A loan agreement has been signed in this regard by ADB and the Government of India.
It is the second tranche of a $157.5m financing facility under the Orissa Integrated Irrigated Agriculture and Water Management Investment Program.
The financing will be utilized to modernize seven irrigation subprojects leading to enhanced irrigation in more than 100,000ha, and strengthening of Water User Associations (WUAs) and the institutional capacity of the state’s Department of Water Resources.
Baitarani, Brahmani, Budhabalanga, and Subernarekha river basins and part of the Mahanadi delta are the selected areas for the investment program.
India’s Ministry of Finance Joint Secretary (Multilateral Institutions), Department of Economic Affairs Raj Kumar said: "Agriculture is a priority sector for India and especially for Odisha because of its high potential to generate jobs and contribute to inclusive and sustainable economic growth.
"The project aims to improve deteriorated irrigation infrastructure, operation and maintenance, and water use efficiency that will lead to higher agricultural productivity."
ADB’s India Resident Mission country director Teresa Kho said: "The investment program has already demonstrated the value of participatory irrigation management and will continue to support the WUAs to manage the planning, construction, and operation and maintenance of irrigation systems as an equal partner of the government."
This second tranche of loan comes from ADB’s ordinary capital resources with a term of 20 years.
The state of Odisha, working through its Department of Water Resources will implement the tranche 2 activities and overall program.
Image: ADB offers $120m loan to improve irrigation projects in Odisha India. Photo: Courtesy of Asian Development Bank.
