The Asian Development Bank (ADB) has signed an agreement with India to invest $120 million for the improvement of irrigation infrastructure and water management schemes in Odisha. The 20-year term loan is the second portion of a $157.5 million financing facility under the Orissa Integrated Irrigated Agriculture and Water Management Investment Program, which is scheduled to be completed by September 2018.
The funding will be used to improve and modernize seven irrigation sub-projects encompassing more than 100,000 hectares of farmland in Baitarani, Brahmani, Budhabalanga, and Subernarekha river basins and part of the Mahanadi delta, while also reinforcing Water User Associations (WUAs) and the capacity of Odisha’s Department of Water Resources.
“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,” said Shri Raj Kumar at the signing of the agreement. “The project aims to improve existing irrigation infrastructure, operation and maintenance, and water use efficiency that will lead to higher agricultural productivity.”
Odisha is a major region of agricultural production for India with 40% of the state’s total geographical area cultivated for crop production. The state is the top rice producing region in India and other main crops grown in the state include oilseeds, pulse, coconut, tea, cotton, maize, sesame, potatoes, and sugarcane. Although the state boasts a favorable climate and fertile soil, an ongoing challenge to the sector has been the availability of water and lack of irrigation.
In a press statement, India’s Ministry of Finance reports that Ms. M. Teresa Kho, Country Director, ADB’s India Resident Mission expressed that “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.”
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Lynda Kiernan