HYDERABAD, NOV. 20. The State Government has not made any loan applications to the World Bank for the power sector since the agency has reservations over the free power policy.

As the bank differed on free power, the Government has not entered into any agreement with it for loan towards power sector reforms, the Finance Minister, K. Rosaiah, told reporters here today.

Mr. Rosaiah said he did not see any threat to the programmes of the Government if the World Bank backtracked on the release of the third instalment of the Structural Adjustment Loan of Rs. 1,600 crores due to implementation of free power. "It is good if the bank releases the amount as promised earlier. If it backs out, the Government has other alternatives to raise the money," the Minister said.

..Hindu