Announcement of IDA Assists Agricultural Extension and Research in India on December 29, 1977

-• World Bank 1818 H S<reet, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 78/31 DECEMBER 29, 1977 IDA ASSISTS AGRICULTURAL EXTENSION AND RESEARCH IN INDIA The International Association (IOA), an affiliate of the \.Jorld Bank, todav. announced the approval of a credit of $3 mill ion to help finance a project designed to reorganize and strengthen agricultural extension ser- vices and upgrade and develop adaptive research in the State of Bihar in India. The main objective of ~he project is to achieve early and sustained improvements in agricultural production, particularly or foodgrains. Re~ '~t agricultural reviews in India have stressed the potential for achieving a significant and broadly distributed increase in production • by improving basic cultural practices through regular and systematic train- ing and visits to large numbers of farmers by village level extension workers. This system has the' capacity to transmit appropriate recommenda- tions from research to the village level quickly and at no extra cost. The new extension service was first tried in canal command areas of three World Bank/lDA-assisted projects in the States of Rajasthan and Madhya Pradesh and has resulted in dramatic production increases. This approach has been introduced in India through a series of five projects being assisted by IDA. Under these projects, nearly 15 million farm families in the States of Orissa, West Bengal, Assam, Rajasthan and Madhya Pradesh are expected to benefit. The present credit of $8 million will help extend the improved system in the State of Bihar. The main result from the project will be an increase in foodgrain production benefiting an estimated 7.8 ir.i 11 ion farm families in Bihar. Small farmers with limited financial resources, but excess labor will b~ the primary beneficiaries. The IOA credit to India is for a tenn of 50 years, including TO years of grace. It is interest· free, except for a service charge of 3/4 of 1% to meet IOA's administrative costs. - 0 - • NOTE: Money figures are expressed in U.S. dollar equivalents. ;:ORM NO. 112'1 (5-76) T ECHN I CAL DA T A • PROJECT: Agricultural Extension ~nd Research (Bihar) COUNTRY: India TOTAL COST: S16 mi 11 ion I GA I=' I NANC I NG : $2 mill ion credit on standard IDA ter~s OTHER FINANCING: Government of Bihar IMPLEMENTING ORGANIZATION: The Agricultural Production Commission Gov~r~~ent of India Patna, Bihar. PROJECT DESCRIPTION: The project will help reorganize ~gricultural extensio~· services and upqrade and develop adaptive research with. the objective of achieving early and sustained improve- ments in agricultural production, particularly of food- grains. • PROCUREMENT: Contracts for civil works ($4.94 million) will be awarded on the basis of local competitive bidding. These con- tracts will be small and spread geographically over time. About 200 motor vehicles (51 .59 mill ion) will be pur- chased over 5 years through local competitive bidding. • ECONOMIC RATE OF RETURN: 50% ESTIMATED COMPLETION DATE: April 30, 1983. - 0 -