India seeks $1.5bn from aid agencies

NEW DELHI, India -- India is seeking $1.5 billion in funds from the World Bank and the Asia Development Bank as it starts to rebuild earthquake-ravaged Gujarat.

Amid desperate scenes of rescue and recovery, analysts are beginning to add up the damage to Gujarat, one of the most heavily industrialized states in India.

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The quake wreaked enough havoc on Gujarat for Indian finance minister Yashwant Sinha to seek $1 billion from the World Bank, and another $500 million from the Asia Development Bank.

"The requirement for funds is going to be enormous," Sinha told reporters late Sunday.

"We have instructed our officers in Washington and in Manila to approach the World Bank and ADB (Asia Development Bank) for assistance in reconstruction work in Gujarat

Economic impact still unknown

The human impact of the quake -- India's worst in 50 years -- is becoming clearer, with at least 12,000 confirmed dead and 32,000 injured. But with many villages and towns now in ruin, analysts say it will take time to complete a full economic assessment of the damage to Gujarat.

India's second most industrialized state, Gujarat is home to an assortment of industries including textiles, pharmaceuticals, agriculture, cosmetics, cement and petroleum products.

World Bank talking with Indian leaders

The World Bank said in a statement it was discussing with the Indian government how it could help, and pledged to stand by India "as it seeks to clear the rubble of this devastating event".

Sinha warned the quake would have an impact on India's economy, which has been slowing because of falling oil prices and a weakening rupee.

"Considering Gujarat is an important contributor to the national income, GDP (gross domestic product), the damage which has been caused will have an impact on the national economy," he said.

Industry in good shape

Sinha said at first glance the industrial base of Gujarat had escaped the earthquake relatively unscathed.

Operations resumed on Sunday at India's busiest port, Kandla, said Shipping Minister Arun Jaitley, adding that port authorities had told him five ships had already sailed from the port while one had been received.

But a senior ministry official said the port still faced communications and power problems and at least half the buildings in Kandla city were hit by the massive quake.

Traders said the quake would have negative impact on the gold trade, as peoples' incomes would be crimped by the need to spend more money on reconstruction rather than luxuries.

Ahmedabad, Gujarat's largest commercial city, is the main hub of Indian gold imports.

Reuters contributed to this report.

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