Announcement of India to Receive Two IDA Credits for Agricultural Extension on May 11, 1981

'fOlt IMMEDIATE REL.EASE eWorldBank 1818 ~-l Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 81/78 May 11 , 1981 INDIA TO RECEIVE TWO IDA CREDITS FOR AGRICULTURAL EXTENSION Agricultural extension and research programs in India's Madhya Pradesh and Tamil Nadu states will be expanded and strengthened with the assistance of two credits of SOR 30.3 million ($37 million) and SOR 22.9 million ($28 million), respectively, the International Development Association (IDA) announctd today. IDA is the World Bank's affiliate for concessionary lending. The IDA credits will finance the introduction of the Training and Visit (T&V) System of agricultural extension to Tamil Nadu, and the expansion of its use in Madhya Pradesh. This system, already in successful use in several other Indian states, is based on in-service training of extension workers, and regular scheduled visits by extension workers to farm plots. The use of the T&V system is expected to increase agricultural production • in Tamil Nadu and Madhya Pradesh, and help raise incomes and the standard of living of the participating farm families. Proceeds from the IDA credits will be used by the Governments of Tami 1 Nadu and Madhya Pradesh to finance additional staff, vehicles, housing and offices for extension workers, incremental operating costs, and training. The state governments will manage the projects, which are to be implemented over a five-year period. The IDA credits are for 50 years, including 10 years of grace. They bear no interest, but carry a service charge of 3/4 of 1% per annum to cover IDA's administrative expenses. NOTE: IDA credits are denominated in SDRs (Special Drawing Rights) which are valued on the basis of a 11 basket 11 of currencies. The U.S. dollar equivalent of the SDR amount of the IDA credit refle~ts the exchange rates existing at the time of ·negotiation of the credit . • FORM NO. 1121 (5-76) T E CHN I CA L DA T A PROJECT: COUNTRY: TOTAL COST: Tamil Nadu Agricultural Extension India $45. 6 mi 11 ion • IDA FINANCING: SOR 22.9 million ($28 million), standard IDA terms OTHER FINANCING: Government of India/Government of Tamil Nadu IMPLEMENTING ORGANIZATION: Government of Tamil Nadu Agriculture Department Ft. St. George Madras, I ND IA PROJECT DESCRIPTION: The project wi 11 reorganize and strengthen agricultural extension services in the State of Tamil Nadu along the lines of the Training and Visit System of agricultural extension, which is based on frequent in-service training of extension workers and • regular scheduled visits by extension workers to farme·rs' fields. Additional staff, vehicles, housing, operating funds and training will be provided over a five-year period. PROCUREMENT: All civil works and vehicles will be procured locally. ECONOMIC RATE OF RETURN: 50% ESTIMATED COMPLETION DATE: 1987 - 0 - • FORM NO.1121 (5-76) T E C HN I CA L DAT A • PROJECT: COUNTRY: TOTAL COST: Madhya Pradesh Agricultural Extension-Phase I I India $60 mi 11 ion IDA FINANCING: SOR 30.3 million ($37 million), standard IDA terms OTHER FINANCING: Government of India/Government of Madhya Pradesh IMPLEMENTING ORGANIZATION: Government of Madhya Pradesh Agriculture Department Vallabh Bhawan Bhopal, Madhya Pradesh !NOIA PROJECT DESCRIPTION: The project will reorganize and strengthen agricultural extension services in thirty districts of Madhya Pradesh • along the lines of the Training and Visit System of extension, which is based on frequent in-service training of extension workers and regular scheduled visits by extension workers to farmers' fields. Additional staff, vehicles, housing, operating funds and training will be provided over a five-year period. PROCUREMENT: All civil works, vehicles, and equipment will be procured locally. ECONOMIC RATE OF RETURN: 50% ESTIMATED COMPLETION DATE: 1987 - 0 - •