Announcement of IDA Approves One Hundred Eleven Million Dollars for Irrigation in India on August 10, 1978

.· FOR IMMEDIATE RELEASE , . ~ ~ eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 79/10 AUGUST 10, 1978 IDA APPROVES $111 MILLION FOR IRRIGATION IN INDIA The International Development Association (IDA), an affiliate of the World Bank, today announced the approval of a $111 million credit for an irrigation project in Haryana State in India. The $222 million project will help the North Indian state to complete its program of modernizing, mainly through canal lining, about 30% of its surface irrigation system and develop supplemental groundwater. It will also accelerate development of irrigated agriculture in the Jui Lift Irrigation Command Area. In Haryana State, the major constraint to increasing crop production (wheat, gram, pearl millet and rice) is limited irrigation water supplies. • Available surface water resources have been fully developed or conmitted. Groundwater development in many areas is reaching the maximum sustainable yield. Further expansion of agricultural production can only be achieved by improved efficiency and reliability of existing surface irrigation systems. The project being assisted with the IDA credit will help to achieve such efficiency and reliability, and thus save water for bringing some 290,000 hectares of additional land under irrigation. It will also improve associated rural infrastructure, in particular by the provision of village drinking water and the construction of improvement of village access roads and rural markets. At full development, the project will increase annual foodgrain production by 337,000 tons, valued at $60 million. IDA has been directly involved in agricultural development in the state through the Haryana Agricultural Credit Project for which a $25 million credit was approved in 1971. The project will provide irrigation for about 69,000 hectares. The IDA credit to India is for 50 years, including 10 years of grace. It bears no interest but carries a service charge of 3/4 of 1% per annum to meet IDA's administrative costs . • NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T E C HN I CA L DA T A PROJECT: COUNTRY: TOTAL COST: Haryana Irrigation India $222 million • IDA FINANCING: $111 million, standard lDA terms OTHER FINANCING: Government of Haryana Agricultural Refinance and Development Corporation Participating banks and farmers IMPLEMENTING ORGANIZATION: Chief Secretary to Government, Haryana Chandigarh India PROJECT DESCRIPTION: The purpose of the project is to help Haryana complete modernizing (mainly by canal lining) about 30% of its surface irrigation systems, develop supplemental groundwater; accelerate development of irrigated agriculture in the Jui Lift Irrigation Convnand Area; construct or impr~ 26 produce markets and about 1,390 km of vi 1lage 1 ink roads; p·rovide drinking water W, about 175 villages; and provide technical assistance to help project monitoring, evaluation, research and development. PROCUREMENT: Civil works will be labor-intensive, relatively small and scattered throughout the state, and restricted to seasonal construction. They will be carried out by local contractors or, under special circum- stances,:by. force account. Modernization of water-courses and some small canals will be awarded under small unit price contracts or force account. Vehicles and equipment {$4. 1 million) will be procured locally. CONSULTANTS: A total of 24 man-years of local consultant time for setting up project units and training permanent staff. A total of 45 Man-months of local consultant time for carrying out project monitoring studies . ECONOMIC RATE OF RETURN: 32% ESTIMATED COMPLETION DATE: 1982 - 0 - •