Andhra Pradesh gets new $1bn loan

Officials say the loan will ultimately benefit the poorest

The World Bank has announced assistance worth $1bn for the southern Indian state of Andhra Pradesh in view of its "success" in carrying out reforms.

The bank said that it wanted to carry on supporting the state government's efforts in various fields.

It said these efforts had been capably and professionally implemented.

The bank says around $500m will be lent for irrigation, while the remainder will be lent for "structural adjustments and urban reforms".

Secret pact

It says that the money will be lent over a period of three to four years.

The BBC's Omer Farooq in the state capital, Hyderabad, says that over the last three to four years the World Bank has made similar loans to Andhra Pradesh.

Meanwhile, left-wing parties in the state have alleged that there is a secret pact between the state government and the World Bank.

They have threatened to hold protests against a reform programme which they argue is linked to the loans.

They argue the reforms will be "disastrous" for the agriculture sector.