ADB lends $120 mn for irrigation project in Odisha

The Dollar Business Bureau

India and the Asian Development Bank (ADB) on Tuesday signed a $120 million loan agreement to facilitate irrigation and water management infrastructure in Odisha.

The second tranche of the $157.5 million loan, under the Orissa Integrated Irrigated Agriculture and Water Management Investment Program, will be used for upgrading seven irrigation subprojects, which will improve irrigation in more than 100,000 hectares and strengthen Water User Associations (WUAs) and the capacity of the state’s Department of Water Resources.

The investment will be made across Baitarani, Brahmani, Budhabalanga, and Subernarekha river basin areas and parts of the Mahanadi delta.

“Agriculture is a priority sector for India and especially for Odisha because of its high potential to generate jobs and contribute to inclusive and sustainable economic growth. The project aims to improve existing irrigation infrastructure, operation and maintenance, and water use efficiency that will lead to higher agricultural productivity,” said Raj Kumar, Joint Secretary, Department of Economic Affairs.

“The investment program has already demonstrated the value of participatory irrigation management and will continue to support the WUAs to manage planning, construction, operation and maintenance of irrigation systems as an equal partner of the government,” said M Teresa Kho, Country Director, ADB’s India Mission.

The second tranche loan has a 20-year term, and Odisha is responsible for the implementation of the tranche 2 activities and overall program, both to be completed by September 2018.