Announcement of IDA to Assist Agricultural Extension in India on May 11, 1981

FOR iMMEDIATE RELEASE •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 81/77 May 11 , 1981 IDA TO ASSIST AGRICULTURAL EXTENSION IN INDIA Some 5.8 million farm families in India's Maharashtra state wi 11 be served by a reformed agricultural extension system to be assisted by a credit of SDR 18.9 million ($23 million), the International Development Association (IDA) announced t9day. IDA is the World Bank's soft-loan affiliate. The improved agricultural extension system is expected to help increase crop production and farm incomes. The project wi 11 introduce the Training and Visit System (T&V System) of agricultural extension in Maharashtra state. This system is based on frequent in-service training of extension workers and regular scheduled visits by extension workers to farm plots. In this way, farmers become acquainted with • the results of research on new agricultural methods . The T&V System is already in various stages of implementation in several Indian states -- West Bengal, Orissa, Assam, Bihar, Madhya Pradesh, Guj~rat, Haryana, Karnataka, Kerala, and Rajasthan. In areas where the reformed system of extension services is in full operation, field results have been very encouraging, both in terms of acceptance of new farm techniques and of increased crop yields. The project in Maharashtra state wi 11 use the proceeds from the IDA credit to finance additional staff, vehicles and equipment, housing for extension workers a.nd training. The Government of Maharashtra's Department of Agriculture wi 11 manag:~ the project, which is to be implemented over a five-year period. Th~ IDA ~r~dit is for 50 years, includi~g a 10-year grace period. It is interest-free, except for a service charge of 3/4 of 1% per annum to cover the Association's administrative costs. NOTE: IDA credits are denominated in SOR~ (Special Drawing Rights), which are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SDR amount of the IDA credit reflects the exchange rates existing at the time of negotiation of the credit . • FORM NO, 1121 (5-76) T E CH N I CA L ·DA T A PROJECT:· COUNTRY: TOTAL COST: Maharashtra Agricultural Extensiop India $38.2 million • IDA FINANCING: SOR 18.9 million ($23 million), standard IDA terms OTHER FINANCING: Government of Maharashtra/Government of India IMPLEMENTING ORGANIZATION: Department of Agriculture State of Maharashtra Mantralaya Bombay, India PROJECT DESCRIPTION: The project will reorganize and strengthen agricultural extension services in Maharashtra along the lines of the Training and Visit System of extension, which is based on in-service training of extension workers and regular visits by extension workers to farmers' fields. Additional staff, vehi~les, housing, operating funds and training to achieve this • goal wi 11 be provided under the project over a five-year period. PROCUREMENT: Civil works contracts wi 11, because of their dispersed nature, be awarded on the basis of competitive bidding following local advertisement. Motor vehicles will be procured locally under existing government procedures. Purchases of minor equipment and furniture will be grouped wherever possible and procured through local bidding. CONSULTANTS: None ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 50% 1986 - 0 - •