Union Government inks loan agreement with World Bank for Neeranchal National Watershed Project

Union Government has signed a loan agreement with World Bank for the Neeranchal National Watershed Project to improve watershed management in rural rain fed areas.
The loan credit will support the watershed activities of the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) in selected sites in 9 states. These states are Andhra Pradesh, Chhattisgarh, Telangana, Jharkhand, Gujarat, Maharashtra, Madhya Pradesh, Odisha and Rajasthan.
Key facts

• World Bank will provide loan of US$ 178.50 million with a maturity of 25 years, including a 5 year grace period.
• The loan has been sanctioned by the World Bank’s concessionary lending arm International Development Association (IDA).
• It will give impetus to longstanding partnership between the World Bank and Union Government in the watershed management.

About Neeranchal National Watershed Project

• The project is implemented by the Union Ministry of Rural Development over a six-year period (2016-21) to achieve objectives PMKSY.
• It will support the PMKSY in hydrology and water management, agricultural production systems, capacity building and monitoring and evaluation.
• It seeks to ensure access to irrigation to every farmland (Har Khet Ko Pani) and for efficient use of water (Per Drop More Crop).
• The project was approved by the Union Cabinet in October 2015 with a total budget outlay of Rs.2142 crore. Of the total amount Government’s share was of Rs.1071 crore (50%) and the rest 50% of the World Bank.

Month: Current Affairs - January, 2016