Announcement of International Development Association Approves Thirty-Three Million US Dollars Credit to Assist India in Social Forestry Project on August 5, 1982

FOR IMMEDIATE REtEASE •,World Bank 1.818 H Street, N.W., Washington, O.C. 20433, U.S.A.• Telephon,e: (202) )477-1234 IDA NEWS RELEASE NO. 83/8 CONT,:\CT: Hugh Blackman August 5, 1982 ( 2G2) 477-3879 INTERNATIONAL DEVELOPMENT ASOCIATION APPROVES $33 MILLION CREDIT TO ASSIST INDIA IN SOCIAL, FORESTRY PROJECT The International bevelopment Association (IDA) has approved a credit of SDR 29.4 million ($33 million) for a project to help increase the supply of fuelwood and improve environmental conditions in two Indian states. The $67 .1 million project will establish 111,000 hectares of tree plantations on private and public wastelands thrmi'ghout the two northern states of Jammu and Kashmir, and Haryana which have a combined population of about 19 mf 1llion. Most of the people live in rural areas and depend on fuelwood and dung for almost all their energy needs. Existing plantations are not able to provide an adequate fuelwood supply. About 35% of state forests in both states is practically tree-less because population pressures and. increasing numbers of livestock have resulted in erosion and indiscriminate cutting of trees. The plantation~ under the project will bring idle or under-utilized lands into productive use. These plantations will be carried out in • village woodlots and on private farms, wastelands along roads, canals, and railways, wetlands, alkaline/ saline lands, as well as in degraded fores ts. The project should result in an increase in the supply of fuelwood sufficient to meet the needs of about 450,000 people. The plantations will also provide small timber, bamboo, poles, fodder, fruit, oilseeds, and other forest products, thus generating employment and a marketable surplus. The project'& environme:ntal impact will be felt as the soil is conserved, hills and sand dunes are stabilized, and soil fe!tility is restored. The planting programs will be supplemented by public information and education efforts. The Social Forestry Wings in the Forest Departments a.nd the social forestry training schools of both states will be strengthened. Research\activities and testing of seeds will be increased to meet the n~eds of an expanded social forestry program. Wood-balance studies will gather vital irlformation for the first time on the consumption and availability of fuelwood and forest-based products in the rural and urban areas of the two states. This is the fourth social forestry project to be carried out by the World Bank in India. Similar projects are being implemented in Uttar Pradesh, Gujarat, and West Bengal. The Government of India and the states of Jammu and Kashmir, and Haryana are providing the project with $34.1 million. The IDA credit is for 50 years, including 10 years of grace; it carries no interest but bears a small annual service charge of O. 5% on the undisbursed balance of the credit, and 0.75% on the disbursed balance. The •• credit will be committed when funds are available • NOTE: IDA credits are denominated·' in SDRS (Special Drawing Rights), which a,re 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.