Announcement of IDA Assists Irrigation and Agricultural Research Projects in India on July 21, 1977

',.. •World Bank 1tt18 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 78/7 JULY 21, 1977 IDA ASSISTS IRRIGATION AND AGRICULTURAL RESEARCH PROJECTS IN INDIA The International Development Association (!DA), an affii iate of the WC' ... ld Bank, today announced the approval of two credits totalling $83 mill ion to assist agricultural development in India. A credit of $70 mill ion will help finance two irrigation projects in the State of Maharashtra. The other credit of $13 million will assist an agri- cultural research and extension project in the State of Rajasthan. The IDA credits to India are for 50 years including ten years of grace. They a re interest free, f:.xcept for a ~erv ice charge of 3/4 of 1% to meet I DA' s administrative costs. $70 Mill ion Credit for an Irrigation Project in ~aharashtra The credit will help finance four years of infrastructure construction • for the Jayakwadi Irrigation System, begin the modernization of the adjacent Purna Irrigation System, and start a ten to fifteen year corTJnand area development program designed to serve one million hectares. The project will alleviate food shortages, improve farmers' incomes and provide additional employment opportunities. At full development in ten years, the Jayakwadi project will help increase net annual farm incomes from the present average of about $178 to an average estima- ted $1,367 per family. The project will provide about 38,000 man-years of additional employment in agriculture, mainly for landless laborers, who make up one-third of the population. It will increase the annual production by about $24 mill ion worth, in- cluding 111,000 tons of foodgrain. This is IDA's first major irrigation project in the drought-prone Central Deccan region of India. The project marks the first step in an irrigat~on program that will cover over a million hectares in the State. It will serve as a model for major irrigation development in other drought-prone areas. $13 Million Credit for the Rajasthan Agricultural Extension and Credit Project The project is designed to consolidate and strengthen agricultural exten- sion services in 17 out of the 26 Districts in the State of Rajasthan, and help develop adaptive research facilities with the objective of achieving early and sus- tained improvements in agricultural produc~ion, particularly foodgrains. It is estimated that the project will directly benefit about 290,000 contact farmers and • through them at least 1.5 million of the 2.9 million farm families living in the area. NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 112·1 (5-76) T E CHN I CA L D A T A PROJECT: COUNTRY: TOTAL COST: Maharashtra Irrigation Department India $140 mill ion • I DA FI NANC I NG: $70 million on standard terms OTHER FINANCING; Government of Maharashtra, the Agricultural Refinance and Development Corporation, and participating banks. IMPLEMENTING ORGANIZATION: The Jayakwadi/Purna Command Area Development Authority (CADA), Aurangabad, India PROJECT DESCRIPTION: The Maharashtra Irrigation Project will complete the on-going construction (possible within four years) of irrigation infra- structure in the Jayakwadi Irrigation System on the upper Godavari River, modernize part of the infrastructure in the adjacent Purna Irrigation System, and provide the next stage (covering f~ur years) of command area development in Jayakwadi. • PROCUREMENT: Vehicles and equipment ($4.5 million) by international competitive bidding (ICB) in accordance with Bank guidelines. A preference 1 imited to 15% of the c. i.f. price of imported goods, or the prevailing customs duty if lower, will be extended to local manufacturers. Civil works on the Jayakwadi Main Canals by ICB. ($30 mill ion net of contingencies). CONSULTANTS: Eight man-months of engineering consulting services for assistance in setting up measuring equipment, processing and evaluating results. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 17% 1981. - 0 - • • FORM NO. 1121 (5-76) T EC HN I CAL D A T A • PROJECT: COUNTRY: Rajasthan Agricultural Research and Extension India TOTAL COST: $26. 56 mi 11 ion IDA FINANCING: $13 mill ion, standard IDA terms OTHER FINANCING: Government of Rajasthan IMPLEMENTING ORGANIZATION: Agricultural Production Commission, Government of Rajasthan Jaipur, 302004 India. PROJECT DESCRIPTION: The project includes the reorganization and strengthening of agricultural extension services; development and strengthening • of adaptive research with the objective of achieving early and sustained improvements in agricultural production, particularly of foodgrains; and the creation of project monitoring and evaluation facilities. PROCUREMENT: Contracts for civil works ($2.4 million) and about 120 vehicles (0.9 mill ion) will be awarded on the basis of local competitive bidding. A large part of the cost ($21.7 mill ion) will be for strengthening exten- sion and adaptive research services, as well as for upgrading local skills . • ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 50% 1983. - 0 -