BANGALORE. India. Nov 10 The World Bank announced Thursday a loan of 120 billion rupees (2.7 billion dollars) for anti-poverty initiatives in the southern Indian state of Karnataka. reports AFP.

Visiting World Bank president James Wolfensohn said the initiatives would include water supply, tank irrigation and watershed management projects.

The bank will also finance highway and urban water investments and support fiscal, governance and power programmes.

The loans are for over a period of several years and the interest rate "will be at around Libor plus." Wolfensohn told reporters here on the latest leg of his tour of World Bank projects in India.

Wolfensohn praised the Karnataka government’s admirable efforts to improve social conditions, but also stressed that reforms must begin at home.

Karnataka Chief Minister SM Krishna said the state had put in place a credible implementation package for antipoverty and social programmes-“We have worked out a number of projects 1

Bank has as one of developing

designated Karnataka the focus states for •in. Krishna said.