TN bags 485 mln WB loan to improve irrigation

New Delhi, Jan 24 (UNI) The World Bank today approved an assistance package of 485 million dollars to the Tamil Nadu Government to raise agriculture productivity by modernising the state's irrigation infrastructure.

Of this, the loan of 335 million dollars is from the International Bank for Reconstruction and Development (IBRD) and has a 20 year maturity including a five-year grace period.

The 150 million dollars credit is provided by the International Development Association (IDA), the World Bank's concessionary lending arm and has 35 years' maturity and a 10-year grace period.

The Tamil Nadu irrigated agriculture modernisation and water-bodies restoration and management project is designed to modernise irrigation systems covering over 6,00,000 hectares in 63 selected sub-basins throughout the state.

Under the package, an integrated sub-basin approach will be adopted to synergise the activities of multiple agencies involved with irrigation, on-farm development, agriculture, horticulture, marketing, livestock, fisheries, and applied research, a World Bank statement here said.

About 62 million people, mainly from the poorer sections of society, living in rural areas and solely dependent on agriculture, live in 17 river basins of the state. Due to limited supplies, increasing pollution, and growing demand for water, many of these basins are water stressed.

The agricultural sector in Tamil Nadu faces major constraints due to poor state of irrigation infrastructure, water scarcity, groundwater overdraft, and pollution of surface and ground waters.

Special focus will be laid on modernisation of traditional tanks supported by Government of India initiative. The Water Resources Organisation and Water User Associations would be strengthened to improve irrigation service delivery.

Work will also be initiated on improving the management of the Cooum sub-basin.

Besides increased area and reliability of irrigation, the project is expected to bring about increase in production, productivity, and profitability of foodgrains, oilseeds, pulses, fruits, vegetables, sugarcane, green fodder, milk and fish in inland water bodies.

Farm incomes are expected to rise in project area households and about 50,000 rural farm jobs created under the project, the release noted.

According to Srinivasan Raj Rajagopal, World Bank Lead Water Resources Specialist and project task team leader, participation and ownership of farmers and their organisations was critical for sustainable irrigation and agricultural intensification and diversification.

"In this project, participatory planning, design, implementation, and monitoring have been built in to instill a sense of ownership, improve transparency and reduce conflicts," he said.

UNI