ADB to provide US $375 million loan for Madhya Pradesh Irrigation Efficiency Improvement Project

Union Government has signed $375 million loan agreement with Asian Development Bank (ADB) for Madhya Pradesh Irrigation Efficiency Improvement Project. The project will contribute to double farming incomes in Madhya Pradesh by expanding irrigation networks and system efficiency.

Madhya Pradesh Irrigation Efficiency Improvement Project

It will develop 125,000 hectares of new, highly efficient and climate resilient irrigation networks. It will also improve water use efficiency in more than 400 villages and benefit over 800,000 people in the state. It will also support institutional innovations through introduction of design-build-operate contracting approach. It will also help farmers to adopt micro-irrigated agriculture including high-value crops. The ADB funds will be used to develop a large-scale pressurized and automated irrigation system for boosting irrigation efficiency.
It focuses on two large irrigation systems

• Kundalia irrigation project: It will develop 125,000 ha of new and highly efficient and climate resilient irrigation networks. The work that will be undertaken includes building two large pumping stations pumping water to distribution chambers where water will be distributed through a network of buried pipes to farm outlets.
• Sanjay Sarovar Irrigation Project: Under it comprehensive modernization feasibility study will be prepared and other preparatory work for soundly designed project.

Asian Development Bank (ADB)

ADB is a regional development bank based out of Asia. It aims to promote social and economic development in Asia by achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.
It was established in December 1966. It is headquartered at Ortigas Centre in Manila, Philippines. ADB’s main objective is to assist its members and partners, by providing loans, technical assistance, grants, and equity investments to promote social and economic development.
It has total 67 members, of which 48 are from within Asia and the Pacific and 19 outside. ADB has been modelled closely on the lines World Bank. It has similar weighted voting system where votes are distributed in proportion with members’ capital subscriptions.

Month: Current Affairs - August, 2018