World Bank Supports Tamil Nadu in Restoring Traditional Water-bodies
WORLD BANK SUPPORTS TAMIL NADU IN RESTORING TRADITIONAL WATER-BODIES AND IMPROVING IRRIGATED AGRICULTURE AND WATER MANAGEMENT
The Loan/Credit Agreements for the US$ 485 million Tamil Nadu Irrigated Agriculture Modernization and Water-Bodies Restoration and Management Project were signed, here toady in the presence of Shri P. Chidambaram, Finance Minister. The signatories were Shri Madhusudan Prasad, Joint Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of Government of India, Shri S. Rajaretinam, Secretary, Public Works Department, Government of Tamil Nadu and Shri Praful Patel, Regional Vice President, South Asia from the World Bank. Also present on the occasion were both the Ministers of State for Finance Shri S.S. Palanimanickam and Shri P.K. Bansal, Mr Duraimurugan Minister for Public Works, Government of Tamil Nadu, Shri Ashok Jha, Finance Secretary and Shri Dhanendra Kumar, India’s Executive Director in the World Bank.
The Tamil Nadu Irrigated Agriculture Modernization and Water-Bodies Restoration and Management Project is designed to modernize irrigation systems covering over 600,000 hectares in 63 selected sub-basins throughout the State. It proposes an integrated sub-basin approach to synergize the activities of multiple agencies involved with irrigation, on-farm development, agriculture, horticulture, marketing, livestock, fisheries, and applied research. Tamil Nadu is home to about 62 million people living in 17 river basins. Many of these basins are water stressed, as supplies are limited and competing demands are growing.
Speaking on the occasion, Shri Chidambaram said that, “traditional water bodies have been the backbone of irrigated agriculture in Tamil Nadu from time immemorial. Restoration of these water bodies is a key element in unlocking the potential of agriculture development and improving the livelihoods of the people in the State. An estimated 50,000 jobs are expected to be created on both on-farm and off-farm activities in the project area."
“Maximizing our irrigation potential is also an important element of the Bharat Nirman Program. Similar projects for restoration, repair and rehabilitation of water bodies are being prepared with World Bank assistance for other States.”, added the Minister.
Shri Duraimurugan, Minister for Public Works, Government of Tamil Nadu said that this project will improve irrigation service delivery, achieve additional agricultural production, increase farm income and provide employment opportunities to the rural people of Tamil Nadu.
Shri Praful Patel said, “the project will help improve productivity of water in irrigated agriculture and promote diversification into higher-value, less-water intensive crops. Utilizing the storages available in the tanks and in other systems to maximize productivity of water is the most efficient way to achieve the development aspirations of Tamil Nadu.”
The project will place special focus on modernization of Tanks and strengthening of Water Resources Organization and Water User Associations to improve irrigation service delivery. In addition, the project aims to strengthen the institutional framework and tools for sustainable water resources management. Some of the benefits from the project include increased area and reliability of irrigation, 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 with the creation of additional jobs.
Of the total amount of US$ 485 million, an amount of US$ 335 million loan is from the International Bank for Reconstruction and Development (IBRD) and has 20 years to maturity including 5-years of grace period.
The US$ 150 million credit is provided by the International Development Association (IDA), the World Bank’s concessionary lending arm and has 35 years to maturity and a 10-year grace period.
Source:PIB
