Contacts: In Washington: Erik Nora (202) 458 4735 enora@worldbank.org In Delhi: Kiran Negi, (91 11) 24617241 x 363 knegi@worldbank.org WASHINGTON, January 23, 2007 ─ The World Bank today approved an assistance package of US$485 million to the Indian state of Tamil Nadu to increase agriculture productivity by modernizing the state’s irrigation infrastructure. The Tamil Nadu Irrigated Agriculture Modernization and Water-Bodies Restoration and Management Project is designed to modernize irrigation systems covering over 600,000 hectares in 63 selected sub-basins throughout the State. It proposes an integrated sub-basin approach to synergize the activities of multiple agencies involved with irrigation, on-farm development, agriculture, horticulture, marketing, livestock, fisheries, and applied research. Tamil Nadu is home to about 62 million people living in 17 river basins. Many of these basins are water stressed, as supplies are limited and increasingly polluted, and competing demands are growing. The majority of the population is rural and dependent on agriculture. The agricultural sector faces major constraints due to poor state of irrigation infrastructure, water scarcity, groundwater overdraft, and pollution of surface and ground waters. About 20-30 percent of the rural population is classified poor and is heavily dependent on agricultural wages. “Improved performance in agriculture and related areas can be the key to unlocking the tremendous potential of Tamil Nadu’s rural areas,” said Fayez Omar, Senior Manager, India Program and Acting World Bank Country Director for India. “This project will help improve productivity of water in irrigated agriculture and promote diversification into higher-value, less-water intensive crops.” The project will place special focus on modernization of Tanks (traditional water bodies that are integrated into the state’s irrigation systems) supported by a Government of India initiative. The Water Resources Organization and Water User Associations would be strengthened to improve irrigation service delivery. In addition, the project aims to strengthen the institutional framework and tools for sustainable water resources management. Work will also be initiated on improving the management of the Cooum sub-basin that demonstrates unique urban-rural linkages and resource and water quality challenges. “An appropriate combination of modern tools and techniques, synergizing the work of various agencies and partners, as well as empowerment of farmers would yield improved farmer incomes and products to fuel economic growth and alleviate rural poverty,” said Srinivasan Raj Rajagopal, World Bank Lead Water Resources Specialist and project task team leader. “Creation of employment opportunities in on- and off-farm activities would further reduce rural poverty. It is time for irrigated agriculture and water resources management to catch up with other modernization efforts in the State and this project would assist in this process in an innovative manner.” Rajagopal said participation and ownership of farmers and their organizations is critical for sustainable irrigation and agricultural intensification and diversification. “In this project, participatory planning, design, implementation, and monitoring have been built in to instill a sense of ownership, improve transparency and reduce conflicts.” The US$335 million loan is from the International Bank for Reconstruction and Development (IBRD) and has 20 years to maturity including 5-years of grace period. The US$150 million credit is provided by the International Development Association (IDA), the World Bank’s concessionary lending arm and has 35 years to maturity and a 10-year grace period. ### For more information on the Bank’s work in India, visit http://www.worldbank.org.in For more project information, please visit the project web site. |
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