World Bank Loan for Odisha State Capability and Resilient Growth Program

April 4, 2023

Odisha, a state located on the east coast of India, is particularly vulnerable to natural disasters, with cyclones hitting the state every 15 months on average and a coastline of 480 km exposed to tsunami risk. In response to these risks, the World Bank has announced a $100 million loan for the state under the Odisha State Capability and Resilient Growth Program (OSCRGP) to help minimize losses that came as the result of natural disasters and boost social protection coverage for vulnerable households through digital platforms.

Strengthening early forecasting systems and improving resilience planning

The OSCRGP program aims to reduce losses caused by natural disasters through a multi-hazard digital warning system and strengthening the state’s data collection efforts for better resilience planning. By investing in early forecasting systems, the program aims to improve the state’s ability to respond to natural disasters and reduce the loss of life and property.

Programme-for-Results financing instrument with a maturity of 12.5 years

The loan is being provided through a Programme-for-Results (PforR) financing instrument, with a maturity of 12.5 years and a grace period of three years. This financing instrument aligns with the World Bank’s priorities of supporting sustainable and inclusive development, and ensuring that the results are delivered on time and within budget.

Enhancing social protection coverage through cash transfer programs

The loan also seeks to enhance social protection coverage to marginalized households via digital platforms. With nearly one in three persons in Odisha living in poverty, the loan aims to increase social protection coverage through a cash transfer program. The cash transfer program will utilize online delivery platforms called Mo Sewa Kendras to assist coastal and underserved communities.

Addressing poverty, infant mortality and stunting rates

The loan will also focus on addressing poverty, infant mortality, and stunting rates in Odisha. With Scheduled Tribes (STs) having a poverty rate of 63%, the loan will help ensure that the benefits of the program reach these vulnerable communities. The infant mortality rate in Odisha is among the highest in the country, and stunting rates are below the national average but high for the bottom 40% of households. The loan aims to address these issues through a comprehensive approach to social protection and disaster resilience.

Fragmented beneficiary registers and poor linkages

Currently, Odisha’s cash-transfer programs are ineffective due to fragmented beneficiary registers and poor linkages between beneficiary identification systems. This results in the duplication of administrative roles and costs. The loan aims to address these issues by streamlining beneficiary identification systems and improving linkages between different systems.

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