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India, ADB sign $120 million loan pact for irrigation in Odisha

India, ADB sign $120 million loan pact for irrigation in Odisha
07 June 2016 Current Affairs: India and the Asian Development Bank (ADB) on 6 June 2016 signed a $120 million loan pact to improve irrigation and water management infrastructure in Odisha.

The soft loan is the second tranche of a $157.5 million financing facility under the Orissa Integrated Irrigated Agriculture and Water Management Investment Program.

The financing will be used for modernising seven irrigation subprojects resulting in improved irrigation in over 1,00,000 hectares and strengthening of Water User Associations (WUAs) and the institutional capacity of Odisha's Department of Water Resources.

The selected areas for the investment program are the Baitarani, Brahmani, Budhabalanga and Subernarekha river basins and parts of Mahanadi delta.

Raj Kumar, Joint Secretary in Department of Economic Affairs and M Teresa Kho, Country Director, ADB's India Resident Mission signed the loan agreement.

The second tranche loan from ADB's ordinary capital resources has a 20-year term. Odisha, acting through its Department of Water Resources, is responsible for implementing the second tranche activities and overall program, which are both due for completion by September 2018.


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