2nd DPL to Support Inclusive Green Growth and Sust Devlp in HP

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This operation is the second in the series of two Development Policy Loans (DPLs) that supports the Government of Himachal Pradesh (GoHP) to make a permanent paradigm shift to promote inclusive green growth and sustainable development. It leverages financing from the Clean Technology Fund (CTF) in the amount of US$ 100 million that follows on from DPL 1 which was approved by the Board on September 6, 2012 in the amount of $100 million financed through IBRD. The program of DPL 1 and 2 are designed to help GoHP to develop a framework which, if followed, should ensure that energy generation is greener, the dependence on fossil fuels is lower and the impacts on the environment and people are much reduced. This program will assist GoHP in transformative actions in sectors that are key engines of growth (i.e. energy, industry and tourism). These transformative actions include policy reforms and institutional reforms based on the piloting of innovative practices. DPL 2 will be the second and concluding part of the programmatic series following the IBRD-provided budgetary support of US$ 100 million, which is presently being implemented. India's remarkable growth record has been constrained by a degrading environment and growing scarcity of natural resources. Mirroring the size and diversity of its economy, environmental risks are wide ranging and are driven by both poverty and prosperity. Much of the burden of growth and development is falling upon the country's natural assets and its people. Environmental sustainability could become the next major challenge as India surges along its growth trajectory.