Indian Govt., World Bank sign agreement for watershed project in Uttarakhand

Last Updated: Mon, Mar 21, 2011 15:50 hrs

The Government of India and the World Bank signed agreements amounting to IDA credit of 7.98 million dollars additional finance for the Uttarakhand Decentralized Watershed Development Project which will support the ongoing watershed development Project in Uttarakhand.

The agreement was signed by Venu Rajamony, Joint Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India,i M. H. Khan, Secretary, Watershed on behalf of the Uttarakhand Government and Roberto Zagha, Country Director India, on behalf of the World Bank.

The additional funding of 7.98 million dollars for the Uttarakhand Decentralized Watershed Development Project will sustain support for ongoing activities like helping farmers set up small agribusinesses.

These are critical to achieving the planned 10 per cent increase in rural incomes in project areas by the end of the implementation period. The need for additional funds was brought about largely by increases in prices of goods and services since the Project began in 2004.

Speaking on the occasion, Rajamony said that if current trends are maintained, the targeted 10 percent increase in the household income by end of the Project is likely to be realized for the project.

"The additional financing will help support critical agribusiness activities and further boost rural incomes," he added.

The credit is provided by the World Bank's fund for the poorest, the International Development Association (IDA), and has 35 years to maturity and a 10-year grace period.

Uttarakhand is currently implementing 2 State projects together amounting to 203 million dollars. This constitutes around one per cent of the total net commitments in India. (ANI)