The USD 2.96-billion (about Rs 12,385.9 crore) World Bank loan that the Transport Ministry

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had sought is likely to come in tranches, with Finance Ministry favouring only USD 1 billion currently over repayment concerns.

"Roads are a multiplier for the economy. Keeping in mind the immediacy to develop roads we have currently sought USD 1 billion from the World Bank out of the USD 2.96 billion sanctioned so that it can be paid back on time. The remaining will come in tranches," a senior Finance Ministry official said.

Transport Ministry had sought the loan in August 2009 for double laning of 6,372 km of single-laned highways, out of the total 19,702 km single-laned ones in the country, under National Highways Development Project (NHDP) Phase IV.

The World Bank had in December last year given an 'in- principle' approval to the total loan.

"Of this amount (USD 2.96 billion), the Department of Economic Affairs (DEA) has currently requested the World Bank to deliver a loan of USD 1.0 billion and the balance in the next Country Strategy period starting from 2012," the World Bank said in an e-mailed reply.

The World Bank has a periodic country strategy for monetary assistance to different nations. The latest one is up to 2012 for India, the multilateral lender said.

Neither the DEA official nor the World Bank gave specifics of the terms of the loan.

"A clearer picture on the scope of this assistance will be available in the next couple of months," the World Bank's email added.