A World Bank spokesman has confirmed that it is to suspend two more loans to India worth two-hundred-and-six million dollars.

The Bank says that projects worth one-billion-dollars altogether have now been postponed since India carried out a series of underground nuclear tests last month.

The money was to have been used to develop schemes in the energy and agricultural sectors.

India is the world's largest borrower of World Bank loans, and analysts say the government will be watching the curtailment of funds with some concern.

The Bank has however made clear that it will only withhold money from projects that have not yet begun -- ongoing schemes will be unaffected.