India & ADB signed $375 million loan agreement to improve irrigation efficiency in MP

India & ADB signed USD 375 million loan agreement to improve irrigation efficiency in Madhya Pradesh: Details, Aim, Purpose, Highlights

The Government of India and the Asian Development Bank (ADB) on 30th August 2018, signed a USD 375 million loan agreement for ‘Madhya Pradesh Irrigation Efficiency Improvement Project’.

The loan agreement is aimed at contributing to double farming incomes in the state by expanding irrigation networks and system efficiency. The ADB funds will be used to develop a large-scale pressurised and automated irrigation system for boosting irrigation efficiency.

About Madhya Pradesh Irrigation Efficiency Improvement Project

Madhya Pradesh Irrigation Efficiency Improvement project will develop 125,000 hectares of new, highly efficient and climate resilient irrigation networks. It will also improve water use efficiency in more than 400 villages and benefit over 800,000 people in the state.

Madhya Pradesh Irrigation Efficiency Improvement project will also support institutional innovations through the introduction of the design-build-operate contracting approach.

Madhya Pradesh Irrigation Efficiency Improvement project will also help farmers to adopt micro-irrigated agriculture including high-value crops. The ADB funds will be used to develop a large-scale pressurized and automated irrigation system for boosting irrigation efficiency.

It focuses on two large irrigation systems

Kundalia irrigation project: It will develop 125,000 ha of new and highly efficient and climate resilient irrigation networks. The work that will be undertaken includes building two large pumping stations pumping water to distribution chambers where water will be distributed through a network of buried pipes to farm outlets.

Sanjay Sarovar Irrigation Project: Under it, comprehensive modernization feasibility study will be prepared and other preparatory work for a soundly designed project.