§ Lord Desaiasked Her Majesty's Government:
What instructions have been given to the United Kingdom's Executive Director at the World Bank concerning the conditions on which aid is to be given to the Indian state of Gujarat for a dam and reservoirs on the Narmada river, in particular concerning the rehabilitation of people displaced by the project.
The Minister of State, Foreign and Commonwealth Office (The Earl of Caithness)The loans in question were approved by the World Bank Board in 1985. We and other concerned members of the Bank have emphasised the importance we attach to satisfactory implementation of the resettlement and rehabilitation arrangements connected with the Sardar Sarovar dam project. At our suggestion and that of other members, the World Bank and the Indian authorities have agreed to appoint an independent team to review the resettlement and environmental aspects of the project.