Announcement of Irrigation Project in India's Madhya Pradesh State to be Assisted with Thirty-One Million IDA Credit on August 12, 1982

f FOR IMMEDIATE RELEASE eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) ~77-1234 IDA NEWS RELEASE NO. 83/10 u CONTACT: Hugh Blackman · August 12, 1982 (202) 477-3879 IRRIGATION PROJECT IN INDIA'S MADHYA PRADESH STATE TO BE ASSISTED WITH $31 MILLION IDA CREDIT ,, The International Development Association (IDA) ~ill financ~ the second phase of an irrigation p~toj ect in India's Madhya Prade,~h state, with an SOR 27. 6 mi 11 ion {$31 million) credit. Madhya Pradesh, India's largest state, is also one of its poorest. !/ ; The projed~!s first phase, completed in 1981, was desighed to improve irrigation water supply in the command area of the Chamba 1 River.,. As a result, an addi ti ona 1 20,000 he0\tares (ha) were brought under irrigation, drainage works were completed on over 28, 00'0 ha, and tile rura 1 road network expanded by more than 400 k i 1ometers. Crop yields increased considerably .· The.,second phase will expand the irrigated area in the Chambal system by a further 32,000 ha. In addition, the irrigation network covering 40,000 ha and drainage on 4,500 ha will be· upgraded. Part of the Ambah Branch Canal along the Chambal River wil undergo intensive evelopment. A total of 175 augmentation tubewells will pump groundwater into the • i stri buti on system. The canal system wi 11 be enlarged to provide storage that wi 11 regulate the flow of water to assure a constant supply. The distribution system will be upgraded and expanded to serve eight-hectare. plots, thus providing a more reliable water supply to the ta i 1 end of the command area. The project will implement a number of ,i,easures to protect against seepage losses in the main canals, to limit erosion adjacent to canal structures, and to pfevent ravines from encroaching into the irrigated area. Currently, about 3,000 ha of land are lost annually due to the formation of deep ravines in the Central Basin. About 26,000 farm families are expected to improve their incomes as a result of an estimated overall increase in foodgrain production at full project development by 94,000 tons annually. Income levels of landless laborers in the proje(?:t area will increase as a result of increased demand for labor and the higher wag~1 paid in irrigated farming. // ,, Three of the eight previous IDA credits for agricultural development in Madhya Pradesh have supported irrigation. Nevertheless, a major part of the state's irrigation po ten ti a1 is yet to be exp 1oi ted. The IDA credit, to be committed when funds are available, is for 50 years, including 10 yearf of grace it carries no interest, but bears a small annual service charge of O. 75% on the disbursed balances. The State of Madhya Pradesh will finance the ba 1ance of N~e $61. 8 mi 11 ion project1. with $30. 8 mi 11 ion . • NOTE: IDA credits are denominated in SDRs ( Speci a 1 Drawing Rights) , which are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SOR amount of the IDA credit reflects the exchange rates existing a~ the time of negotiation of the credit. ·