NEW DELHI. Oct 9. The World Bank has agreed to loan India 300 million US dollar to rebuild villages destroyed by a major earthquake that killed thousands of people the gov eminent said yesterday, reports Reuter

It said the money would be used to build earthquake — proof houses to replace those of rock and mud that collapsed when the tremors struck in the middle of the night on September 30. killing up to 22.000 people.

Th. money, loaned at low interest rates the government statement did not disclose, would also help repair roads telecommunication*, cower

drinking water supplies and dams. It would also buy medical supplies for the shattered area in the western state of Maharashtra.

The World Bank would also loan 1 5 million US dollar for a feasibility study to design plans to produce markedly better house for the survivors In 90 villages devastated by the earthquake.

The Maharashtra government In Bombay, the state capital. had estimated it would cost 200 million US dollars to rebuild the villages, which It wants to do by February.

Relief, both material and money, has poured In from

around India and the world for the survivors of the earthquake, most now housed In tents and being fed by volunteers with food trucked in from outside the region.

The Indian army mounted what It described as its biggest peacetime operation to rescue people burled' under feet (metres) of rubble, although few were found alive, big out the dead and cremate or bury them quickly to head off epidemics that often follow disasters as people drink polluted water

The army has now switched Its priority to clearing the rubble. preparing for the rebuilding programme.