The World Bank has approved a loan of USD 188.28 million to promote economic development in Maharashtra, focusing on the state’s underdeveloped districts. The loan aims to strengthen institutional capacities in these regions, supporting district-level planning and growth strategies.
Investing in District Growth Strategies
The Maharashtra Strengthening Institutional Capabilities in Districts for Enabling Growth operation will provide essential data, funding, and expertise to help districts make the most of public investments aimed at fostering growth and job creation. The goal is to ensure effective use of public funds to stimulate economic progress.
Enhancing Private Sector Participation
A key feature of the project is to increase private sector involvement, particularly in the tourism industry, by improving e-government services. The initiative will enhance the efficiency of online services for businesses, thereby supporting private sector growth in the state.
World Bank’s Country Director for India, Auguste Tano Kouamé, highlighted that the program will foster evidence-based planning and policymaking. It will also improve coordination between the public and private sectors, facilitating better service delivery to citizens. This approach aims to ensure sustainable, broad-based growth, especially in lagging districts.
Unlocking the Potential of Public Data
The operation will also focus on developing a data governance framework, including the creation of the Maha Databank. This initiative will enable better coordination and analysis of data, helping to address key development challenges such as gender disparities.
Incentives for Performance-Based Growth
A key aspect of the program is the introduction of an incentive framework. Districts that meet performance targets will receive annual fiscal rewards. The project will also strengthen online portals like MAITRI 2.0 and RTS, making government services more accessible to the private sector.
The loan, sourced from the International Bank for Reconstruction and Development (IBRD), comes with a 15-year maturity period, including a 5-year grace period. The investment is expected to contribute significantly to Maharashtra’s long-term economic growth and development.
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