World Bank, which had earlier stopped funding three health projects in India alleging corruption, announced on Wednesday that three programmes would get financial assistance of $672 million from it.
The three projects that would be eligible for funding are the second phase of Reproductive and Child Health project ($360 million), Second National Tuberculosis Control project ($170 million) and Karnataka Health Systems Development and Reform project ($141.83 million).
These programmes are designed to improve reproductive and child health services, reduce mortality and morbidity due to tuberculosis and increase utilisation of essential health services in Karnataka.
World Bank management had earlier decided against presenting these projects before its Board, as it was investigating allegations of wrong-doing in procurement of pharmaceuticals in the first phase of the RCH project.
The investigation found instances of serious deficiencies in procurement and its practices. These findings were passed on to the government of India, which initiated strong action in response to the information.
"The Bank and the government of India have agreed to implement a strong action plan aimed at addressing collusion and corruption in procurement across the health sector," World Bank Vice-President for South Asia Praful Patel said.
"These measures will help provide a larger framework to improve governance in the health sector in India and ensure that quality health services are available to millions of poor people," Patel said.
The $360 million credit for the RCH-II Project is targeted at improving the health of indigent women and children, who live in rural and tribal areas and urban slums.
By supporting the expansion and use of essential RCH services, the project aims to accelerate India's progress towards maternal and child health goals outlined in its national policies and the Millennium Development Goals.
Despite progress made in improving health care delivery, India still has very high levels of maternal and child mortality.
About 136,000 women and 2.4 million children -- roughly a fifth of the world's total -- die every year in India mostly as a result of preventable causes.
The project is part of the New Delhi's multi-billion dollar RCH-II programme launched last year and supported by several other donor partners.
The $170 million credit for the Second National TB Control Programme aims to achieve the global targets of 70 per cent case detection and 85 per cent cure rate and for the zones, where Directly Observed Treatment Short course has been under implementation for five or more years, to decrease the incidence of smear-positive.
The $141.83 million credit for the Karnataka Health System Development and Reform Project will also focus on maternal and child health and on communicable diseases to contribute to the achievement of the health-related MDGs.
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