India on 7 June 2016 signed loan agreement of 12 crore ($120 million) US dollars with the Asian Development Bank (ADB) to improve irrigation and water management infrastructure in Odisha.
About the loan and how it will help Odisha
• The financing will be used for modernizing seven irrigation subprojects resulting in improved irrigation in over one lakh hectares.
• It will also help in strengthening of Water User Associations (WUAs) and the institutional capacity of Odisha’s Department of Water Resources.
• The project aims to improve existing irrigation infrastructure, operation and maintenance, and water use efficiency that will lead to higher agricultural productivity.
• The selected areas for the investment program are the Baitarani, Brahmani, Budhabalanga, and Subernarekha river basins and part of the Mahanadi delta.
The loan is the second tranche of a 157.5 million dollar financing facility under the Orissa Integrated Irrigated Agriculture and Water Management Investment Program.
The second tranche loan from ADB’s ordinary capital resources has a 20-year term. The State of Odisha, acting through its Department of Water Resources is responsible for implementing the tranche 2 activities and overall program, which are both due for completion by September 2018.
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When: 7 June 2016