Announcement of One hundred Twenty-Seven Million US Dollars IDA Credit to Support Large-Scale Irrigation System in India on August 19, 1982

/J FOR IMMEDIATE . RELEASE / .World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (20,2) 477-1234 IDA NEWS RELEASE NO. 83/11 Contact: Hugh Blackman August 19, 1982 (202) 477-3879 $127 MILLION lDA CREDIT TO SUPPORT LARGE-SCALE IRRIGATION SYSTEM I N I NO rA ., 1/ The first phase of a large-scale irrigatioh project covering portions of i/ three states in India will be assisted by the International Development Association (IDA) with an SDR 116.3 million ($127 million) credit. The governments of Bihar, Orissa, and West Bengal states are providing $54.9 million for the initial phase of the $182 mi 11 ion pr,pject, which is scheduled to be completed in 1986. This phase covers four years df the development of the Subernarekha Irrigation System. When fully dev~loped i~ 1992, the system will provide reliable water supply to about 255,000 hectares (ha) in the three states. About 130,000 rural famllies are expected to directly benefit from the system. F~odgrain production will increase by 700,000 tons per year, and 163,000 jobs will be generated, includ- ing jobs not related to farming. In addition, flood damage will be reduced in Orissa and West Bengal. • Most of the project works dw.r:-ing the first foLJr-year phase will be in Bihar. Two dams, a barrage, and their associate canals, will be partially constructed • 1 (~ Development of irrigation will be·.$ta\'rted on 21,000 ha. Pilot irrigation works will be ~tarted in Bihar and Criss~. The government of Bihar will extend a Training and Visit agricultural extension service to all farmers in the project area in Bihar. Completion of the total R!JrOject will submerge about 30,000 ha in Bihar c1r,d Orissa, affecting some 10,000 fa' 111i 1 ies in Bihar and 1,000 fami 1 ies in Orissa~< , 1 Although the first submergence will not begin until 1987, resettlement of tl1splaced families will begin under this first phase of the project. The government of Bihar has already appointed rehabilitation committees and taken other necessary steps which will ensure that each family affected by the project will be offered a choice of relocation alternatives. Sufficient funding to ensure adequate relocation of all families and an effective monitoring program will be provided. Since the irrigation system will also supply water for industrial and municipal use in Bihar, pollution control measures are an important element in the project. The credit from the World Bank's affiliate for concessionary lending, to be committed when funds are avaJll.rble, is for 50 years, including 10 years of grace; it carries no interest but bear~ a small annual service charge of 0.5% on the undisbursed balance of the credit, and 0.75% on the disbursed balance. NOTE: • IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a 11 basket 11 of currencies. The U.S. dollar equivalent of the SDR amount of the IDA credJt reflects the exchange rates existing at the time of negotiation of~the credit.