Announcement of Irrigation Project in India Supported by IDA on January 27, 1983

FOR IMMEDIATE RELEASE •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 83/39 Contact: Pushpa Schwartz January 27, 1983 (202) 477-3294 IRRIGATION PROJECT IN INDIA SUPPORTED BY IDA The irrigation system in northern India's State of Haryana will be modernized with the assistance of an SDR 139 million ($150 million) credit from the International Development Association (IDA). IDA is the concessionary affiliate of the World Bank. Nearly 85% of the irrigation works under the $300.3 million project are located in sandy areas where seepage rates from canals and watercourses are high. Through better usage of available irrigation water, agricultural production in the area (pearl millet, wheat, chickpea, and cotton) will increase by about 491,000 tons annually by 1988, and rais.e net farm incomes. The Haryana Irrigation II Project will accelerate implementation of a state-wide program of lining canals and watercourse channels .. The IDA credit • will finance the lining of 2,900 kilometers of canals, improved water regulation facilities, and the modernization of 7 million meters of watercourses. A two-way radio network for improving communications between the Bhakra and Western Yamuna Canal systems will also be installed. Installation of 325 augmentation tubewells will optimize the joint utilization of groundwater and surface water resources. About 100 sprinkler sets will be provided to serve an area of 40 hectares each. The first Haryana Irrigation Project assisted the state in moderni.zing about 30% of its canal irri.gation work and in developing supplemental groundwater supplies. The project, which benefitted from a $111 million IDA credit approved in 1978, is expected to be completed six months ahead of schedule, in February 1983. The IDA credit is for 50 years, including 10 years of grace; it carries no interest but bears a small service charge (0.5% on the undisbursed balances of the credit and 0.75% on the disbursed balances). NOTE: IDA credits are denominated in SDRs (Special 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 at the time of the negotiation of the credit • •