Andhra Pradesh Chief Minister Y S Rajashekhar Reddy has rejected the World Bank official's criticism of his "populist schemes" such as free electricity to the farmers, saying that "the State Government cannot close its eyes to the distress of the farmers." Dr Reddy was reacting to World Bank country manager Michael Carter's statement that populist schemes may derail the reform process in the State. In an informal chat with newsmen, the Chief Minister expressed hope that the World Bank will see reason and that there will be no impact of the statement on World Bank aided projects in the State. "The World Bank knows that electricity is already subsidised and we have only given some more subsidy," said the Chief Minister. He appeared unfazed by the virtual threat by the World Bank to review the projects in the State.