Announcement of International Development Association Supports Agricultural Development in India on June 30, 1977

.world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RE LEASE NO . 77 /72 June 30, 1977 INTERNATIONAL DEVELOPMENT ASSOCIATION SUPPORTS AGRICULTURAL DEVELOPMENT IN INDIA The International Development Association (IDA), a World Bank affiliate, is providing a credit of $8 mi 11 ion to help finance an agricultural development project in the State of Assam in India. The project wi 11 help to improve agricultural extension services in eight of Assam's districts containing about 97 percent of the population, and lay the base for improvements in groundwater development. The five-year project was prepared by the Government of Assam with assistance from the Food and Agricultural Organization/World Bank Cooperative Program. It provides for a com- plerrentary package of components, designed to achieve early and sustained improvement in agricultural production by strengthening extension and research services, so as to bring proven agricultural practices to farmers living on the plains districts of Assam. The project covers the two valleys of the Brahmaputra and the Barak, where rrost of the State's annual crops are gro1tm, including rice -- the rrost important crop -- and other commercial crops, including tea, oilseeds, jute and sugarcane. Under the project, which is estimated to cost a total of $16.4 million, a wel 1-·trained, • ighly motivated and technically competent extension organization wil 1 be created, to give farmers practical technical guidance aimed at increasing production and incomes. In addition to the complete reorganization and strengthening of agricultural extension services, the project wi 1 l develop and strengthen adaptive research, strengthen Assam's Irrigation Depart- ment and establish a project for rronitoring and evaluating facilities, with the prov is ion of staff and equipment. The benefits of the project include an increase in crop yields, and over the five years, it will directly benefit about 200,000 "contact" farmers- and through them, at least one million farm families; primarily small farmers with limited financial resources, but excess labor. As a result of the improved efficiency in utilization of resources through the project, it is calculated that by year seven, the State of Assam's production of rice could increase by about 43,000 tons. The IDA credit of $8 mi 11 ion is being made to the Governrrent of India for a term of 50 years including 10 years of grace. It is interest free except for a service charge of 3/4 of 1% to meet IDA's administrative costs. The proceeds of the credit wi 11 be channel led to the Governrrent of Assam in accordance with the Government of India's standard terms for financing state development projects. - 0 - • ote: Money figures are expressed in U.S. dollar equivalents . FOAM NO. 1121 (!S-76) T E C HN I CA L D A TA PROJECT: COUNTRY: TOTAL COST: Assam Agricultural Development India (The State of Assam) $ 16. 4 rn i 11 i on • IDA FINANCING: $8 million, on standard IDA terms OTHER FINANCING: Government of Assam (GOA), $8.4 million IMPLEMENTLNG ORGANIZATION: Overall responsibility wi 11 be with the Agricultural Production Commissioner of Assam, Gauhati 781006, Assam, India PROJECT DESCRIPTION: The five-year project comprises: completion of the reorganiza- tion of the agricultural extension service by June 30, 1980, and strengthening this service through additional staff, training, housing, offices, equipment and transport; development and strengthening of adaptive research by: establJ.iii- ing nine field trial stations by the Department of Agriculture and upgrading two .., com1TOdity-oriented research stations and one substation of the Assam Agricultural University, through provision of staff, training~ laboratory facilities, housing, hostel accommodation, equipment and vehicles; strengthening of the Irrigation Department through the provision of staff and staff training, vehicles and equipment to enable it to super- vise Assam's shallow tubewell installation program and carry out groundwater surveys and monitor.ing, research, design, installation and field testing of alternative types of shal 1°"' tube~·Jells and pumping techniques; establishment of project monitoring and evalua- tion faci Ii ties by providing staff and equipment. PROCUREMENT: Contracts for civi 1 works ($5. l million) wi 11 be awarded on the basis of local competitive bidding under procedures which are satisfactory to the Associa- tion. Civil works contracts will be smal 1 and dispersed, both geographically and over time, and wi 11 not be suitable for international competitive bidding. About 135 rrotor vehicles of various types ($1.0 million) wi 11 be required under the project. They wi 11 be purchased in smal 1 quantities over four years. To ensure adequate maintenance and spares, they will be procured by local competitive bidding. Since leading manufacturers of scientific equipment are represented in India and can offer local maintenance service, GOA's established local procurement procedures will be employed. CONSULTANTS: About 12 man-months of local consultancy services are provided for under the project. ECONOMIC RATE OF RETURN: at least 50% EST IMATED COMP LET I ON DATE: 1982 • - 0 -