population TA on human resources for health and M&E Health, Nutrition & Population TB Detection and Social Networks Health, Nutrition & Population Evaluating Integration in the ICDS Health, Nutrition & Population UP Social Accountability Interventions Health, Nutrition & Population Human Development Outcomes Social Protection & Labor Inclusive Skills Development Social Protection & Labor Accelerating DBT in LIS Social Protection & Labor 143 TRANSFORMATION Recent Completions (FY13–17) IN: Natl Rul Livelihoods Impl Strength 2013 Agriculture IN: Agric Productivity 2014 Agriculture Foodgrains Policy Options 2014 Agriculture Food Security in Tribal Areas 2014 Agriculture Pilot Cold Chain Under PPP Arrangement 2015 Agriculture Livelihoods in intermediate towns 2016 Agriculture Agriculture and Poverty 2016 Agriculture Community-Managed FSN Initiatives 2016 Agriculture Development Interventions in Naxal Area 2016 Agriculture Community- based Food Security Enhanceme 2016 Agriculture Odisha NLTA 2017 Agriculture TA for National Rurban Mission 2017 Agriculture Post-Harvest Management and Agribusiness 2017 Agriculture Underway - (FY17–18) Social Observatory Agriculture UTKARSH SUSTAINABILITY Recent Completions (FY13–17) Poverty and Role of Natural Resources 2013 Environment & Natural Resources IN: Inclusive Cities Workshop 2013 Social, Urban, Rural and Resilience IN: Rur Credit Coops Proj IE 2013 Social, Urban, Rural and Resilience India Urban Capacity Building 2013 Social, Urban, Rural and Resilience IN: Development of SAR Standards of PDNA 2013 Social, Urban, Rural and Resilience Unlocking Urban Land Values 2013 Social, Urban, Rural and Resilience Workshop on Governance 2014 Social, Urban, Rural and Resilience IN: AP Rural Poverty Impact Evaluation 2014 Social, Urban, Rural and Resilience India Cultural Heritage Program 2014 Social, Urban, Rural and Resilience India Gender and Development AAA 2014 Water Development Along the Eastern DFC 2014 Water IE WSP rural sanitation India 2014 Water Just-in-Time ESW 2014 Water Knowledge Forum on sanitation 2014 Water IN/BA3.1 Service Delivery Assessment 2014 Water Green Growth in Himachal Pradesh 2015 Environment & Natural Resources India DEA Urban Workshop 2015 Social, Urban, Rural and Resilience India - Partnership for Market Readiness 2015 Social, Urban, Rural and Resilience IN: BKFR and Climate Adaptation Program 2015 Social, Urban, Rural and Resilience Regulatn & Pro-poor strateg. 2015 Water IN Rajasthan WSS NLTA 2015 Water Support for NUSP 2015 Water City Sanitation Plans 2015 Water Supporting Impact Evaluation in WSS 2015 Water Supporting Drinking Water Security Pilot 2015 Water SS-DPSP India 2015 Water Institutional Capacity & Gender 2015 Water IN Wtr PPP Options for Mid-sized Cities 2015 Water IN RWSS Proj for LIS- Support to MoDWS 2015 Water IN: Cap Dev for Wtr Mgt 2015 Water 144 Poverty and Role of Natural Resources 2016 Environment & Natural Resources The "missing middle" in urban India 2016 Social, Urban, Rural and Resilience Urban Street Vending Regulations 2016 Social, Urban, Rural and Resilience UP Corridor Regional Econ. 2016 Social, Urban, Rural and Resilience IN: NLRMP Implem Support 2016 Social, Urban, Rural and Resilience LGAF facilitation and follow up 2016 Social, Urban, Rural and Resilience Land & Dev. Selected Issues Phase 1 2016 Social, Urban, Rural and Resilience Capacity Building for Land Governance 2016 Social, Urban, Rural and Resilience IN: Development Programs in Tribal Areas 2016 Social, Urban, Rural and Resilience IN Urban Services Delivery in Punjab 2016 Water Strengthening Sector Policy Rural San 2016 Water Strengthening LG Sanitation Capacity 2016 Water India WASH Poverty Diagnostics 2016 Water Benchmarkg & Citizen Voice 2016 Water IN Ganga Industrial Wastewater PPP Proj 2016 Water Social Inclusion Assmt India Portfoilo 2017 Social, Urban, Rural and Resilience Regional Pilot: SAR-UP SWM Project 2017 Social, Urban, Rural and Resilience Orissa State Climate Change Action Plan 2017 Social, Urban, Rural and Resilience Urban Transformation 2017 Social, Urban, Rural and Resilience Ganga Water Balance Study 2017 Water Rajasthan Water Sector Study 2017 Water Study on Water Framework for India 2017 Water Study on Wastewater Market 2017 Water Legal and Institutional study 2017 Water Independent Skill Advisory Panel 2017 Water IN Water Strategy 2017 Water Programmatic AAA for Ganga 2017 Water Strengthening Client RWS Operations 2017 Water Underway - (FY17–18) Forest Fire Prevention and Management Environment & Natural Resources Air Quality Management in India Environment & Natural Resources 100 Smart Cities 500 Cities Social, Urban, Rural and Resilience Urban India-Economic Mobility for Women Social, Urban, Rural and Resilience Support programs & projects Social, Urban, Rural and Resilience Urban Revitalization in India Social, Urban, Rural and Resilience IE India Sanitation/Insurance SIEF Water IN - Punjab - IE on Rural WSS Water GOVERNANCE Recent Completions (FY13–17) IN:Capacity Bldg on Contracts Management 2013 Governance Macro Economics & Fiscal IN Bihar Growth Assessment 2013 Management Macro Economics & Fiscal India Economic Update 2013 Management IN: Poverty Profile Update 2013 Poverty and Equity India manufacturing plan implementation 2013 Trade & Competitiveness IN: Procurement Capacity Building 2014 Governance India DRM Study Update 2014 Governance Study- Transaction Costs for Bidders 2014 Governance IN:Review of Decentralization Experience 2014 Governance IN eGovernance in the North East 2014 Governance 145 Macro Economics & Fiscal Karnataka PFM Reform Action Plan 2014 Management Macro Economics & Fiscal India Development Update - Sep. 2013 2014 Management Macro Economics & Fiscal Growth, Inclusion and Competitiveness 2014 Management Macro Economics & Fiscal Regulatory Impediments to Firm Growth 2014 Management Macro Economics & Fiscal India Development Update - Apr. 2014 2014 Management India States Report 2014 Poverty and Equity Rainfall variability & welfare Rural Ind 2015 Governance IPR Action- e-Learning for Procurement 2015 Governance LIS Procurement Observatories 2015 Governance Peer network on Performance Management 2015 Governance IN: Madhya Pradesh Service Delivery 2015 Governance Orissa Mining and Inclusive Growth 2015 Governance Capacity Support-Indian Bureau of Mines 2015 Governance Chattisgarh Capacity Building TA Program 2015 Governance Macro Economics & Fiscal Uttar Pradesh Capacity Building Program 2015 Management Macro Economics & Fiscal IN: Fiscal Analysis of LIS 2015 Management Macro Economics & Fiscal Product Space Analysis 2015 Management Macro Economics & Fiscal Policy Notes for Low Income States (LIS) 2015 Management Manufacturing Plan Implementation 2 2015 Trade & Competitiveness India Development Update - Oct 2014 2016 Governance Public Sector Pay Policy 2016 Governance Governance in Meghalaya 2016 Governance Improving Efficiency of Procurement Work 2016 Governance IN: Jharkhand: Capacity Building Program 2016 Governance MP Capacity Building Tech Assistance 2016 Governance Workshop on Cooperative Federalism 2016 Governance Procurement Observatories (Phase 2) 2016 Governance Improving the functioning of DRBs 2016 Governance IN: Dev of Program Classification System 2016 Governance Enhancing Quality of Service Delivery 2016 Governance Service Delivery Cluster 2016 Governance Macro Economics & Fiscal India-JIT support for PDMA establishment 2016 Management Macro Economics & Fiscal Subnational DeMPA Rajasthan 2016 Management Macro Economics & Fiscal UP Development Assessment 2016 Management Macro Economics & Fiscal Spatial Development and Agglomeration 2016 Management Macro Economics & Fiscal Effects of Land Misallocation on Capital 2016 Management 146 Macro Economics & Fiscal Gender, Jobs and Growth 2016 Management Analytical Briefs on India's States 2016 Poverty and Equity Poverty and Shared Prosperity Diagnostic 2016 Poverty and Equity Competitive Cities in India 2016 Trade & Competitiveness IN: Fostering PPP Infrastructure Finance 2016 Finance & Markets National Risk Assessment AML India 2016 Finance & Markets Best Practices in Proc. & Logistics Magt 2017 Governance Contract Management Training 2017 Governance Capacity Building of Office of the AAAD 2017 Governance Himachal Pradesh PFM Capacity Building 2017 Governance CSS: Change in fund flow procedures 2017 Governance Assessment of Power Grid under APA 2017 Governance Audit Workshop: SSA Program 2017 Governance Audit Workshop for the RMSA Program 2017 Governance e-procurement Impact Assessment 2017 Governance Using Spatial Data in India Program 2017 Poverty & Equity Benchmarking India 2017 Poverty & Equity Poverty and Shared Prosperity Cluster 2017 Poverty & Equity Domestic Migration 2017 Trade & Competitiveness Integration and Price Transmission 2017 Trade & Competitiveness Support to DIPP on Startup India 2017 Trade & Competitiveness India Economic Integration Cluster 2017 Trade & Competitiveness Underway - (FY17–18) India#C008 Pension Supervsn Coverage Finance & Markets India Knowledge Partnership with RBI Finance & Markets Enhancing Supervisory Capacity of RBI Finance & Markets India FSAP Update Finance & Markets IN: Support to the CGA, MoF, GoI Governance Governance Tool Kit for SPVs Governance Capacity Building-New Procurement Policy Governance Procurement Observatories (Phase 3) Governance Improving Governance in Bank fin Ops Governance Contract Management - Capacity Building Governance Developing PFM Reform Strategy for GOI Governance Macro Economics & Fiscal Rajasthan-Inclusive and sustained growth Management Macro Economics & Fiscal India Support for Debt Management Management Macro Economics & Fiscal Madhya Pradesh -- Growth report Management Macro Economics & Fiscal Just-in-time Macro Monitoring & Analysis Management Macro Economics & Fiscal India: Prog. Macro Monitoring Management Macro Economics & Fiscal India: Prog Fiscal Policy Analysis Management Piloting CAPI solutions for NSSO Poverty and Equity India Ease of Doing Business Trade & Competitiveness India Ease of Doing Business - Track I Trade & Competitiveness OTHER 147 Recent Completions (FY13–17) Textile Firms in Mumbai 2014 Other A randomized Experiment in India 2014 Other 100s Good Management Stick? 2014 Other Innovations to Reduce Vulnerability 2014 Other Labor Policy Reform in India 2014 Other Knowledge Exchanges 2015 Other India Development Update - Apr 2015 2016 Other ILLI Support to Sanitation in India 2016 Other Capacity Building Technical Assistance t 2016 Other India: Bihar Higher Education 2016 Other Governance reform in higher education 2016 Other Rajasthan Capacity Building NLTA 2016 Other Electricity Unreliability in India (2) 2016 Other India Innovation Expansion for Tilburg U 2016 Other Bihar Rural Employment Guarantee 2016 Other Household Electrification - Rural India 2016 Other Impact Evaluation of Theater for Develop 2016 Other Spatial Distribution of Firms/Households 2017 Other Overfishing and Income Dynamics in India 2017 Other OKS support to NACO 2017 Other Underway - (FY17–18) Nonfarm Occupations India Other Groundwater depletion in India Other Drip Irrigation in AP Other Drip irrigation in AP Other 148 Table 4 (CLR Annex 4): IFC Committed and Disbursed Outstanding Investment Portfolio As of 6/30/2017 (in US$ Millions) Committed Disbursed Outstanding Loan Institution Short Quasi GT/R Particip Quasi *GT/ Commitment Fiscal Year Loan Repayment Equity Loan Equity Participant Name Equitya M ant Equitya RM - IFC 2005/2009/2008 ADPCL 27.78 22.72 11.52 0 0 0 27.78 11.52 0 0 0 2009/2006/2012 AHEL 21.43 24.90 12.64 0 0 0 21.43 12.64 0 0 0 2005 APIDC Biotech 0 0 2.96 0 0 0 0 2.96 0 0 0 2009/2014 APPL 0 0 7.36 0 0 0 0 4.15 0 0 0 AST Telecom 1.70 1.05 0 0 0 0 1.70 0 0 0 0 2005/2010/2011/2003 ATL 7.50 43.12 0 0 0 0 7.50 0 0 0 0 2010/2013/2014/2017/2012 AU Financiers 52.22 22.93 15.52 0 0 0 51.84 15.52 0 0 0 2010/2017 Aadhar 0 0 5.93 0 0 0 0 5.93 0 0 0 Aavishkaar MFI 2009/2007 0 0 0.31 0 0 0 0 0.00 0 0 0 I AavishkaarMFI 2010/2013 0 0 4.15 0 0 0 0 3.90 0 0 0 II Aavishkaar 2011 0 0 15.00 0 0 0 0 14.69 0 0 0 MSME 2017 Aavas 20.12 0 0 0 0 0 0 0 0 0 0 2015 Acme Gurgaon 4.99 1.12 0 0 0 0 4.99 0 0 0 0 2015 Acme Mumbai 5.04 1.05 0 0 0 0 5.04 0 0 0 0 2015 Acme Rajdhani 5.02 1.09 0 0 0 0 5.02 0 0 0 0 2008 Aloe 2 0 0 11.03 0 0 0 0 11.03 0 0 0 2008 Ambit Pragma I 0 0 8.73 0 0 0 0 8.69 0 0 0 Ambit Pragma 2012 0 0 15.41 0 0 0 0 9.22 0 0 0 II 2008/2012 Angel Global 0 0 18.41 0 0 0 0 18.41 0 0 0 2017 Apollo AHLL 0 0 32.83 0 0 0 0 32.83 0 0 0 2010/2015/2012 Applied Solar 0 1.13 7.29 0 0 0 0 6.98 0 0 0 Aptus Value 2016 Housing 15.43 0 0 0 0 0 15.43 0 0 0 0 Finance 2016 Aspire Home 15.43 0 0 0 0 0 15.43 0 0 0 0 149 Attero 2011 0 0 0.00 5.00 0 0 0 0.00 5.00 0 0 Recycling 2010/2006/2011 Atul Ltd 1.61 24.25 0 0 0 0 1.61 0 0 0 0 Auro Mira 2010 0 0 0.00 0 0 0 0 0.00 0 0 0 Energy 2013/2017/2016 Avanse 0 0 8.57 0 0 0 0 6.98 0 0 0 2008 Avigo Fund II 0 0 8.67 0 0 0 0 7.83 0 0 0 2009 Avigo Fund III 0 0 13.92 0 0 0 0 13.04 0 0 0 Axis Bank 100.4 2014/2015/2012 0 0 0 0 0 92.84 0 0 0 0 4 2013 Azure Sun 1.77 0.46 0 0 0 0 1.77 0 0 0 0 Azure Clean 2015 11.60 1.70 0 0 0 0 11.60 0 0 0 0 2016 Azure PV 9.52 0 0 0 0 0 6.66 0 0 0 0 2016 Azure Raj 9.49 0 0 0 0 0 6.64 0 0 0 0 Azure Sunrise 11.83 2016 0 0 0 0 0 0 0 0 0 0 752 2017/2016 Azure Global 0 0 47.56 0 0 0 0 47.56 0 0 0 2016 BCL 0 0 0 23.21 0 0 0 0 23.21 0 0 2001/2004 BILT 0 0 0.63 0 0 0 0 0.63 0 0 0 BajajFin 154.7 2017 0 0 0 0 0 0 0 0 0 0 4 2012 Banyan Tree II 0 0 19.28 0 0 0 0 16.71 0 0 0 2014/2011/2015 Bandhan 0 0 69.69 0 0 0 0 69.69 0 0 0 2015 Bandhan Bank 0 0 22.22 24.76 0 0 0 22.22 24.76 0 0 2005 Bharat Biotech 0 0 0 3.30 0 0 0 0 3.30 0 0 Bhilwara 2010/2013/2012 0 0 15.26 0 0 0 0 15.24 0 0 0 Energy 2012 Bhilwara Wind 7.49 3.21 0 0 0 0 7.49 0 0 0 0 2017/2016 BigBasket 0 0 20.30 0 0 0 0 20.30 0 0 0 1993/1990/1985/1991 Bihar Sponge 3.11 14.22 0 0 0 0 3.11 0 0 0 0 2015 Bilt Paper 0 0 0.00 0 0 0 0 0.00 0 0 0 2017 Byjus 0 0 7.80 0 0 0 0 7.80 0 0 0 CGPL Ultra 251.7 251.7 2008 95.22 0 0 0 0 0 0 0 0 Mega 8 8 2005/2003/2012 COSMO 5.47 14.53 0 0 0 0 5.47 0 0 0 0 2016 CWCNSL 36.36 0 24.66 0 0 0 36.36 24.66 0 0 0 150 Capital First 106.7 2017/2016 0 0 0 0 0 54.16 0 0 0 0 7 2010/2011/2015 Chola 0 0 6.32 48.74 0 0 0 6.32 48.74 0 0 2010/2012 Craftsman 0 0 10.46 0 0 0 0 10.46 0 0 0 2017/2015 Cube Highways 73.44 0 10.00 90.00 0 0 0 3.54 31.88 0 0 DARP Encore 2016 0 0 5.46 0 0 0 0 3.60 0 0 0 ARC DARP Altico 2017/2015/2016 0 0 0 71.64 0 0 0 0 71.64 0 0 Ind P Ltd 2014 DJ Energy P Ltd 21.74 2.18 0 0 0 0 21.74 0 0 0 0 2005/2009/2006/2016 DSCL 20.00 59.68 0 0 0 0 20.00 0 0 0 0 2013/2003/2004 Dewan 58.33 24.38 0 0 0 0 58.33 0 0 0 0 2012 Dunar Foods 0 0 14.01 0 0 0 0 12.02 0 0 0 2017 ESIP Blackbuck 0 0 10.51 0 0 0 0 10.51 0 0 0 ESIP 2017 0 0 10.06 0 0 0 0 0 0 0 0 Power2SME ETC Agro 2017 31.10 0 0 0 0 0 31.10 0 0 0 0 Processing 2013 Ecolibrium 0 0 0.75 0 0 0 0 0.75 0 0 0 2012 Educomp 30.00 0 0 10.00 0 0 30.00 0 10.00 0 0 2007 Electrotherm 13.00 2.00 0 0 0 0 13.00 0 0 0 0 2014/2015/2012 Equitas 0 0 16.71 0 0 0 0 16.71 0 0 0 Equitas 2015 9.28 0 0 0 0 0 9.28 0 0 0 0 Microfin 2015 Everstone III 0 0 50.00 0 0 0 0 12.50 0 0 0 2015 Eye-Q Vision 0 0 5.49 0 0 0 0 5.49 0 0 0 FINO PayTech 2010/2017/2007 0 0 3.22 3.20 0 0 0 3.22 3.20 0 0 Ltd 2017 FRV Solar India 28.78 0 0 0 0 0 0 0 0 0 0 2010/2006/2017/2014/2011/ Federal Bank 100.0 0 2.46 0 0 0 0 2.46 0 0 0 2016/2008/2012 0 2013/2008 Finechem 2.86 17.14 12.83 0 0 0 2.86 12.06 0 0 0 2014 Flexituff 0 0 3.49 9.00 0 0 0 3.49 9.00 0 0 Forum 2012 0 0 8.00 0 0 0 0 4.16 0 0 0 Synergies 2013/2017 Fortis Health 0 0 50.46 0 0 0 0 50.46 0 0 0 Fullerton India 147.0 2017/2015/2016 0 0 0 0 0 69.63 0 0 0 0 0 151 Future 2017 Consumer 0 0 0.00 22.10 0 0 0 0.00 22.10 0 0 India GLENMARK 2016 0 0 0 75.00 0 0 0 0 75.00 0 0 PHARMAC 2007/2008 GSPL 21.76 34.74 0 0 0 0 21.76 0 0 0 0 2014 Gaja II 0 0 24.95 0 0 0 0 3.70 0 0 0 2011 Gamesa India 4.56 8.06 0 0 0 0 4.56 0 0 0 0 2009/2017/2007/2012 Granules 57.52 13.79 0 0 0 0 23.31 0 0 0 0 Grameen 2017 20.89 0 0 0 0 0 20.89 0 0 0 0 Koota Green Infra 2013 5.53 1.45 0 0 0 0 5.53 0 0 0 0 20MW Green Infra 2013 1.44 0.38 0 0 0 0 1.44 0 0 0 0 5MW Green Infra 2015 42.71 3.16 0 0 0 0 39.88 0 0 0 0 Wind 2016 HCG 0 0 17.94 0 0 0 0 11.75 0 0 0 1993/2017/1987/1978/1990/ HDFC 200.0 144.00 0 0 0 0 0 0 0 0 0 2003/2004/1991 0 2009/2013 HIKAL 8.00 15.00 4.14 0 0 0 8.00 4.14 0 0 0 2008 HNGFG 0.57 7.36 0 0 0 0 0.57 0 0 0 0 Hero 2017 0 0 62.50 0 0 0 0 25.00 0 0 0 Renewable 2009/2011 Himadri 1.50 5.50 0 0 0 0 1.50 0 0 0 0 2010/2011 Husk Power 0 0 0 0.00 0 0 0 0 0.00 0 0 2005/2010/2006/1998 IDFC 53.66 50.00 0 0 0 0 53.66 0 0 0 0 IDFC Bank 2016 0 0 3.39 0 0 0 0 3.39 0 0 0 Limited IDG Ventures 2017 0 0 20.00 0 0 0 0 5.69 0 0 0 India Fund III 2013 IFMR Rural 0 0 0 6.19 0 0 0 0 0 0 0 2006 IHDC 0.85 5.70 0 0 0 0 0.85 0 0 0 0 IHDC - Ascent 1.01 2.57 0 0 0 0 1.01 0 0 0 0 2017/2012 IMGC 0 0 3.05 0 0 0 0 3.05 0 0 0 2017 ISC-Pi Ventures 0 0 3.00 0 0 0 0 0 0 0 0 2015 Idea Cellular II 0 0 12.70 0 0 0 0 12.70 0 0 0 152 Inabensa 2013 14.00 0 0 0 0 0 14.00 0 0 0 0 Bharat 2009 India Agri Fund 0 0 7.43 0 0 0 0 6.38 0 0 0 2013 India 2020 II 0 0 24.90 0 0 0 0 18.13 0 0 0 India Infra 2013/2008 0 0 35.50 0 0 0 0 26.06 0 0 0 Fund 2014 India BEF II 0 0 25.00 0 0 0 0 25.00 0 0 0 2013/2014/2012 Infuse Capital 0 0 2.45 0 0 0 0 1.90 0 0 0 2013 Inox Rajasthan 31.23 9.85 0 0 0 0 31.23 0 0 0 0 2009/2006 JK Paper 0.67 17.33 2.36 0 0 0 0.67 2.36 0 0 0 2014 JPL 0 5.00 0 80.65 0 0 0 0 80.65 0 0 2009/2010/2013/2008 Jain Irrigation 6.38 61.35 11.65 40.00 0 9.83 6.38 11.65 40.00 0 9.83 2014 Janalakshmi 18.57 0 0 0 0 0 18.57 0 0 0 0 2014 Jath Power 10.99 0 0 0 0 0 0 0 0 0 0 2013/2011 Kaizen 0 0 12.35 0 0 0 0 11.64 0 0 0 2013/2012 Kalkitech 0 0 0.13 0 0 0 0 0.13 0 0 0 2005/2010/2013/2014/2017/ Kotak 0 22.00 0 0 0.00 0 0 0 0 0 0 2007/2011/2016/2012 Mahindr... L&T Infra 103.2 103.2 2017 0 0 0 0 0 0 0 0 0 1 1 LENSKART 2016 0 0 25.85 0 0 0 0 25.85 0 0 0 SOLUTIONS LNJ Power 2013 5.29 1.05 0 0 0 0 5.29 0 0 0 0 Vent 2012 Laxmi Organic 6.00 4.00 6.66 0 0 0 6.00 6.66 0 0 0 2006/2008 Lok Fund 0 0 0.00 0 0 0 0 0.00 0 0 0 2011/2012 Lok Capital II 0 0 0.76 0 0 0 0 0.58 0 0 0 2015 Lucid Colloids 15.00 0 0.00 11.61 0 0 15.00 0.00 11.61 0 0 2007 MBPV 17.50 5.00 0 0 0 0 17.50 0 0 0 0 2017 MLDL 0 0 34.71 15.89 0 0 0 0 0 0 0 2010 MSETCL 21.29 16.67 0 0 0 0 21.29 0 0 0 0 Macq-SBI Int F 130.9 2009 0 0 134.21 0 0 0 0 0 0 0 1 2009 Macquarie IM 0 0 0.10 0 0 0 0 0.10 0 0 0 2009/2015 Macquarie DFT 0 0 0.00 0 0 0 0 0.00 0 0 0 2014/2011 MagmaFincorp 0 0 23.39 33.27 0 0 0 23.39 33.27 0 0 Max 2014/2007/2004/2015/2016 0 0 32.52 0 0 0 0 32.52 0 0 0 Healthcare 153 2016 Max India 0 0 5.34 0 0 0 0 5.34 0 0 0 2015 Medha Energy 5.11 0.99 0 0 0 0 5.11 0 0 0 0 2017 Micro Housing 8.22 0 0 0 0 0 4.10 0 0 0 0 2017 Moglix 0 0 3.20 0 0 0 0 3.20 0 0 0 2015 MyUniverse 0 0 9.56 0 0 0 0 9.56 0 0 0 1997/1993/1998/1996 NICCO-UCO 0.00 4.12 0 0 0 0 0.00 0 0 0 0 2013/2012 NSL Power 0 0 0.00 0 0 0 0 0.00 0 0 0 2014/2017 NephroPlus 0 0 7.00 3.09 0 0 0 7.00 3.09 0 0 2015/2016 Nxtgen 0 0 8.59 0 0 0 0 8.59 0 0 0 2013/2007 OCL India 27.21 42.84 0 0 0 0 23.71 0 0 0 0 2009/2007 Ocean Sparkle 0 21.11 9.18 0 0 0 0 9.18 0 0 0 2007 Ocimum 0.87 1.73 0.00 0 0 0 0.87 0.00 0 0 0 2016 Ostro Andhra 30.25 0 0 0 0 0 25.02 0 0 0 0 2016 Ostro AP Wind 31.59 0 0 0 0 0 18.05 0 0 0 0 PNB HFL 127.7 127.3 2015/2016 0 0 0 0 50.00 0 0 0 50.00 1 7 2013/2011/2015 PTC Financial 70.54 12.50 0 0 0 0 70.54 0 0 0 0 2014 Parag Dairy 10.88 3.63 0 0 0 0 10.88 0 0 0 0 Peepul CapFnd 2006 0 0 8.77 0 0 0 0 8.71 0 0 0 II 2010/2007 Petronet 29.18 9.00 0 0 0 60.00 29.18 0 0 0 60.00 2011/2012 Piaggio India 9.91 22.73 0 0 0 0 9.91 0 0 0 0 2016 Plenty Fund I 0 0 23.43 0 0 0 0 11.73 0 0 0 2009/2013 Polycab 0 0 36.72 0 0 0 0 36.72 0 0 0 2016 Portea Medical 0 0 7.00 0 0 0 0 6.97 0 0 0 2004 Powerlinks 8.51 52.71 0 0 0 0 8.51 0 0 0 0 Power Grid 100.0 100.0 2013 0 0 0 0 0 0 0 0 0 0 0 Powergrid 2014 0 0 9.07 0 0 0 0 9.07 0 0 0 Equity 2008 Punj Lloyd 14.12 5.88 0 0 0 0 14.12 0 0 0 0 2008 Punj Upstream 8.33 4.17 2.54 0 0 0 8.33 2.54 0 0 0 2013/2014 RBL 0 0 21.98 0 0 0 0 21.93 0 0 0 2017 RGVN 15.01 0 0 0 0 0 0 0 0 0 0 2013 RK Forgings 14.00 0 0.99 0 0 0 14.00 0.99 0 0 0 2015 Ranji Solar 5.00 1.72 0 0 0 0 5.00 0 0 0 0 Regency 2017 0 0 9.11 0 0 0 0 9.11 0 0 0 Hospital 154 2013/2014 Religare 0 0 33.85 0 0 0 0 33.85 0 0 0 2017 Repco HFL 42.09 0 0 0 0 0 42.09 0 0 0 0 2016 S Chand 0 0 16.79 0 0 0 0 16.79 0 0 0 SAFAL Jain 2011 0 0 1.32 0 0 0 0 1.32 0 0 0 NBFC SAME DEUTZ 2012 5.05 1.76 0 0 0 0 5.05 0 0 0 0 India 2009 SBI - Macq DM 0 0 0.28 0 0 0 0 0.28 0 0 0 2015/2016 SPAH 0 0 33.36 0 0 0 0 7.89 0 0 0 2012 SPSL 6.44 1.63 0 0 0 0 6.44 0 0 0 0 SRF India 2005/2016 40.00 0 0 0 0 0 40.00 0 0 0 0 Limited 2017/2012 SRLL 0 0 45.85 0 0 0 0 45.85 0 0 0 2008 Samara Capital 0 0 7.24 0 0 0 0 7.24 0 0 0 2015 Samhi 0 0 0 22.95 0 0 0 0 22.95 0 0 1996 Sara Fund 0 0 0.00 0 0 0 0 0 0 0 0 2011/2012 Shalivahana 0 0 0.00 0 0 0 0 0 0 0 0 Shriram 153.9 153.5 2017/2016 0 0 0 0 0 0 0 0 0 Transprt 7 0 Simran Wind 2011/2012 13.96 10.96 0 0 0 0 13.96 0 0 0 0 Project Limited 2010/2013/2012 Snowman 4.26 2.67 0 0 0 0 4.26 0 0 0 0 Snowman 2016 0 0 2.56 0 0 0 0 2.56 0 0 0 Equity 2010/2008 Soktas India 0 4.95 1.49 0 0 0 0 1.49 0 0 0 2013/2014/2017/2015/2016/ Solvay USA Inc 1.14 174.93 0 0 0 0 1.14 0 0 0 0 2012 2017 Stellaris 0 0 10.06 0 0 0 0 0 0 0 0 2013/2014/2017/2015/2016 Suryoday 5.42 0 4.05 0 0 0 5.42 4.02 0 0 0 2010/2012 Suvidhaa 0 0 6.50 0 0 0 0 6.50 0 0 0 2015 TVH 0 0 25.00 0 0 0 0 0 0 0 0 2016 Tata Capital FS 42.09 0 0 0 0 0 42.09 0 0 0 0 2016 Tata Capital HF 63.13 0 0 0 0 0 63.13 0 0 0 0 2017/2015/2012 Tata Cleantech 0 0 16.04 0 0 0 0 16.04 0 0 0 2017 Tikona Infinet 0 0 0.02 0 0 0 0 0 0 0 0 2017/2015 Tikona 0 0 0.01 24.39 0 0 0 0.01 24.39 0 0 2014/2015/2012 Ujjivan 0 0 11.23 0 0 0 0 9.50 0 0 0 Ujjivan SFB 9.28 0 0 0 0 0 9.28 0 0 0 0 155 2010/2013/2017/2011/2015/ Utkarsh 0 0 5.23 0 0 0 0 5.23 0 0 0 2012 2014 Uttar Urja 17.02 1.34 0 0 0 0 17.02 0 0 0 0 2013/2014 VBHC 0 0 11.84 0 0 0 0 11.84 0 0 0 2009/2010 VW-India 17.10 54.80 0 0 0 0 17.10 0 0 0 0 Ventureast 2010/2008 0 0 13.05 0 0 0 0 11.90 0 0 0 India 2011 Vishwa Infra 2.00 0 0 0 0 0 2.00 0 0 0 0 2011 Vishwa Utilities 2.00 0 0 0 0 0 2.00 0 0 0 0 2011 Vivimed 8.75 3.75 0 7.50 0 0 8.75 0 7.50 0 0 2017/2012 Vortex 0 0 0.62 0 0 0 0 0.62 0 0 0 2007 WCPM 11.76 28.24 0 0 0 0 11.76 0 0 0 0 2009/2010 WHI India 2.51 0.98 0 0 0 0 2.51 0 0 0 0 1998 WaldenIndia 0 0 0.00 0 0 0 0 0.00 0 0 0 Walden India- 1998/2000 0 0 0.01 0 0 0 0 0.01 0 0 0 Mgt 2013/2014/2017/2015/2016/ YES BANK LTD 146.7 84.3 146.7 12.00 0 75.00 0 0 75.00 84.39 0 2012 4 9 4 2010/2014 Zephyr India II 0 0 7.14 0 0 0 0 7.14 0 0 0 2012 Zephyr India III 0 0 10.56 0 0 0 0 7.18 0 0 0 3,205 1,606. 84.3 2,382. 1,309. 626.2 Total Portfolio 1,293.14 706.49 119.83 84.39 119.83 .45 07 9 65 42 9 Note: a. Includes both equity and loan types. 156 Table 5 (CLR Annex 5): IFC Committed and Disbursed Outstanding Investment Portfolio As of 6/30/2017 (in US$ Millions) LIS/SCS India CPS Strategic Engagement Area Component Business Implementation Status (as Area 1: Area 2: Area 3: Project Name Footprint Line Timeframe of Aug 17) Integration Transformation Inclusion Healthcare Advisory Program CAS FY13–14 Completed X X Bhubaneswar Street lighting Capacity Building Support CAS FY14–15 Completed X X Technical Assistance to Collateral Registry in India F&M FY13–17 Portfolio X India E-waste Advisory Project (Clean E-India) CAS FY13–17 Portfolio X Odisha Inclusive Growth Partnership TAC FY14–17 Portfolio X X Bhubaneswar Affordable Housing CAS FY14–17 Portfolio X X Ranchi Sadar Hospital PPP Project, Jharkhand CAS FY13–16 Completed X X Universal Health Insurance, Meghalaya Project 2 CAS FY13–15 Completed X X Arohan Pensions FIG FY13–16 Completed X Jharkhand Diagnostic Imaging Services PPP CAS FY13–16 Completed X X Jharkhand Diagnostic Pathology Services PPP CAS FY13–16 Completed X X FCI Silos non-VGF PPP Project CAS FY14–15 Completed X Orissa Rooftop Solar PPP Bhubaneshwar & Cuttack CAS FY14–17 Portfolio X X Financial Awareness Model Roll Out F&M FY15–17 Completed X Accion Saija FIG FY13–16 Completed X X SME Capacity Building CAS FY13–16 Completed X Bhubaneswar Municipal Hospital PPP CAS FY13–17 Portfolio X X SEWA Grihrin PVT. LTD. FIG FY13–17 Portfolio X South Asia Regional Corporate Governance Project ESG FY15–20 Portfolio X Bihar Health Patna Jayprabha Hospital PPP CAS FY13–16 Portfolio X X Maanaveeya Agri Value Chain Project - India A2F FIG FY14–16 Completed X Risk Management Scale Up F&M FY14–16 Completed X 157 Odisha Rice Storage PPP CAS FY14–16 Portfolio X X Microinsurance scale through MFIs in India F&M FY14–15 Terminated X Berhampur Solid Waste Management Capacity Building Support CAS FY13–16 Completed X X Green Buildings in India CAS FY15–17 Portfolio X South Asia Program on Inclusive Business Models DID FY14–15 Portfolio X Bihar Transmission Grid CAS FY14–16 Portfolio X X MP Wind Re-powering Project CAS FY15–16 Portfolio X X Promoting Access to Finance to MSMEs in India F&M FY14–20 Portfolio X Suvidhaa Inclusive Business Project FIG FY15–16 Terminated X Government to Person (G2P) Payments Project, Uttar Pradesh F&M FY15–19 Portfolio X X Suryoday FIG FY14–17 Portfolio X Odisha Solar Park PPP CAS FY15–16 Portfolio X X Odisha Streetlighting Program CAS FY15–16 Completed X X FIG India Microfinance AS FIG FY15–18 Portfolio X X TA on MSME Finance FIG FY15–17 Portfolio X X IWAI Strategic Partnership & GR II Jetty Terminal CAS FY15–18 Portfolio X X Financial Awareness model roll out FAM FY14–16 Completed X X Madhya Pradesh Rewa Solar UMPP CAS-PPP FY15–17 Portfolio X X India Ease of Doing Business TAC FY16–18 Portfolio X X 2030 Water Resources Group South Asia Program CAS-Water FY16–18 Portfolio X X Energy and Water Solutions for Firms in South Asia CAS-Energy FY17–21 Portfolio X X IFC-Jain-Coke Project on Sustainable Mangoes MAS FY17–19 Portfolio X X Odisha Affordable Care Hospitals PPP Project CAS-PPP FY16–18 Portfolio X X Tech Emerge - IFC Technology Accelerator Pilot Program CAS-SBS FY16–18 Portfolio X X Clean Ganges CAS-PPP FY17–18 Portfolio X X Eco Smart Cities - Pvt firm level advisory CAS-Energy FY17–20 Portfolio X X Lighting Asia/India II CAS-Energy FY17–20 Portfolio X X SIB Advisory - Bank Transformation FIG FY16–18 Portfolio X X SHG credit reporting FAM FY17–20 Portfolio X X Climate Resilient Agriculture - Olam India MAS FY17–20 Portfolio X X 158 Climate Smart Agriculture - DSCL Sugar MAS FY17–20 Portfolio X X Odisha RTS Replication CAS-PPP FY17–18 Portfolio X X 159 Annex 3. Selected Indicators of Bank Portfolio Performance and Management As of 07/19/2018 FY15 FY16 FY17 FY18 Indicator Portfolio Assessment Number of Projects Under Implementation ᵃ 89.0 93.0 101.0 102.0 Average Implementation Period (years) ᵇ 3.9 4.1 3.9 3.9 Percent of Problem Projects by Number ᵃ˒ ͨ 36.0 22.6 24.8 17.6 Percent of Problem Projects by Amount ᵃ˒ ͨ 31.1 17.3 24.2 20.2 Percent of Projects at Risk by Number ᵃ˒ ͩ 37.1 25.8 26.7 21.6 Percent of Projects at Risk by Amount ᵃ˒ ͩ 33.1 20.8 26.5 24.2 Disbursement Ratio (%) ͤ 16.8 16.7 15.1 16.3 Portfolio Management CPPR during the year (yes/no) Supervision Resources (total US$) Average Supervision (US$/project) Since FY80 Last Five FYs Memorandum Item Proj Eval by IEG by Number 404 25 Proj Eval by IEG by Amt (US$ millions) 63,288.6 6,343.6 % of IEG Projects Rated U or HU by Number 24.3 16.0 % of IEG Projects Rated U or HU by Amt 20.7 9.8 a. As shown in the Annual Report on Portfolio Performance (except for current FY). b. Average age of projects in the Bank's country portfolio. c. Percent of projects rated U or HU on development objectives (DO) and/or implementation progress (IP). d. As defined under the Portfolio Improvement Program. e. Ratio of disbursements during the year to the undisbursed balance of the Bank's portfolio at the beginning of the year: Investment projects only. * All indicators are for projects active in the Portfolio, with the exception of Disbursement Ratio, which includes all active projects as well as projects which exited during the fiscal year. 160 Annex 4. Operations Portfolio (IBRD/IDA and Grants) As of 07/31/2018 Closed Projects 528 IBRD/IDA* Total Disbursed (Active) 9,949.18 of which has been repaid(1) 779.57 Total Disbursed (Closed) 27,833.93 of which has been repaid 27,982.53 Total Disbursed (Active + Closed) 37,783.11 of which has been repaid 28,762.10 Total Undisbursed (Active) 17,077.14 Total Undisbursed (Closed) 88.22 Total Undisbursed (Active + Closed) 17165.36 Difference Between Expected and Active Projects Actual Last PSR Supervision Rating Original Amount in US$ Millions Disbursements ͣ ̷ Devel Implem Fisc Frm Project ID Project Name IBRD IDA Grant Cancel Undisb Orig. Object Progress Year Rev'd P158033 Additional Financing for Financing SMEs # # 2017 0.0 0.0 5.2 0.0 0.0 0.0 0.0 P160018 AF for Grid-Connected Rooftop Solar # S 2017 0.0 0.0 22.9 0.0 14.3 0.1 0.0 P155038 Andhra Pradesh 24X7 Power for All S S 2017 240.0 0.0 0.0 221.7 -4.5 0.0 P154847 Andhra Pradesh Disaster Recovery Project MS MU 2015 0.0 250.0 0.0 215.1 81.4 0.0 P152210 Andhra Pradesh Rural Inclusive Growth Pr MS MS 2015 0.0 75.0 0.0 47.6 40.9 13.8 161 P157198 ASPIRe Project S MS 2017 35.0 0.0 0.0 33.0 7.0 0.0 P155617 Assam Agbusiness & Rural Transformation S S 2018 200.0 0.0 0.0 198.2 1.8 0.0 P150308 Assam Citizen-Centric Service Delivery S MS 2017 39.2 0.0 0.0 38.6 8.5 0.0 P155522 BRRP S S 2017 0.0 235.0 0.0 192.7 -10.6 0.0 P149182 Citizen Access to Responsive Services S MS 2016 0.0 35.0 0.0 24.4 8.1 0.0 P132418 Efficient & Sustainable City Bus Service MS MS 2015 0.0 0.0 9.2 0.0 8.1 0.0 0.0 P155007 Grid-Connected Rooftop Solar Program S S 2016 500.0 0.0 0.0 332.7 168.4 165.2 P156687 Himachal PFM Capacity Building Program S S 2017 36.0 0.0 0.0 28.7 0.0 0.0 P151744 HP Horticulture Development Project MS MS 2016 0.0 135.0 0.0 132.2 16.2 0.0 P071250 IN:AP and Telangana Municipal Devlpmnt MS MU 2010 300.0 0.0 0.0 119.3 119.3 50.6 P096021 IN: AP and Telangana Road Sector Project S MS 2010 320.0 0.0 81.0 64.5 145.5 -11.6 P096018 IN: Assam State Roads Project MS MS 2012 320.0 0.0 0.0 165.6 165.6 0.0 IN: BIHAR KOSI BASIN DEVELOPMENT P127725 PROJECT S MS 2016 0.0 250.0 0.0 206.2 39.2 0.0 P102627 IN: Bihar PRI MS MS 2013 0.0 84.0 0.0 64.7 71.5 59.4 P118826 IN: Bihar Social Protection MS MS 2014 0.0 84.0 0.0 56.2 38.1 5.3 P132665 IN: Bihar Teacher Education ICT MU MU 2015 0.0 250.0 0.0 168.6 66.6 0.0 P133803 IN: Biodiv Consv & Ecosys Serv S MS 2018 0.0 0.0 24.6 0.0 24.6 1.6 1.6 P132623 IN: Climate Change & Livelihoods MS MS 2015 0.0 0.0 8.0 0.0 3.3 0.0 0.0 P089985 IN: Dam Rehabilitation & Improvement MS S 2010 175.0 175.0 70.7 92.3 172.5 81.7 P162849 India Energy Efficiency Scale-up Program # # 2018 220.0 0.0 0.0 220.0 0.0 0.0 P131765 IN: Eastern Ded Freight Corridor II MS MS 2014 1,100.0 0.0 190.0 700.9 715.9 37.1 P114338 IN: Eastern Dedicated Freight Corridor-I MU MU 2011 975.0 0.0 175.0 436.4 611.4 15.5 P100530 IN: Egy Effcy at SMEs S S 2010 0.0 0.0 17.0 0.5 3.8 -1.4 -2.0 P121731 IN: ICDS Syst Strength & Nut Imp Prog S S 2013 200.0 106.0 0.0 209.7 23.1 10.0 P097985 IN: Integrated Coastal Zone Mgmt Project S S 2010 0.0 222.0 0.0 66.9 76.3 55.6 P107649 IN:Karnataka State Highway Improv Pro II S MS 2011 350.0 0.0 0.0 87.9 87.9 63.6 162 P130544 IN: Karn Urb Wtr Modernization U U 2016 100.0 0.0 0.0 98.3 44.5 23.4 P122486 IN: Karn Wtrshed II MS MS 2013 0.0 60.0 0.0 30.9 30.8 28.0 P121774 IN: Kerala RWSSP II MS MS 2012 0.0 155.3 0.0 22.7 39.1 11.8 P130339 IN: Kerala State Transport Project II MU MU 2013 216.0 0.0 0.0 118.8 102.2 0.0 P119039 IN: Low-Income Housing Finance MS MS 2013 0.0 100.0 0.0 4.0 4.0 6.0 P120836 IN: Maharashtra Agric. Competitiveness S S 2011 0.0 100.0 0.0 20.4 25.4 0.0 P126325 IN: Maha RWSSP MS MU 2014 0.0 165.0 0.0 120.3 73.5 0.0 P092217 IN:National Cyclone Risk Mitigation Proj MS MS 2010 0.0 359.0 0.0 87.5 8.5 -11.8 P119085 IN: National Ganga River Basin Project MU MU 2011 801.0 199.0 0.0 789.7 731.9 691.1 P104164 IN: National Rural Livelihoods Project S S 2012 250.0 1,000.0 450.3 250.0 526.0 -368.7 P132739 IN: Natl Watersheds (Neeranchal) U U 2015 0.0 178.5 0.0 178.3 94.8 23.3 P127974 IN: NER Power System Improvement Proj S S 2016 470.0 0.0 0.0 403.2 -3.5 0.0 P102330 IN: North East Rural Livelihoods Project MS MS 2012 0.0 130.0 0.0 39.1 55.1 36.0 P156241 Innovate in India (I3) S S 2017 125.0 0.0 0.0 124.7 45.2 0.0 P128921 IN: Partial Risk Sharing Facility in EE S S 2015 0.0 0.0 18.0 0.0 4.6 4.6 0.0 P124639 IN: PMGSY Rural Roads Project HS S 2011 1,000.0 1,000.0 100.0 462.5 108.4 -1,366.6 P115566 IN: POWERGRID V S S 2010 1,000.0 0.0 0.0 24.6 24.6 -60.2 P150520 IN Punjab Rural Water Sector Imprv Proje MS MS 2015 248.0 0.0 0.0 134.3 52.9 0.0 P124614 IN: Rajasthan ACP MU MS 2012 0.0 109.0 0.0 72.6 63.4 8.1 P130164 IN: Rajasthan Road Sector Modernization MU MU 2014 0.0 160.0 0.0 37.8 43.2 44.7 P102329 IN: Rajasthan Rural Livelihoods Project MS MS 2011 0.0 162.7 39.9 7.7 55.3 15.3 P132173 IN: RWSS for Low Income States MU MU 2014 0.0 500.0 0.0 357.7 282.7 0.0 P143608 IN: Telangana Rural Inclusive Growth Pr U U 2015 0.0 75.0 0.0 72.8 -2.2 0.0 P143382 IN: TN Puducherry DRR MS MS 2013 0.0 236.0 0.0 98.8 106.6 6.2 P143751 IN: TN Roads II S MS 2015 300.0 0.0 0.0 188.8 65.5 0.0 P100304 IN: UP Health Sys Strengthening Project S S 2012 0.0 152.0 0.0 35.7 52.1 0.9 163 P112033 IN: UP Sodic III S S 2009 0.0 197.0 0.0 11.7 22.4 0.0 P122770 IN: UP WSRP II MS MU 2014 0.0 360.0 0.0 201.4 164.1 0.0 P131235 IN: Uttarakahand Decen Watershed Dev II S S 2014 0.0 121.2 0.0 68.2 -5.1 0.0 P158146 IN Uttarakhand WSP PforR S S 2018 120.0 0.0 0.0 119.7 6.5 0.0 P096124 IN: Vishnugad Pipalkoti HEP MS MS 2011 648.0 0.0 0.0 547.0 547.0 0.0 P099047 IN: Vocational Training MU MU 2007 0.0 280.0 0.0 28.9 29.5 21.3 P105311 IN: WB Minor Irrigation Project MS MS 2012 125.0 125.0 95.0 37.4 146.6 7.9 P159576 Jeevika II S S 2016 0.0 290.0 0.0 217.2 -26.1 0.0 P154990 Jhelum and Tawi Flood Recovery Proj MU MU 2015 0.0 250.0 0.0 246.7 92.0 0.0 P158798 JOHAR S S 2017 100.0 0.0 0.0 97.4 8.2 7.7 Madhya Pradesh Urban Development P155303 Project MS MS 2017 116.2 0.0 0.0 108.6 8.1 0.0 P160408 Maharashtra PoCRA S S 2018 420.0 0.0 0.0 418.5 33.4 0.0 P157836 MCLLMP S S 2018 48.0 0.0 0.0 47.9 2.7 0.0 P145778 Mizoram State Roads II- Reg Connectivity MS MS 2014 0.0 107.0 0.0 63.1 41.0 0.0 P150394 MP Higher Education Quality Improvement MS MS 2015 0.0 300.0 0.0 243.5 116.5 16.0 P157054 MPRCP S S 2018 210.0 0.0 0.0 201.0 -5.9 0.0 P151544 MSME Innovation and Inclusion Project MS MS 2015 500.0 0.0 0.0 234.6 56.7 -35.8 P149340 Nagaland Health Project MS MS 2017 0.0 48.0 0.0 45.5 9.2 0.0 P156363 Nai Manzil Project MS MS 2016 0.0 50.0 0.0 37.9 15.4 0.0 P151072 National Agricultural Higher Edu S MS 2018 82.5 0.0 0.0 82.3 20.4 0.9 P130299 National AIDS Control Support Project S MU 2013 0.0 255.0 0.0 111.6 128.1 97.3 P144726 National Cyclone Risk Mitigation Proj-II MS MU 2015 0.0 308.4 0.0 239.7 64.6 0.0 P107648 National Dairy Support Project S S 2012 0.0 352.0 97.2 64.3 196.5 14.4 National Groundwater Management P158119 Improvem # # 2018 450.0 0.0 0.0 450.0 0.0 0.0 P152698 National Hydrology Project S MS 2017 175.0 0.0 0.0 169.8 9.3 0.0 P148775 National Waterway-1 (CANW1) S S 2017 375.0 0.0 0.0 330.7 -12.1 0.0 164 P121185 Natl Highways Inter-Conn MS MS 2014 500.0 0.0 0.0 280.7 239.0 0.0 P148868 Odisha Disaster Recovery Project S MS 2014 0.0 153.0 0.0 68.8 47.0 0.0 P160331 Odisha Higher Education Program S S 2018 119.0 0.0 0.0 106.5 -6.5 0.0 P150158 P150158-IN: EDFC-3 MS MS 2015 650.0 0.0 0.0 600.8 237.4 0.0 P159669 Rajasthan Electric Distribution Reform 2 # # 2019 250.0 0.0 0.0 250.0 0.0 0.0 P114827 Second Gujarat State Highway Project MS MS 2014 175.0 0.0 0.0 107.4 95.7 80.4 P154283 Shared Infrastructure for Solar Parks S S 2017 75.0 0.0 0.0 70.3 7.8 0.0 P158435 Skill India Mission Operation S S 2017 250.0 0.0 0.0 249.4 17.1 0.0 P156869 Strengthening PFM in Rajasthan # # 2018 21.7 0.0 0.0 21.6 0.4 0.0 P156867 STRIVE S MS 2017 0.0 125.0 0.0 125.0 0.0 15.4 P153251 Swachh Bharat Mission Support Operation MS MS 2016 1,500.0 0.0 0.0 1,347.6 0.0 0.0 P157702 Tamil Nadu Rural Transformation Project S S 2018 100.0 0.0 0.0 99.7 0.0 0.0 TECHNOLOGY CENTER SYSTEMS P145502 PROJECT S MS 2014 200.0 0.0 0.0 169.0 143.4 63.8 P150576 Tejaswini-IN: Adolescent Girls Jharkhand MS MS 2016 0.0 63.0 0.0 62.7 9.7 7.7 P154523 TEQIP III S MS 2016 0.0 201.5 0.0 186.3 59.8 3.4 P158522 TN IAMP S S 2018 318.0 0.0 0.0 308.3 -7.4 0.0 TN Sustainable Urban Development P150395 Program S S 2015 400.0 0.0 0.0 267.1 -21.2 0.0 P146936 UP Pro-Poor Tourism Development Project S S 2018 40.0 0.0 0.0 38.2 3.4 0.0 P146653 Uttarakhand Disasater Recovery Project S S 2014 0.0 250.0 0.0 39.9 59.1 0.0 P148531 Uttarakhand Health Systems Devp Proj MS MS 2017 0.0 100.0 0.0 100.0 9.2 0.0 Uttarakhand Workforce Development P154525 Projec # # 2018 74.0 0.0 0.0 74.0 1.8 0.0 P159427 West Bengal ISGPP-II S S 2017 210.0 0.0 0.0 115.4 -34.3 -34.3 Overall Result 17,772.6 10,678.6 105.0 1,299.6 17,077.1 7,815.4 -100.7 * Disbursement data is updated at the end of the first week of the month. a. Intended disbursements to date minus actual disbursements to date as projected at appraisal. 165 Annex 5. Statement of IFC’s Committed and Disbursed Outstanding Investment Portfolio As of June 30, 2018 (in US$ million) Committed Disbursed Outstanding Commitment Company Loan Equity Quasi GT/RM Participant Loan Equity Quasi GT/RM Participant Fiscal Year Equity* Equity* 1998/2000 Walden India-Mgt 0 0.01 0 0 0 0 0.01 0 0 0 2001/2004 BILT 0 0.63 0 0 0 0 0.63 0 0 0 2004 Powerlinks 4.01 0 0 0 0 4.01 0 0 0 0 2005 APIDC Biotech 0 2.96 0 0 0 0 2.96 0 0 0 2005 Bharat Biotech 0 0 3.30 0 0 0 0 3.30 0 0 2005/2009/2006/2016 DCM SHRIRAM 20.00 0 0 0 0 20.00 0 0 0 0 LIMITED 2005/2009/2008 ADPCL 21.69 11.52 0 0 0 21.69 11.52 0 0 0 2005/2010/2011/2003 ATL 2.50 0 0 0 0 2.50 0 0 0 0 2005/2016 SRF India Limited 37.33 0 0 0 0 37.33 0 0 0 0 2006 IHDC 0.27 0 0 0 0 0.27 0 0 0 0 2006 Peepul CapFnd II 0 8.77 0 0 0 0 8.71 0 0 0 2007 Electrotherm 13.00 0 0 0 0 13.00 0 0 0 0 2007 MBPV 17.50 0 0 0 0 17.50 0 0 0 0 2007 Ocimum 0.57 0 0 0 0 0.57 0 0 0 0 2007 WCPM 7.06 0 0 0 0 7.06 0 0 0 0 2007/2008 GSPL 16.42 0 0 0 0 16.42 0 0 0 0 2008 Aloe 2 0 11.03 0 0 0 0 11.03 0 0 0 2008 Ambit Pragma I 0 8.73 0 0 0 0 8.72 0 0 0 2008 Avigo Fund II 0 8.32 0 0 0 0 7.48 0 0 0 2008 CGPL Ultra Mega 226.56 0 0 0 0 226.56 0 0 0 0 166 2008 Punj Lloyd 14.12 0 0 0 0 14.12 0 0 0 0 2008 Punj Upstream 8.33 2.54 0 0 0 8.33 2.54 0 0 0 2008 Samara Capital 0 5.42 0 0 0 0 5.42 0 0 0 2008/2012 Angel Global 0 18.41 0 0 0 0 18.41 0 0 0 2009 Avigo Fund III 0 13.92 0 0 0 0 13.24 0 0 0 2009 India Agri Fund 0 3.46 0 0 0 0 2.51 0 0 0 2009 Macq-SBI Int F 0 132.66 0 0 0 0 132.09 0 0 0 2009 Macquarie IM 0 0.10 0 0 0 0 0.10 0 0 0 2009 SBI - Macq DM 0 0.28 0 0 0 0 0.28 0 0 0 2009/2006/2012 AHEL 17.15 12.64 0 0 0 17.15 12.64 0 0 0 2009/2007 Aavishkaar MFI I 0 0.31 0 0 0 0 0 0 0 0 2009/2007 Ocean Sparkle 0 9.18 0 0 0 0 9.18 0 0 0 2009/2010 VW-India 5.82 0 0 0 0 5.82 0 0 0 0 2009/2010 WHI India 1.94 0 0 0 0 1.94 0 0 0 0 2009/2013 HIKAL 4.00 2.73 0 0 0 4.00 2.73 0 0 0 2009/2013 Polycab 0 36.72 0 0 0 0 36.72 0 0 0 2009/2013/2010/2018/2 Jain Irrigation 42.03 0 0 0 4.05 42.03 0 0 0 4.05 008 2009/2014 APPL 0 7.18 0 0 0 0 4.15 0 0 0 2009/2017/2007/2012 Granules 56.23 0 0 0 0 56.23 0 0 0 0 2009/2018/2006 JK Paper 48.89 2.36 0 0 0 0 2.36 0 0 0 2010/2006/2017/2014/2 Federal Bank 100.00 0 0 0 0 100.00 0 0 0 0 011/2016/2008/2012 2010/2007 Petronet 23.50 0 0 0 36.00 23.50 0 0 0 36.00 2010/2008 Ventureast India 0 11.97 0 0 0 0 11.00 0 0 0 2010/2013 AavishkaarMFI II 0 2.25 0 0 0 0 2.07 0 0 0 2010/2013/2012 Bhilwara Energy 0 7.47 0 0 0 0 7.47 0 0 0 2010/2013/2012 Snowman 2.92 0 0 0 0 2.92 0 0 0 0 167 2010/2013/2014/2017/2 AU Financiers 49.25 11.64 0 0 0 48.89 11.64 0 0 0 012 2010/2013/2017/2011/2 Utkarsh 0 2.07 0 0 0 0 2.07 0 0 0 015/2012 Microfinance Pvt Ltd 2010/2014 Zephyr India II 0 7.14 0 0 0 0 7.14 0 0 0 2010/2015/2012 Applied Solar 0 7.29 0 0 0 0 6.98 0 0 0 2010/2017/2007 FINO PayTech 0 3.22 3.20 0 0 0 3.22 3.20 0 0 Ltd 2010/2018/2011/2015 Chola 100.00 0 45.97 0 0 0 0 45.97 0 0 2010/2018/2012 Craftsman 30.00 10.46 0 0 0 0 10.46 0 0 0 2010/2018/2017 Aadhar 0 23.54 0 0 0 0 23.53 0 0 0 2011 Aavishkaar 0 15.00 0 0 0 0 14.69 0 0 0 MSME 2011 Attero Recycling 0 0 5.00 0 0 0 0 5.00 0 0 2011 SAFAL Jain 0 1.32 0 0 0 0 1.32 0 0 0 NBFC 2011 Vishwa Infra 2.00 0 0 0 0 2.00 0 0 0 0 2011 Vishwa Utilities 2.00 0 0 0 0 2.00 0 0 0 0 2011 Vivimed 4.98 0 0 0 0 4.98 0 0 0 0 2011/2012 Sarva Capital 0 0.14 0 0 0 0 0 0 0 0 2012 Ambit Pragma II 0 15.41 0 0 0 0 9.45 0 0 0 2012 Banyan Tree II 0 19.28 0 0 0 0 19.28 0 0 0 2012 Bhilwara Wind 6.29 0 0 0 0 6.29 0 0 0 0 2012 Dunar Foods 0 13.90 0 0 0 0 12.02 0 0 0 2012 Forum Synergies 0 4.50 0 0 0 0 4.16 0 0 0 2012 Laxmi Organic 4.00 6.66 0 0 0 4.00 6.66 0 0 0 2012 SAME DEUTZ 4.45 0 0 0 0 4.45 0 0 0 0 India 2012 SPSL 5.69 0 0 0 0 5.69 0 0 0 0 2012 Zephyr India III 0 7.52 0 0 0 0 4.84 0 0 0 168 2013 Azure Sun 1.56 0 0 0 0 1.56 0 0 0 0 2013 Ecolibrium 0 0.75 0 0 0 0 0.75 0 0 0 2013 Green Infra 4.78 0 0 0 0 4.78 0 0 0 0 20MW 2013 Green Infra 5MW 1.24 0 0 0 0 1.24 0 0 0 0 2013 India 2020 II 0 24.90 0 0 0 0 19.24 0 0 0 2013 LNJ Power Vent 4.64 0 0 0 0 4.64 0 0 0 0 2013 Power Grid 90.00 0 0 0 0 90.00 0 0 0 0 2013 RK Forgings 10.50 0.73 0 0 0 10.50 0.73 0 0 0 2013/2003/2004 Dewan 46.67 0 0 0 0 46.67 0 0 0 0 2013/2007 OCL India 19.43 0 0 0 0 19.43 0 0 0 0 2013/2008 India Infra Fund 0 15.66 0 0 0 0 14.80 0 0 0 2013/2011 Kaizen 0 8.64 0 0 0 0 8.28 0 0 0 2013/2011/2015 PTC Financial 62.41 0 0 0 0 62.41 0 0 0 0 2013/2012 Kalkitech 0 0.13 0 0 0 0 0.13 0 0 0 2013/2014 RBL 0 15.35 0 0 0 0 15.35 0 0 0 2013/2014 Religare 0 7.33 0 0 0 0 7.33 0 0 0 2013/2014 VBHC 0 3.60 0 0 0 0 3.60 0 0 0 2013/2014/2012 Infuse Capital 0 2.43 0 0 0 0 2.10 0 0 0 2013/2014/2017/2015/2 Suryoday 5.11 4.02 0 0 0 5.11 4.02 0 0 0 016 2013/2018/2014/2017/2 YES BANK LTD 131.97 0 75.00 26.00 0 131.97 0 75.00 26.00 0 015/2016/2012 2013/2018/2017/2016 Avanse 0 18.48 0 0 0 0 16.53 0 0 0 2014 DJ Energy P Ltd 19.24 0 0 0 0 19.24 0 0 0 0 2014 Flexituff 0 0.94 9.00 0 0 0 0.94 9.00 0 0 2014 Gaja II 0 24.95 0 0 0 0 10.20 0 0 0 2014 India BEF II 0 25.00 0 0 0 0 25.00 0 0 0 2014 Janalakshmi 17.51 0 0 0 0 17.51 0 0 0 0 2014 JPL 0 0 88.83 0 0 0 0 88.83 0 0 169 2014 Parag Dairy 8.46 0 0 0 0 8.46 0 0 0 0 2014 Powergrid Equity 0 5.78 0 0 0 0 5.78 0 0 0 2014 Uttar Urja 15.17 0 0 0 0 15.17 0 0 0 0 2014/2011 MagmaFincorp 0 23.39 31.38 0 0 0 23.39 31.38 0 0 2014/2011/2015 Bandhan 0 69.69 0 0 0 0 69.69 0 0 0 2014/2015/2012 Axis Bank 87.56 0 0 0 0 87.56 0 0 0 0 2014/2015/2012 Equitas 0 16.71 0 0 0 0 16.71 0 0 0 2014/2015/2012 Ujjivan 0 9.50 0 0 0 0 9.50 0 0 0 2014/2017 NephroPlus 0 7.00 3.09 0 0 0 7.00 3.09 0 0 2015 Acme Rajdhani 4.46 0 0 0 0 4.46 0 0 0 0 2015 Bandhan Bank 0 13.33 23.35 0 0 0 13.33 23.35 0 0 2015 Eden Mumbai 4.48 0 0 0 0 4.48 0 0 0 0 2015 EDEN Renewable 4.39 0 0 0 0 4.39 0 0 0 0 Ranji Private Lim 2015 EDEN Solar 4.43 0 0 0 0 4.43 0 0 0 0 Energy Gurgaon 2015 Equitas Microfin 8.76 0 0 0 0 8.76 0 0 0 0 2015 Everstone III 0 50.00 0 0 0 0 24.00 0 0 0 2015 Eye-Q Vision 0 5.49 0 0 0 0 5.49 0 0 0 2015 Green Infra Wind 37.78 0 0 0 0 37.78 0 0 0 0 2015 Idea Cellular II 0 1.38 0 0 0 0 1.38 0 0 0 2015 Lucid Colloids 12.69 0 10.95 0 0 12.69 0 10.95 0 0 2015 Medha Energy 4.55 0 0 0 0 4.55 0 0 0 0 2015 MyUniverse 0 9.56 0 0 0 0 9.56 0 0 0 2015 Samhi 0 0 23.48 0 0 0 0 23.48 0 0 2015 TVH 0 25.00 0 0 0 0 0 0 0 0 2015/2016 Nxtgen 0 8.59 0 0 0 0 8.59 0 0 0 2015/2016 SPAH 0 31.73 0 0 0 0 7.90 0 0 0 170 2016 Aptus Value 14.55 0 0 0 0 14.55 0 0 0 0 Housing Finance 2016 Aspire Home 14.55 0 0 0 0 14.55 0 0 0 0 2016 BCL 0 0 21.89 0 0 0 0 21.89 0 0 2016 CWCNSL 33.87 24.66 0 0 0 33.87 24.66 0 0 0 2016 DARP Encore 0 5.42 0 0 0 0 5.42 0 0 0 ARC 2016 GLENMARK 0 0 75.00 0 0 0 0 75.00 0 0 PHARMAC 2016 HCG 0 11.75 0 0 0 0 11.75 0 0 0 2016 IDFC Bank 50.61 2.61 0 0 0 50.61 2.61 0 0 0 Limited 2016 LENSKART 0 25.85 0 0 0 0 25.85 0 0 0 SOLUTIONS 2016 Max India 0 5.34 0 0 0 0 5.34 0 0 0 2016 Ostro Andhra 27.90 0 0 0 0 27.90 0 0 0 0 2016 Ostro AP Wind 28.99 0 0 0 0 28.99 0 0 0 0 2016 Plenty Fund I 0 23.43 0 0 0 0 18.64 0 0 0 2016 S Chand 0 14.23 0 0 0 0 14.23 0 0 0 2016 Snowman Equity 0 2.51 0 0 0 0 2.51 0 0 0 2016 Tata Capital FS 39.69 0 0 0 0 39.69 0 0 0 0 2016 Tata Capital HF 59.54 0 0 0 0 59.54 0 0 0 0 2017 Aavas 18.97 0 0 0 0 18.97 0 0 0 0 2017 Apollo AHLL 0 31.23 0 0 0 0 31.23 0 0 0 2017 BajajFin 145.94 0 0 0 0 145.94 0 0 0 0 2017 ESIP Blackbuck 0 9.93 0 0 0 0 9.93 0 0 0 2017 ESIP Power2SME 0 9.49 0 0 0 0 9.49 0 0 0 2017 ETC Agro 29.33 0 0 0 0 29.33 0 0 0 0 Processing 2017 FRV Solar India 26.90 0 0 0 0 9.75 0 0 0 0 2017 Hero Renewable 0 25.00 0 0 0 0 25.00 0 0 0 171 2017 IDG Ventures III 0 20.00 0 0 0 0 10.78 0 0 0 2017 ISC-Pi Ventures 0 3.00 0 0 0 0 0 0 0 0 2017 L&T Infra 97.34 0 0 0 0 97.34 0 0 0 0 2017 Micro Housing 7.75 0 0 0 0 7.75 0 0 0 0 2017 MLDL 0 4.75 43.02 0 0 0 0.99 8.38 0 0 2017 Regency Hospital 0 9.11 0 0 0 0 9.11 0 0 0 2017 Repco HFL 39.69 0 0 0 0 39.69 0 0 0 0 2017 Stellaris I 0 9.60 0 0 0 0 2.11 0 0 0 2017/2012 IMGC 0 3.05 0 0 0 0 3.05 0 0 0 2017/2012 SRLL 0 39.17 0 0 0 0 39.17 0 0 0 2017/2012 Vortex 0 0.62 0 0 0 0 0.62 0 0 0 2017/2015 Cube Highways 69.26 10.00 90.00 0 0 0 3.64 32.78 0 0 2017/2015/2016 DARP Altico Ind P 0 0 67.57 0 0 0 0 67.57 0 0 Ltd 2017/2015/2016 Fullerton India 138.64 0 0 0 0 138.64 0 0 0 0 2017/2016 Azure Global 0 44.71 0 0 0 0 44.71 0 0 0 2017/2016 Capital First 100.70 0 0 0 0 100.70 0 0 0 0 2017/2016 Shriram Transprt 145.21 0 0 0 0 144.77 0 0 0 0 2018 Acme Jaipur Solar 45.53 0 0 0 0 0 0 0 0 0 2018 Aditya Birla 145.94 0 0 0 0 0 0 0 0 0 Finance 2018 Arinsun Clean 44.00 0 0 0 0 0 0 0 0 0 Energy 2018 ASHIANA 0 21.89 0 0 0 0 0 0 0 0 HOUSING 2018 Azure RG3 10.00 0 0 0 0 0 0 0 0 0 2018 Azure RG 35.00 0 0 0 0 0 0 0 0 0 2018 Biological E 60.00 0 0 0 0 0 0 0 0 0 2018 Bizongo 0 4.85 0 0 0 0 4.85 0 0 0 172 2018 Camlin Fine 15.00 0 15.00 0 0 0 0 0 0 0 Sciences 2018 Clean Max 0 0.10 14.90 0 0 0 0 6.77 0 0 2018 Coverfox 0 7.00 0 0 0 0 7.00 0 0 0 2018 DARP SPV 0 100.00 0 0 0 0 0 0 0 0 IndiaRF 2018 Faering III 0 15.10 0 0 0 0 1.47 0 0 0 2018 FIHFC 9.92 0 0 0 0 0 0 0 0 0 2018 IndoSpace Fund 3 0 25.00 0 0 0 0 0 0 0 0 2018 L&T Housing 71.22 0 0 0 0 0 0 0 0 0 2018 Lighthouse III 0 20.00 0 0 0 0 2.43 0 0 0 2018 Lithium 0 7.59 0 0 0 0 0 0 0 0 2018 Mahindra Finance 93.84 0 0 0 0 0 0 0 0 0 2018 Mahindra 29.19 0 0 0 0 0 0 0 0 0 Renewables 2018 MRHFL 23.35 0 0 0 0 0 0 0 0 0 2018 OSE India 71.14 0 0 0 0 0 0 0 0 0 2018 Suminter 0 9.88 0 0 0 0 0 0 0 0 2018/1993/2017/1987/1 HDFC 189.72 0 0 0 0 189.72 0 0 0 0 978/1990/2003/2004/19 91 2018/2014/2007/2004/2 Max Healthcare 70.62 0 0 0 0 0 0 0 0 0 015/2016 2018/2015/2016 PNB HFL 269.25 0 0 0 50.00 122.97 0 0 0 50.00 2018/2016 Portea Medical 0 7.06 0 0 0 0 7.03 0 0 0 2018/2017 Byjus 0 8.55 0 0 0 0 8.55 0 0 0 2018/2017 Future Consumer 0 42.54 0 0 0 0 42.54 0 0 0 India 2018/2017 Grameen Koota 33.57 0 0 0 0 19.70 0 0 0 0 2018/2017 Tikona Infinet 0 0.03 8.68 0 0 0 0.01 0 0 0 2018/2017/2015/2012 Tata Cleantech 37.94 16.04 0 0 0 0 16.04 0 0 0 2018/2017/2016 BigBasket 0 31.35 0 0 0 0 31.05 0 0 0 173 AST Telecom 1.02 0 0 0 0 1.02 0 0 0 0 CDC Pragati Sale 0 0 3.93 0 0 0 0 3.93 0 0 IHDC - Ascent 0.65 0 0 0 0 0.65 0 0 0 0 NESFB 14.16 0 0 0 0 14.16 0 0 0 0 Ujjivan SFB 8.76 0 0 0 0 8.76 0 0 0 0 Vivimed - FCCB 0 0 7.50 0 0 0 0 7.50 0 0 Grand Total: 3,877.51 1,553.16 670.03 26.00 90.05 2,688.60 1,204.56 546.35 26.00 90.05 174 Annex 6. IFC India Advisory Services – Active Portfolio Projects As of June 30, 2018 Project Name FY of Approval Expected End Date Bengaluru Public Streetlighting PPP FY 18 FY 19 MP Solar Replication PPP FY 18 FY 19 TA on Insolvency in India FY 18 FY 21 IWAI Terminal Development Replication PPP FY 18 FY 19 BLF Alliance with Bayer India FY 18 FY 20 Energy and Water Solutions for Firms in South Asia FY 17 FY 22 IFC-Jain-Coke Project on Sustainable Mangoes FY 17 FY 20 Lighting Asia/India II FY 17 FY 20 SHG Credit Reporting FY 17 FY 19 Climate Resilient Agriculture - Olam India FY 17 FY 20 Climate Smart Agriculture - DSCL Sugar FY 17 FY 20 Odisha RTS Replication PPP FY 17 FY 19 India Ease of Doing Business FY 16 FY 19 Odisha Affordable Care Hospitals Project PPP FY 16 FY 19 Infrastructure Advisory to Indian Cities FY 16 FY 20 SIB Advisory - Bank Transformation FY 16 FY 19 Green Buildings in India FY 15 FY 19 FIG India Microfinance AS FY 15 FY 20 TA on MSME Finance FY 15 FY 20 South Asia Regional Corporate Governance Project FY 14 FY 19 Odisha Rice Storage PPP FY 14 FY 19 Promoting Access to Finance to MSMEs In India FY 14 FY 20 India-Odisha Solar Park PPP FY 14 FY 19 India E-waste Advisory Project FY 13 FY 19 Bhubaneswar Municipal Hospital PPP FY 13 FY 19 Sewa Grihrin Pvt. Ltd. FY 13 FY 19 G2P Payment FY 12 FY 19 Responsible Finance Sectoral FY 12 FY 19 Capacity Building of FWWBI partners FY 10 FY 19 175 Annex 7. Summary of Country Opinion Survey and Stakeholder Consultations Introduction In August 2017, the World Bank Group (WBG) launched the process of engagement with wide range of stakeholders in India with the aim of developing the Country Partnership Framework (CPF) for India. The CPF lays down the framework for the WBG’s support for India’s development agenda during the period FY18-22. The WBG’s engagement with stakeholders began in August 2017, with the development of the Systematic Country Diagnostic (SCD) for India. The SCD is the outcome of the WBG’s analysis of the main challe nges facing India today, and presents the group’s understanding of the key issues that confront the country as it proceeds along the path to development. Once the analysis was complete, the SCD and outline of the CPF was presented to a broad range of stakeholders across various locations in the country. The series of consultations provided the WBG an invaluable platform to listen to the insights of a wide cross-section of experts on the challenges facing India today. These included government officials, policymakers, private sector representatives, think tanks, NGOs, and development agencies working in India. Organized jointly by the World Bank and IFC, these consultations were carried out through diverse means of engagement, including a detailed survey, face-to-face sessions with stakeholders at various locations, as well as online consultations via the WBG’s social media platforms. Draft SCD and outline of CPF were also placed on the Bank’s website for further feedback. The insights and perspectives gathered from these stakeholders during this consultations process has provided critical inputs into the development of the new CPF. Client Survey The client survey, conducted in accordance with Bank-wide methodology, reached out to a range of government officials, project counterparts, NGOs, think tanks, research institutes, and the media, among others. These stakeholders were drawn from six states, including Andhra Pradesh, Assam, Delhi, Jharkhand, Maharashtra and Odisha. Questions were placed through both online and physical questionnaires. According to the survey findings, stakeholders in India regard education, jobs, agriculture, and poverty reduction as the top development priorities for the country, and felt that agriculture and rural development, education and jobs are key to poverty reduction in the country. Respondents believed that the greatest value of the Bank’s engagement in India lay in the technical assistance provided for strengthening systems and institutions for service delivery, followed by its financial resources and policy advice. 176 177 178 Consultations with the Government of India, state governments and other stakeholder groups The consultations with the Government of India built upon the routine interactions of various WBG sector teams with their counterparts in the line ministries. A more structured dialogue with various line departments and ministries of the Government of India as well as with various state governments was led by the Department of Economic Affairs (DEA), Ministry of Finance, the World Bank’s nodal counterpart in India. These discussions were supplemented by presentation and discussion with the NITI Aayog, the Government of India’s policy think-tank. 179 India Country Engagement Dialogue 2017-18 August 2017 – Private Sector, Mumbai August 2017 – National-level think-tanks, Delhi September 2017 – Multi-stakeholders, Bhubaneshwar January 2018 – Government of India, and State Governments, Delhi January 2018 – National-level CSOs and NGOs, Delhi February 2018 – Governments of the North-Eastern states, Shillong February 2018 – Multi-stakeholders, Guwahati February 2018 – Private Sector from the North East, Guwahati February 2018 – NITI Aayog, Delhi March 2018 – Donors, Delhi March 2018 – Governments of the Southern States, Hyderabad March 2018 – Private Sector, Mumbai May 2018 – Government of India and State Governments, Delhi I. Government The structured dialogue on the CPF with the Government of India and the state governments began in January 2018, with a broad-based consultation in New Delhi. Participants from various Central ministries, and from several state governments participated in a discussion led by the DEA. In February 2018, the WBG and DEA teams travelled to Shillong to consult specifically with the state governments of the north- east region, which is faced with both unique challenges and opportunities. In March 2018, a similar consultation was organized in Hyderabad to discuss the development priorities of the southern states. Bilateral conversations were also held with several state governments where WBG has extensive engagement developed over the years, including those of Odisha, Assam, and Maharashtra. Following these consultations, the WBG shared the draft CPF with the DEA, Ministry of Finance. The Ministry circulated the draft among line ministries and state governments, from whom comments were received. At another meeting in May 2018, organized along with DEA, the WBG heard the comments of these stakeholders. Feedback received from all these consultations is summarized below. Government of India, Delhi At the Delhi session in January 2018, participants, including representatives from some states and central ministries, were in broad agreement with the priorities laid out in the SCD and identified as priorities for the CPF. They especially appreciated concepts such as leveraging the Bank’s financial resources to support bigger government programs; ‘Lighthouse India’ to promote knowledge exchange both within India and globally; as well as the focus on deepening the WBG’s engagement at the state level and on strengthening the public sector’s capacity to deliver basic services more efficiently . Participants from a range of line departments and from various states expressed their demand for WBG resources, especially for its knowledge expertise. Participants highlighted the needs of India’s rural sector and underlined the importance of improving rural incomes. They pointed out that areas such as agricultural productivity, agri-business, water and soil productivity, especially in the face of climate change, could benefit from sustained WBG support. They said that while a series of livelihood projects had resulted in appreciable improvement in rural standards of living, an ecosystem was now needed to help farmers gain better access to markets. In this context, 180 the idea of raising Livelihood Bonds was also discussed. Participants also drew attention to the critical issue of job creation, and suggested that the WBG bring in international experience for the development of a suitable policy framework to make job creation more inclusive. In addition, given India’s unprecedented pace of urbanization, they emphasized the importance of creating affordable housing. In the face of growing concerns about air pollution, and given the recent launch of the National Clean Air Program, participants said that international knowledge could be leveraged for ‘air-shed’ approach. Governments from the North-Eastern States Given the specific challenges of the north-east region, a separate consultation was held in Shillong. ‘Connectivity’ emerged as a recurring theme at this discussion. Participants emphasized that while the region was rich in natural resources and human capital, it needs to be better integrated with the rest of the country through improved physical, digital and financial connectivity and urged the WBG’s engagement in this regard. Participants highlighted that the region could benefit significantly from potential opportunities emerging from the government’s ‘Act East’ agenda. But to do so, the region would need to improve its business climate and transform into an attractive investment destination that could help generate better jobs and higher incomes for its people. They stressed the need for a significant skilling effort to help youth avail of the new job opportunities that were likely to arise from the country’s eastward focus. Representatives from the north-eastern states also sought WBG’s knowledge and expertise on the inclusive and sustainable management of natural resources, particularly regarding water use and conservation. They requested WBG assistance to develop management strategies for the Brahmaputra river. In addition, government representatives asked for help in building state capacity at every level so that they were better equipped to provide good governance and implement the government’s programs and initiatives. Governments from the Southern States The discussion with government counterparts from southern states presented the distinct issues and challenges facing these higher-income states. Having progressed further along the development path, and now faced with more complex second generation reforms their main demand was for the WBG to deliver knowledge and development experience from around the world. Participants requested that the WBG devote its analytical resources to help them understand, for instance, why PPPs remained underutilized in India. The different demographic reality of these states was also reflected in the request from several states for support to launch better geriatric care, a hitherto neglected area in the country. Several states also sought help to broaden affordable housing for citizens, and skill-development programs for improving the ‘employability’ of youth. II. Civil Society – Think Tanks, Academics, NGOs The broad rubric of civil society is privy to unique insights about a wide range of development issues. While think tanks and academics bring in the analytical rigor, NGOs and CSOs, with their strong grassroots connections, bring in valuable understanding about the challenges of implementation. At sessions in Delhi, Guwahati and Bhubaneshwar, participants responded very positively to the SCD narrative, and validated its main messages and priorities. Insightful comments were received about the WBG’s future course of action in India under the new CPF. 181 Think Tanks and Academia in Delhi As early as August 2017, one of the WBG’s first discussions was held with prominent think tanks in Delhi. A large part of the rich discussion was devoted to strengthening state capability. Even after the 73rd and 74th Amendments, they said, the downward flow of funds and functions remained below optimum levels, as there was “an unwillingness to cede control” to local governments. Several participants discussed this issue in the context of urban governance, pointing to low empowerment of urban local bodies, in general, and of city Mayors in particular. It was said that the WBG should delve deeper into accountability issues in the governance/administrative system, and make a bigger push for transparency. Participants agreed with the WBG’s proposed approach of programmatic partnerships with states. However, they cautioned that a deeper understanding of the political economy of states was needed for this new approach to succeed. Since some states have low planning and implementation capabilities, they said, the WBG would need to focus on building the capacity of these states to improve governance, performance, and the last mile delivery of services. Various delivery models were analyzed, with several participants calling for more emphasis on PPPs, which they said remained an important model for meeting India’s investment needs. The concept, which had mixed experience in the past, also included many successes and needed to be brought back on track with lessons learnt from experience. Participants also focused on the key issue of job creation. They pointed out that the reasons for the fall in women’s employment needs to be further investigated. The employment potential of the non-farm sector in rural India also deserves a closer look, they said. To promote the efficient use of land and water in agriculture, participants said that farmers need to be provided with the right incentives and technology, and find solutions for weaning away from reliance on almost free electricity, which has led to the reckless exploitation of groundwater. Multi-stakeholder consultation at Guwahati A large part of the interactive discussions with stakeholders in Assam focused on water issues and the effective management of the Brahmaputra river. Given the Brahmaputra’s recurrent floods and the soil erosion along its banks, several participants called for deepening the knowledge base around the river. Without this, policy making was bound to remain unproductive, they said. They emphasized the importance of engaging with local communities living along the river and to bring them into the discourse. Any plan for river management and development, they said, should include an appropriate institutional setup, technical knowhow, public participation, and global experience of good practices. NGOs from the other parts of the Northeast Region emphasized the need to focus on the management and development of the region’s other natural resources, including mining. Discussion also centered 182 around the role of the public-sector vis-a-vis the private sector, and how the public sector could be strengthened to provide better service delivery and greater accountability to citizens. Multi-stakeholder consultation at Bhubaneshwar In Odisha, participants identified two overarching challenges that impacted most sectors – the absence of an integrated planning system and inadequate governance structures. Several people mentioned that the most vital cross-cutting link in the whole narrative was the lack of an integrated planning regime which was vital for comprehensive and effective development. Participants generally agreed that without factoring in ‘governance’, no policy or initiative could yield the expected outcome. They said that public service delivery had been poorly managed in the country. They also said that there should be more formal mechanisms to promote interaction between government functionaries and citizens. NGOs in Delhi The recurrent theme during this discussion session centered on ‘inclusion’ in all its aspects, including across social groups, classes, gender, and the differently-abled. Another cross cutting theme that found repeated mention was the issue of governance. The importance of strengthening local governance and accountability was emphasized. Participants also appreciated the WBG’s focus on the criticality of natural resources for fulfilling the country’s development agenda. Participants emphasized the issue of job creation, and urged the WBG to delve deeper into sectors that held the most potential for creating jobs, as this was essential for making the skilling effort more meaningful. In the urban sphere, they suggested that cities be viewed through a place- based lens rather than through a sector-based approach. Smart cities could be made more inclusive by placing greater focus on the needs of the poor and vulnerable, including the homeless, and by providing affordable housing. They also drew attention to the fact that the WBG’s work on inclusion needs to place greater emphasis on the differently abled by enhancing their access to education, skills, and jobs. Several participants appreciated the Bank’s cross cutting focus on closing gender gaps. Even so, they said, the Bank’s analysis missed mentioning the special constraints faced by women farmers who often lack access to credit, markets and technology. A participant noted that gender should not be seen as a binary; instead, transgenders etc. should also be covered. 183 While appreciating the WBG’s emphasis on India’s need to forge a resource-efficient growth, participants pointed out it required a wider focus than was presented, including for instance, the management of waste. A participant noted that India lacked the capacity to measure and impute values to natural resources, including water, and said that the WBG could help develop this capacity. A speaker said that the Bank’s SCD did not adequately analyze the agrarian crisis. Many participants said that while they agreed with the WBG’s approach of leveraging its limited finances, this would only be effective if the group worked together in partnership with various stakeholders, including civil society and the private sector. While expressing appreciation for the Bank’s support of SHGs in the past, a participant commented that World Bank engagements with state structures in the SHG sector had driven away NGOs and CSOs, thus ‘robbing the system of its vibrancy’. Endorsing the Bank’s move towards adopting a more state-focused approach, participants suggested that the WBG engage not only with states who have expressed keenness to undertake deeper reforms but also with those whose needs were far greater, such as Uttar Pradesh, Bihar and Chhattisgarh. While a speaker recommended that the Bank should focus more on ‘listening’, others suggested that the WBG guide the private sector on the latest rules of responsible business by bringing in best practices from around the world. Throughout the consultations, participants emphasized the need for better data and monitoring to enable more informed decision making. III. Private Sector Private sector representatives in locations as diverse as Mumbai and Guwahati were consulted, with IFC organizing two sessions in Mumbai and one in Guwahati for the north-east region. At these consultations, most participants appreciated the SCD narrative and endorsed the constraints and priorities it articulated. The need for strengthening the enabling framework, including policy and regulatory certainty, stronger market linkages, deepening of capital markets and need for credit enhancement instruments was emphasized. They pointed out that access to finance was a major challenge for the growth of firms. Systems therefore needed to be put in place to help small firms access finance, they said. Participants pointed out that the education system needs to be aligned with job opportunities, with on- the-job training being provided by employers, as this was more effective than the public provision of skills. They also said that more needs to be done to promote entrepreneurship. It was said that farmers could be encouraged to conserve natural resources if they were given support in the form of warehousing, drip irrigation and access to markets. For urbanization to be sustainable, participants said, priority should be given to affordable housing for the economically weaker sections. For this, they requested an upstream dialogue on policy reform for the informal housing sector, land titling etc. Participants also suggested that the WBG could help promote competitive federalism by helping states learn from each other. They said the government, NGOs and citizens’ groups would need to work together to achieve better governance and accountability, given the greater push for this from the grassroots. 184 IV. Development Partners/Donors Donors and other development partners largely agreed with the WBG’s overall analysis, and some pointed out that their own assessments were mostly along the same track. Many stressed the need for greater understanding between development agencies to avoid duplication of resources, particularly around social sectors. For instance, among the agencies represented at this meeting, at least six had a major program, whether ongoing or planned, on skilling in India. It was said that targeting the excluded and marginalized was very difficult without a common definition and a single registry of the most vulnerable. This was one area which development agencies could jointly address on priority basis. Participants raised the issue of jobless growth, suggesting that particular focus should be placed on livelihoods, as India’s large informal sector provided employment to the majority. In agriculture the youth could be skilled to face the demands of the sector in the future. The use of urban and rural water was discussed, as well as the need for agriculture to reduce water use. It was said that if waste water recycling technologies etc. could be adopted, the consumption of one sector could supplement the water available for another. In Israel, for instance, 50% of the water use in agriculture came from recycling waste water generated by urban users; this expertise could be shared in India through a WBG program. Many participants said that building state capability was vital; some, however, wondered how this could be done. Donors were currently investing in parallel systems which were not sustainable, they said. A participant felt that the system of bringing in consultants to manage programs was not going to help build state capacity. Another wondered how the public-sector could be strengthened without a “whole government” approach; currently, sectors and issues were being looked at independently. It was suggested that a demand-led perspective could lead to better outcomes. It was thus imperative to create this demand, particularly in areas that had cross-linkages, such as health and pollution. A participant felt that the report glossed over corruption, both in the public and private sectors, and made no mention of conflict and violence which was impacting huge numbers of people. They suggested that the WBG should use data systems and technology to push for systemic changes. They also asked if the WBG had any special plan for developing the 115 “aspirational districts” which the government had identified as a priority. Online Engagement To widen the engagement with as wide a cross-section of people as possible in a country as vast and diverse as India, the WBG made concerted efforts to reach out more broadly through a variety of web and social media channels. The draft SCD was housed on the World Bank’s India website, which gets about 130,000 visitors on average per month. As the consultation process on the CPF got underway, a summary of each consultation session was made available via a special web package. Close to 30,000 people saw these documents online. A special feedback email loop allowed the Bank to get more detailed comments from stakeholders who accessed these materials online. The reach was further amplified via social media channels such as Facebook and Twitter, where factoids, infographics, photo contests, and polls were used to initiate a vibrant online dialogue about India’s development priorities. A special Facebook page was dedicated to 185 the Country Engagement Dialogue and this reached about 337,000 people. A new hashtag #IndiaWeWant was socialized to invite people to share their ideas about the kind of development path they would like to see India take, and a lively conversation was steered online between January and April 2018, peaking late March when it reached about 800,000 people over a week. The engagement was taken forward through the World Bank’s India Twitter channel which reaches over 16,000 opinion-makers in India; the Bank’s South Asia twitter channel (2.5 million followers) helped amplify these messages further. 186