$325m World Bank Farm Package For Andhra

The World Bank yesterday sanctioned a $325 million package for boosting agriculture output in Andhra Pradesh through an irrigation project.

While $175 million would be provided by the International Bank for Reconstruction and Development (IBRD), the banks concessionary lending arm, the International Development Asso-ciation (IDA) would give a $150 million credit for the project.

Apart from consolidating the states effort towards better utilisation of water resources in its drought-prone and economically less-developed inland regions, the project would serve as a vehicle for implementation of irrigation refor- ms, a bank release said.

It would improve the agricultural productivity of more than 300,000 hectares which would raise the incomes of mostly small and marginal farmers, the bank said.

 

Building on past irrigation investments, the project will support the states commitment to complete its investment programmes for two inland irrigation schemes started under the second A P Irrigation project, viz, the Srisailam right branch canal and the Sriramasagar project.,While the Srisailam sub-project includes completion of a 65,000 hectare irrigation network and about 50 km of new feeder roads, the Sriramasagar project envisages rehabilitation of 253,000 hectares of irrigation system and 50 km of new feeder roads, the bank said.

The project would also implement irrigation water distribution and canal management policies that are needed to provide available water equitably to the beneficiaries in both the sub-projects.

Total project costs are estimated to be $477.43 million of which International Bank for Recons truction and Development will finance $175 million while the state government will give $152.43 million.

Besides agricultural support service programmes, the main project components also include resettlement and rehabilitation and environment management besides dam rehabilitation and safety assurance, the bank release said.