Announcement of India Agricultural Development Project on March 15, 1991

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 K EWS RELEASE NO. 91/54 Contact: P.B. Sison IDA NEWS RELEASE NO. 91/53 Tel: (202) 458-0344 INDIA: AGRICULTURAL DEVELOPMENT PROJECT The following is additional information on a project announced in the latest issue of World Bank News, which was faxed to you yesterday. DATE: March 15, 1991 WORLD BANK GROUP SUPPORT: World Bank loan, $20 million. International Development Association credit, SDR 64.1 million ($92.8 million). The World Bank loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.73 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. The IDA credit is for 35 years, including 10 years of grace; it carries no interest, but has an annual charge of 0.75 percent on the disbursed balance and a variable charge of up to 0.5 percent (currently zero percent) on the undisbursed balance. OTHER FINANCING: Government of Tamil Nadu, $18.0 million; Beneficiaries, $2.5 million TOTAL COST: $133.3 million IMPLEMENTING AGENCY: Government of Tamil Nadu ESTIMATED COMPLETION DATE: 1999 PROJECT DESCRIPTION: The objective of the "Agricultural Development Project" is to introduce policy and institutional reforms for greater technical, financial, and economic efficiency in the agriculture sector. The project will: (a) improve the government of Tamil Nadu's capability to analyze development constraints, establish investment priorities, make informed policy choices, and rationalize public expenditures in agriculture; (b) develop cost-effective services to farmers; (c) help finance selected priority public investments in the sector; and (d) encourage an expanding role for the private sector in the provision of agricultural services. The project includes: (a) technical support to strengthen the government of Tamil Nadu's agricultural planning capabilities and the coordination and monitoring capabilities of the Office of the Agriculture Production Commissioner; (b) expanding agricultural extension services; (c) improving breeder and foundation seed production; (d) watershed development in pilot areas; (e) strengthening artificial insemination and disease diagnostic services, semen production facilities, and fodder production; (f) upgrading reserve forests and interface areas near adjoining villages; (g) upgrading about 800 km of existing roads; and (h) increasing rural water supply, based on handpump technology.