Maharashtra’s World Bank Loan Trap: Paying for Nothing

By
Vivek Bhavsar
-
18
399

X: @vivekbhavsar

Part VII – The Hidden Burden of Commitment Charges

Maharashtra has not only paid dearly for the loans it drew — it has also bled quietly for loans it never used. Over the last 25 years, the state has shelled out over ₹50 crore in “commitment charges”, a penalty levied by the World Bank simply because sanctioned funds remained undrawn.

This is money that built no schools, irrigated no farms, and saved no jobs. It is fiscal leakage at its worst: crores drained away only because governments borrowed more than they could spend.

The Early Years – A Few Crores Lost

In the 2000s, commitment charges seemed negligible. Maharashtra’s outgo ranged from just ₹1–5 crore annually. Projects like Bombay Sewage Disposal and Rural Water & Sanitation attracted modest charges when funds lay idle.

See Annexure E1 CC

But the pattern was already there — money leaving the exchequer without any developmental return.

The 2010s – The Curve Rises

By the 2010s, the hidden cost began to grow. Annual charges climbed slowly, touching ₹7.43 crore by 2019–20.

The main culprit was the Climate Resilient Agriculture project, sanctioned in 2018 but poorly utilised in its initial years.

See Annexure E2 CC

Older projects like Water Sector Improvement tapered off, but newer ones ensured the meter kept ticking.

The 2020s – A Silent Drain

The real drain emerged in the 2020s.

  • 2020–21: ₹10.25 crore
  • 2021–22: ₹10.13 crore
  • 2022–23: ₹9.64 crore
  • 2023–24: ₹6.69 crore
  • 2024–25: ₹4.04 crore
See Annexure E3 CC

At its peak, Climate Resilient Agriculture alone absorbed ₹7.42 crore in 2020–21, while the Agribusiness Transformation Project rose steadily, from ₹2.83 crore in 2020–21 to ₹4.16 crore by 2022–23.

Even the Second Dam Rehabilitation Project added to the drain — not by building stronger dams, but by leaving undrawn funds on paper.

2025–26 – The Latest Snapshot

Provisional data for 2025–26 (up to Sept 2, 2025) shows ₹1.72 crore already lost . Almost the entire burden comes from the Agribusiness Transformation Project.

See Annexure E4 CC

Notably, the Climate Resilient Agriculture project, once the costliest, now shows “zero” — only because funds have finally been drawn. The irony: Maharashtra paid crores for years just to “keep the loan open.”

The Bigger Picture

Commitment charges are often dismissed as minor. But over two decades, they have eaten into Maharashtra’s finances:

  • 2000s: ₹1–5 crore a year
  • 2010s: rising to ₹7 crore+
  • 2020s: double-digit crores annually, peaking above ₹10 crore

What began as “loose change” has become a recurring annual tax for inaction.

Commitment charges have ballooned 10-fold in two decades — crores paid not for development, but for loans Maharashtra never even used.

Why This Matters

This is not just bad economics — it is bad governance. Every rupee paid as a commitment charge is a rupee denied to farmers, schools, or hospitals.

The lesson is stark: when governments borrow recklessly and fail to deploy funds, the World Bank still gets paid. Maharashtra, meanwhile, pays for nothing.

Also Read: Maharashtra’s World Bank Loan Trap: Hidden Costs Bleeding the State

Also Read: Maharashtra’s World Bank Loan Trap: The True Cost of Borrowing

Also Read: Maharashtra’s World Bank Loan Trap: Case Studies of Costly Projects

Also Read: Maharashtra’s World Bank Loan Trap: The Escalation Over Two Decades

Also Read: Maharashtra’s World Bank Loan Trap: Policy Questions & The Way Forward

Also Read: Maharashtra’s World Bank Loan Trap: “Climate Project or Cash Drain?”






RELATED ARTICLESMORE FROM AUTHOR

18 COMMENTS

  1. Merely wanna comment on few general things, The website style and design is perfect, the subject matter is rattling great. “Taxation WITH representation ain’t so hot either.” by Gerald Barzan.

  7. I in addition to my pals have been looking through the best tips on your website then the sudden I got an awful feeling I never thanked the web blog owner for those techniques. These people had been as a result excited to read them and now have definitely been making the most of them. Thanks for really being considerably considerate and for getting this kind of ideal subject areas millions of individuals are really needing to discover. Our sincere apologies for not expressing appreciation to earlier.

  11. hello there and thank you for your info – I’ve definitely picked up anything new from right here. I did however expertise several technical issues using this website, as I experienced to reload the web site many times previous to I could get it to load properly. I had been wondering if your web host is OK? Not that I am complaining, but sluggish loading instances times will very frequently affect your placement in google and can damage your high-quality score if advertising and marketing with Adwords. Well I’m adding this RSS to my e-mail and could look out for a lot more of your respective fascinating content. Ensure that you update this again very soon..

  12. You really make it seem so easy with your presentation but I find this topic to be actually something which I think I would never understand. It seems too complex and very broad for me. I am looking forward for your next post, I’ll try to get the hang of it!

  13. Bei der ersten Einzahlung erhalten die Spieler 100% bis zu 150 € plus 50 Freispiele, wenn sie mindestens 50 €
    einsetzen. Die vertrauenswürdigen Auszahlungen, der scharfe Support und
    die erstklassige mobile Funktionalität der Plattform machen sie
    zu einem attraktiven Ziel für Gamer, die nahtlose Unterhaltung unterwegs suchen. WinShark bietet eine beeindruckende Sammlung
    von Spielen von führenden Softwareanbietern, darunter Evolution Gaming,
    NetEnt, Pragmatic Play und Red Tiger.
    Das Winshark Casino etabliert sich als führende Plattform für Online-Glücksspiele im deutschen Markt.
    Registrieren Sie sich einfach, tätigen Sie Ihre erste Einzahlung von mindestens €10, und die Bonusgelder sowie Freispiele erscheinen sofort.
    Diese Ressource behandelt Themen wie Konto-Registrierung, Bonusbedingungen, Zahlungsmethoden und Spielregeln und bietet oft sofortige Antworten, ohne den Support kontaktieren zu müssen. WinShark Casino weiß, dass Fragen und Probleme
    jederzeit auftreten können, weshalb die Plattform rund um die Uhr Kundensupport bietet.

    References:
    https://online-spielhallen.de/princess-casino-erfahrungen-ein-umfassender-uberblick/

  14. Our security protocols monitor account activity for suspicious behaviour
    and implement automatic safeguards when irregular patterns are detected.
    Account verification requires valid identification and proof of address before
    withdrawals can be processed. Our platform implements advanced encryption technology to safeguard personal and financial data during all transactions.
    Our VIP programme includes mobile-exclusive rewards and faster point accumulation for
    app users. We’ve optimised the casino app to perform consistently across various device
    specifications. Level Up Casino supports a wide range of iOS and Android devices with seamless compatibility across different
    screen sizes and operating system versions.
    With over 50 software providers including NetEnt, Microgaming,
    and Evolution Gaming, players consistently find
    engaging content. The casino’s established presence since 2020
    has allowed Australian players to build trust through consistent positive experiences.
    The casino’s minimum withdrawal of $10 and maximum daily limit of $3,000 accommodate both casual and high-roller players effectively.

    The casino’s 4.4-star Trustpilot rating reflects
    genuine satisfaction from verified players who appreciate the platform’s
    reliability.
    Here, you’ll find not just the classics, but numerous variations,
    each providing a unique gameplay experience. Owned and operated by Dama N.V.,
    this casino operates under a legitimate Curaçao eGaming license,
    ensuring a safe and regulated gaming environment.
    If you experience any issues or have questions, Level Up Casino’s customer support team
    is available to assist you. Additionally, all games are regularly audited for fairness and randomness.

    References:
    https://blackcoin.co/45_exclusive-new-jersey-online-poker-vip-programs-compared_rewrite_1/

  15. Yes, Ozwin Casino allows players to test many of their games in demo
    mode, giving you the chance to experience the games without any financial commitment.

    The minimum deposit limits are set at $5 for
    Lightning Bitcoin and $10 for eZeeWallet, Neosurf, and Bank Transfer, ensuring Ozwin Casino is
    accessible to players of all budgets. New members enjoy
    a generous 200% bonus on their first deposit, up to $2000, along with 50
    free spins on selected slot games. Don’t forget to check for welcome bonuses and no-deposit
    offers in the promotions area!
    New Ozwin Casino users can take advantage of a broad welcome bonus system which improves their gameplay
    right from the start. Users with setup account pages can explore
    various games and promotional offers through OZWin Casino to
    make it a suitable choice for Australian gamblers.
    We at Ozwin Casino surprise players with a weekly random draw.
    Ozwin attaches lucrative bonuses to the newest pokies
    each month. The casino renders three free-bonus opportunities
    every week.

    References:
    https://blackcoin.co/a-world-of-play-awaits-syndicate-casino/

LEAVE A REPLY

Please enter your comment!
Please enter your name here