Announcement of India Receives Thirty Four Million Dollars for Agricultural Development on April 24, 1975

~.' ,:. I. () I'.,, • INTERNATIONAL DEVELOPMENT ASSOCIATION (~) 1818 H STREET. N.W .. WASHINGTON 0. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA News Release No. 75/17 April 24, 1975 INDIA RECEIVES $34 MILLION FOR AGRICULTURAL DEVELOPMENT A.credit of $34 million from the International Development Association (IDA), an affiliate of the World Bank, will help to finance an agricultural development project designed to increase foodgrain production, farm income and rural employment in India's West Be~gal State. The project will support a four-year program of investments to improve minor irrigation, agro-service centers for the distribution of ~nputs, regulated markets, and agricultural extension services. The Agricultural Refinance Corporation (ARC) and the Government of • West Bengal will be the channel for IDA funds • West Bengal has about 8% of India's population on less than 3% of its land. Agriculture accounts for almost 50% of the State's income and 60% of the jobs. Like other States in Indi,, West Bengal has given priority to the development of agriculture. The major benefits resulting from the project will be additional production of 310,000 tons of foodgrain a year worth $50 million, and the generation of about 100,000 man-years of labor per year, in an area where unemployment is a serious problem. About 200,000 farmers will benefit directly from the project. About 75% of these will be small farmers. The project is scheduled to be completed in 1979 at a total estimated cost of $67 million. The IDA credit will meet about 51% of the cost of the project. The IDA credit to the Government of India is for 50 years including 10 years of grace. It is interest free except for a service charge of 3/4 of 1% to cover IDA's administrative expenses • • Note: Money figures are expressed in US dollar equivalents. PROJECT: TECHNICAL DATA Agricultural Development (West Bengal) • COUNTRY: India TOTAL COST: $67 million IDA FINANCING: $34 million, standard IDA terms OTHER FINANCING: The Government of West Bengal, the Agricultural Refinance Corporation (ARC), participatin·g Banks and farmers. IMPLEMENTING ORGANIZATION: ARC and the Government of West Bengal, Calcutta, India. PROJECT DESCRIPTION: The project consists of: a) 18,000 electrically or diesel powered shallow tubewells; b) 600 river. lift and deep tubewell completions; c) 100 deep tubewells for West Bengal Minor Irrigatfon Corporation (MIC); d) 200 deep tubewells for farmers' groups; e) 200 agro- service centers; f) the development of three markets; g) equipment and technical assistance; h) improvement of extension services; and i) the preparation of a second stage project. PROCUREMENT: All equipment, material and civil works will be procured locally except for a small amount of scientific equipment which will be imported directly. Grouping of contracts fer centralized procurement in respect of small, diverse, geographically scattered and discontinuous investments are unsuitable for international competitive bidding. ESTIMATED COMPLETION DATE: 1979 -0- •