India, World Bank to give 120 mln dlr for Karnataka Panchayats

New Delhi, July 24 (UNI) The World Bank today signed an agreement with India for a soft loan of 120 million dollars (IDA funding) for strengthening the Karnataka Panchayat Project.

The Karnataka Panchayat Strengthening Project Agreement aims to improve the service delivery system in the rural areas of the state.

The agreement was signed by Mr Madhusudan Prasad, Joint Secretary, Department of Economic Affairs on behalf of the Centre, Mr Michael Carter, Country Director (India), World Bank, and Mr V P Baligar, Principal Secretary, Government of Karnataka.

The project, which will be implemented over a five-year period, aims at improving the efficacy of service delivery by Karnataka's gram panchayats, particularly the management of public resources and essential rural services.

The project includes monitoring the panchayat system at the state level and restructuring of state line agencies and the State Institute of Rural Development.

The main components of the project are providing block grants to panchayats to build the capacity of panchayats and the state government agencies.

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