India is said to be in talks with multilateral lenders to secure about $2.5 billion in funding from existing credit lines as New Delhi tees up fresh sources of money after the West Asia conflict crimped its ability to step up spending, according to a Bloomberg report.

The World Bank and Asian Development Bank (ADB) are in discussions to disburse loans worth $1.5 billion and $1 billion, respectively, with announcements likely within the next two months, according to people familiar with the matter. The funding is largely to boost urban infrastructure and create jobs, they added.

India and the World Bank Group announced an agreement earmarking $8 billion to $10 billion in annual financing over five years. The latest funding would be part of that commitment, the people said.

In a statement, the World Bank said it’s in talks with the government for “possible support” to structural reforms aimed at increasing private sector jobs and bolstering growth. The bank didn’t disclose the loan commitment.

India is facing a wider-than-expected budget gap at the start of the financial year after it had to spend more on subsidies to shield citizens from higher oil prices triggered by the Iran conflict.

The proposed funding from multilateral lenders will bolster the government’s existing programmes as Prime Minister Narendra Modi’s administration seeks to upgrade India’s ageing infrastructure and fund urban renewal plans to transform the country into a developed economy by 2047.

The ADB has committed 683 public sector loans, grants, and technical assistance totaling $63.8 billion to India as of end-December.