India has signed loan agreement of US 12 crore dollars with the Asian Development Bank (ADB) to improve irrigation and water management infrastructure in Odisha.
On 7 June 2016 India 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.
• 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.