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India - Industrial Pollution Prevention Project (English)

Project ratings show mixed results, for despite its likely sustainability, and substantial institutional development impacts, the assessment of outcome is unsatisfactory, as are both performances by the Bank, and Borrower. Lessons are as follows. There is a need to strengthen the technical capacity of financial intermediaries (FIs), before opening lines of credit aimed at reducing, or preventing pollution, to avoid the delays resulting from the FI's inability to screen, and appraise sub-projects, and their inadequate comprehension of the technical standards enforced by the Bank as a condition for sub-loan approval. Furthermore, effective outreach mechanisms supported by strong commitment from FI management should be established, given that industrial borrowing is sensitive to changes in interest rates, and perceived transaction costs. Related to this, is the need for donor coordination to harmonize credit terms within similar on-lending operations, financed by different donors, or at least to minimize the potential for confusion and overlap between programs. Pollution prevention activities should be focused on priority sites where the marginal benefits of pollution reduction are high, and for monitoring systems which can track local pollution trends over time. Therefore, alternative mechanisms to spatially, or thematically target polluting industries could also have been explored, with complementary financial, and technical assistance. In any case, a solid sub-project investment pipeline should have been developed for at least the first project year. Additionally, project components should be more carefully linked with expected outcomes, taking into account the likely time lag between efforts to strengthen regulatory effectiveness, and observed changes in industrial behavior to be encountered. Better analytic work before project preparation might have helped regarding these issues, as well as a substantial time, and level of effort for preparation, and supervision, with technical inputs backed by consistent management oversight and institutional memory from internal reviews.


  • Document Date


  • Document Type

    Implementation Completion and Results Report

  • Report Number


  • Volume No


  • Total Volume(s)


  • Country


  • Region

    South Asia,

  • Disclosure Date


  • Doc Name

    India - Industrial Pollution Prevention Project

  • Keywords

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India - Industrial Pollution Prevention Project (English). Washington, D.C. : World Bank Group.