Announcement of India Receives Twenty Four Million Dollars for Agricultural Development on June 19, 1975

'"'''·' I'. I. ri, •.,,~.1, • INTERNATIONAL DEVELOPMENT ASSOCIATION (~) 1818 H STREET. N.W .. WASHINGTON 0. C. 20433 TELEPHONE: EXEC:-UTIVE 3-6360 IDA NEWS RELEASE NO. 75/41 JUNE 19, 1975 INDIA RECEIVES $24 MILLION FOR AGRICULTURAL DEVELOPMENT The International Development Association (IDA), an affiliate of the World Bank, today announced the approval of a credit of $24 million for the development of the command area of the Chambal irrigation project in the State of Madhya Pradesh. The project will provide all necessary physical works and agricultural supporting services to enable full realization of the benefits of the existing Chambal irrigation system in Madhya Pradesh. An earlier Bank loan of $52 million is financing improvements in the Chambal Command Area in the State of Rajasthan. Madhya Pradesh is the largest State in India with an area of 442,840 square kilometers. It is predominantly agricultural with a population of about 42 million. The Chambal ir- rigation system, situated on the Madhya Pradesh-Rajasthan border, consists of three • reservoirs, a barrage, a common carrier canal on each side of the Chambal River and irrigation networks serving 229,000 hectares in Rajasthan and 224,000 hectares in Madhya Pradesh. At full development, the project will help to increase foodgrains production by 165,000 tons and other crops like pulses, oilseeds and sugarcane by 160,000 tons a year. The gross value of the increused production will be about $30 million a year~ The income of 93,000 farmers, including 35,000 small fanners with farm units of one hectare or less, will nearly double. The project will provide the equivalent of 12,000 additional jobs over the next decade. The Food and Agriculture Organization of the United Nations (FAO) joined the Bank in identifying and preparing the project under the Bank/FAO Cooperative Programme. The IDA credit is for 50 years, including a 10-year grace period. It is interest-free, except for a service charge of 3/4 of 1% to cover IDA's administrative costs. The project is scheduled for compl~tion in 1978 at a total cost of $46.6 mil- lion. The Governments of India and Madhya Pradesh, the Agricultural Refinance Cor- poration (ARC), the Madhya Pradesh Land Development Bank and participating commercial • banks will contribute the balance . Note: Money figures are expressed in US dollar equivalents.  T E CHNI CA L • D A T A PROJECT: Chambal Connnand Area Development (Madhya Pradesh) COUNTRY: India TOTAL COST: $46.6 million IDA FINANCING: $24 mill.ion, standard IDA terms OTHER FINANCING: The Governments of India and Madhya Pradesh, the Agricultural Refinance Corporation (ARC), the Madhya Pradesh Land Development Bank and partici- pating commercial banks. IMPLEMENTING ORGANIZATION: Command Area Authority, Government of Madhya Pradesh, Bhopal, Madhya Pradesh, India. PROJECT DESCRIPTION: The project consists of: (i) irrigation improve- . ment comprising lining of 11 km of the main canal, where seepage is excessive; construction of 77 control structures; increasing the carryin. capacity of 400 km of canals; implementing a full package of on-farm development on a 12,000 hectares area; providing drainage networks and improving 200 km of natural drains in the chaks; (ii) construction and improvement of 206 km village access roads; (iii) a pilot project for ravine erosion control covering about 50 km of ravine perimeter in the project area; (iv) strengthening agricultural extension and research services and the cooperative system; (v) carrying out feasibility studies for further development of the project area; and (vi) technical assistance for preparing future command area development projects throughout India. PROCUREMENT: Out of $~;. 2 million worth of equipment and vehi- cles, $3.0 million will be subject to internation- al competitive bidding. Civil works for irrigation ($8.2 million, basic cost net of contingencies but including building materials), for main and chak drainage ($4.4 million), for on-farm development full package ($2.1 million) and village roads ($4.9 million) will be contracted locally or executed by force account, as none of the works, mainly because of their nature and because of the conditions in the project area, could be grouped into contracts large enough to be of interest to foreign contractors. Fertilizer ($600,000) will be procured in bulk by the India Tender Board through international shopping. CONSULTANTS: A land· development expert will be recruited for a period of two years to advise on the planning, design and construction of on-farm development . • ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 22% 1978 •