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A paradox is that India has for long been a major borrower from the World Bank and International Development Association (IDA), but there is a profound antipathy in the country towards value judgements handed down by World Bank economists. The antipathy is particularly pronounced when it relates to the iron and steel sector.
Immediately after India became independent, the World Bank poured cold water on India's ambitions for the development of the iron and steel industry. The basis was laid in the Indian public sector thanks to the generosity of the British, West German and Soviet Governments which aided the construction of the Durgapur, Rourkela and Bhilai plants. The Soviet Union came in with further aid for the two expansions of Bhilai, and for the Bokaro and Visakhaptnam plants.
The World Bank's record is peculiar in that it has aided only the development of two already existing plants in the private sector, the Tata Iron and Steel Company and the Indian Iron and Steel Company (which was nationalised in 1972). There has been no World Bank or IDA assistance to integrated steel plants in the public sector (Government sector). In...