Announcement of India to Borrow from World Bank for Improving Use of Irrigation Water on June 13, 1983

C) FOR IMMEDIATE RELEASE ~ • World Bahk~~,., 1818 H Street1 N.W., Washington, Q.C. 20433, U.S.A.• Telephone: (202) 477-1234 /( \} BANK NEWS RELEASE NO. 83/108 Contact: Hugh' Blackman IDA NEWS RELEASE NO. 83/99 (202) 477-3573 June 13, 1983 INDIA TO BORROW FROM WORLD BANK fOR IMPROVING USE OF IRRIGATION WATER India will use World Bank funds totalling $54.7 million to enable farmers in Maharashtra state to make better use of irrigati9n water. The World Bank is providing a $22.7 million loan from the .International Bank for Reconstruction and Development (IBRD) and a credit of :,SDR 29. 6 mi.llion ( $32 million) from the International Devel9pment Association (IDA), the World Bank's affiliate for concessionary lending. The World Bank funds will support a $78.1 million project which will upgrade distribution systems on 95,000 hectares in five irrigation schemes: Jayakwadi, Purna, Mula, Girna, and Khadakwasla. The project is expected to" result in increased annual production of sugarcane, foodgrains, bananas, and groundnuts, by a total o! 391,000 tons. To ensure reliable water supplies at the farm level, improvements • will be made to minor irrigation networks, through the upgrading of field channels, surface drainage systems, and access roads ·3-long canals. Under the project, adaptive research will be carried out to identify suitable farm-level irrigation practices and 'viable cropping systems. Six centers for training ~armers, canal inspectors, and land development assistants, will be constructed. The project will also finance surveying, communication, and construction equipment and introduce improvements in w~ter management. The IDA credit is for 50 years, including 10 years of grace; it carries no interest but has small annual service charges (0. 5% on the undisbursed balances of the credit, and 0.75% on the disbursed balances). The IBRD loan is for 20 years, including five years of grace, at an annual interest rate linked to the cost of Bank borrowings. The loan also carries an annual commitment charge of 0.75% on undisbursed balances and a front-end fee of 0.25% on the amount of the loan. NOTE: Money figures are expressed in U.S. dollar equivalents • •