The Hindu : Other States / Chattisgarh News : Chhattisgarh to get ADB loan for better farm facilities

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Thursday, Mar 31, 2005

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Chhattisgarh to get ADB loan for better farm facilities

By Our Special Correspondent

NEW DELHI, MARCH 30. The Asian Development Bank (ADB) has approved a US$ 46.1-million loan to revamp the irrigation services and agricultural practices in Chhattisgarh, which will help in improving the livelihoods of about 1.20 lakh farm families in the State.

The project, according to an ADB statement here, will help the Chhattisgarh Government's water resources department (WRD) to develop and manage the State's irrigation sector better, by strengthening its existing capacity, initiating reforms, upgrading procedures, modernising equipment and developing new facilities.

It will also redefine and bolster the role of water users associations (WUAs) in managing and maintaining irrigation systems by strengthening the framework for partnership between them and the WRD. The project will then rehabilitate and upgrade about 200 minor and 20 medium irrigation schemes, especially those with high potential for diversified cropping, serving about 200,000 hectares throughout the State, in a process that will fully involve the participation of WUAs.

"An integrated approach is needed to increase productivity and maximise the impacts of irrigated agriculture on rural growth and poverty," said Thomas Panella, an ADB Water Resources Specialist, commenting on the loan approval.

Agricultural support services will be also be provided for systems that have been rehabilitated and upgraded.

The project will assist WUAs in preparing on-farm water management plans, developing diversified cropping for the dry season and drawing up marketing plans.

Despite abundant land and water resources, rural poverty in Chhattisgarh is widespread due largely to low farm productivity. Only wet season rice is grown in most areas, although diversified cropping provides a high-value opportunity to improve the livelihood of many farmers with irrigation.

The irrigation system performance is low, however, mainly due to inadequate operation and maintenance, which stems in large part from a lack of involvement of the water users.

ADB's strategy for India recognises the importance of expanding agriculture and rural development in reducing poverty. The Chhattisgarh project is an important intervention since it is ADB's first loan in the rural sector, and provides an excellent example of the benefits that can be created through its assistance, the statement said.

A $1.9-million technical assistance grant from the British Government accompanies the loan to support capacity development activities for WUAs, project monitoring and evaluation.

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