World Bank offers loans to Southern states for irrigation
13 Feb 2007
New Delhi: The World Bank has agreed to provide a $485 million loan to Tamil Nadu for restoration of water tank bodies linked to irrigation and is considering similar loans to Andhra Pradesh, Karnataka and Orissa.
The Tamil Nadu Irrigated Agriculture Modernization and Water-Bodies Restoration and Management Project is designed to modernise irrigation systems covering over 600,000 hectares in 63 selected sub-basins throughout the State.
The World Bank is also considering providing $200 million to Andhra Pradesh and $150 million to Karnataka and Orissa, said Praful Patel, World Bank vice president (South Asia Region).
The World Bank may also provide $500 million for a project to revive rural cooperative credit structure in the country.
The Asian Development Bank has already signed a deal with the government to provide $1 billion to the same project.
At January 2007 end, World Bank group had 63 active projects with a net commitment of $12.7 billion.