Announcement of IDA Assists Seed and Fisheries Development in India on June 1, 1978

~ . F_OR IMMEDIATE RELEASE •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 78/81 JUNE 1, 1978 IDA ASSISTS SEED AND FISHERIES DEVELOPMENT IN INDIA The International Development Association (IDA), an affiliate of the World Bank, today announced the approval of two credits totaling $33.5 million to 'help finance two priority development projects in India. An IDA credit of $16 mill ion will assist India launch the second phase of a national seed program to increase the availability cf h:gh qua1 ity seeds. At full development, the project will help increase production of foodgrains and other crops valued at $158 million a year. Some seven mil- lion people are expected to benefit from the project . • A credit of $17.5 million will support a project designed to increase shrimp and fish prndu(..tion and incomes of fishermen in Andhra Pradesh State. Both IDA credits to India are for 50 years, including 10 years of grace. They are interest free, except for a service charge of 3/4 of 1% per annum to meet IDA's administrative costs. The Food and Agriculture Organization of the United Nations joined the Bank in preparing these pro- jects under the FAO/IBRD Cooperative Program. $16 Million Credit for a National Seed Project The main purpose of the $34.9 million project is to increase foodgrain production through increased supply of high quality cereal seed. • NOTE: Money figures are expressed in U.S. dollar equivalents.  - 2 - The project is the second phase of India's seed industry development program and will cover five states--Bihar, Karnataka, Ortssa, Rajasthan and Uttar Pradesh. The first phase covering four states--Andhra Pradesh, Haryana, Maharashtra and Punjab--is being implemented with the assistance • of a World Bank Joan of $25 mill ion approved in 1976. The design of India's National Seeds Program reflects the experience of the Tarai Seeds Project successfully completed with World Bank assistance. The project being assisted by the IDA credit includes the establishment of a seed corporation in each state; assistance to state agricultural universities for seed technology research, and seed produc- tion and processing; farm development, quality control; and training and technical assistance. The main benefit from the project will be increased crop yields resulting from increased supp~, of bettei quality seed. At full development, the annual increase in the production of foodgrains and other crops will be 945,000 tons valued at $158 million. The project will provide adequate seed for 2.7 mill ion hectares. About 13,500 man-years of seasonal employment will be created for harvesting the additional crop production. $17.5 Mill ion Credit for Andhra Pradesh Fisheries Project • The $36.5 million project will help to improve and expand existing harbor and shore facilities at Vishakapatnam, Kakinada and Nizampatnam, expand the mechanized fishing vessel fleet, and provide village access roads and water supply to help traditional fishermen in three leading fishing districts in Andhra Pradesh and provide credit for seafood processing facilities at Vishakapatnam and Nizarnpatnam. At full development, the project investments are expected to yield annual incremental landings of about 36,000 tons of fish and shrimp valued at $29.4 mi 11 ion. - 0 - • FORM NO. 1121 (5-76) T ECHN I CAL DAT A • PROJECT: COUNTRY: TOTAL COST: Second National Seed India $34.9 million IDA FINANCING: $16 million, standard IDA terms OTHER FINANCING: (1) Government of India (2) State Governments (3) ARDC/Participating Banks (4) Seed Growers. IMPLEMENTING ORGANIZATION: Ministry of Agriculture Government of India New Delhi lndla. PROJECT DESCRIPT,ON: The project includes the establishment and equipping • of State Seed Corporations in Bihar, Karnataka, Orissa, Rajasthan and Uttar Pradesh; assistance to state agricultural universities for breeder and foundation seed production and processing, and seed technology re- search; seed testing laboratories; seed certification agencies; development of farms; and technical assistance and training. PROCUREMENT: Major items of seed pr~cessing machinery, laboratory equipment, farm machinery and office equipment ($12. 1 million) will be procured through International competitive bidding. Local manufacturers will receive a margin of preference of 15% or prevailing customs duty, whichever is lower . • ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 158% 1983 - 0 - FOAM NO. 1121 (5-76) T EC HN I CAL DA TA PROJECT: COUNTRY: TOTAL COST: Andhra Pradesh Fisheries India $36.5 mI 11 ion • IDA FINANCING: $17 . 5 mi 11 ion on standard IDA terms OTHER FINANCING: (i) Government of India/Government of Andhra Pradesh (2) Agricultural Refinance and Development Corporation (3) Participating banks and fishermen IMPLEMENTING ORGANIZATION: Fisheries Department Government of Andhra Pradesh Hyderabad, AP India. PROJECT DESCRIPTION: The project provides for (i) improvement of three fishing harbors - Vishakapatnam, Kakinada, and Nizampatnam; (ii) construction of access roads in three districts as well as pro- vision of water supply in Nizampatnam; (iii) credit for seafood processing facilities and the purchase of 360 mechanized fishing vessels and 60 non-motorized vessels; and • (iv) technical assistance. PROCUREMENT: Except for minor contracts for ancillary facilities and dredging work, contracts for civil works at Vishakapatnam ($6.5 million) and Kakinada ($6.2 million) will be awarded through international competitive bidding. Harbor works at Nizampatnam will be small ($800,000) and may not attract foreign firms. Domestic contractors will receive a preference of 7.5%. CONSULTANTS: Technical assistance under the project lncludes an estuarial river training specialist for three man-months, and a naval architect for six man-months . ECONOMIC RATE.OF RETURN: ESTIMATED COMPLETION DATE: 35% 1984 - 0 - •