Government of India and ADB Sign $375 Million Loan to Improve Irrigation Efficiency in Madhya Pradesh

Government of India and the Asian Development Bank (ADB) signed a $375 million loan agreement to contribute to double farming incomes in Madhya Pradesh by expanding irrigation networks and system efficiency.

The Madhya Pradesh Irrigation Efficiency Improvement Project will develop 125,000 hectares of new, highly efficient and climate resilient irrigation networks and improve water use efficiency in more than 400 villages, benefiting over 800,000 people in Madhya Pradesh.

Shri Sameer Kumar Khare, Joint Secretary (Fund Bank and ADB), Department of Economic Affairs, Ministry of Finance, signed the loan agreement for the Government of India, and Shri Sabyasachi Mitra, Deputy Country Director of ADB’s India Resident Mission, signed on behalf of ADB. A separate project agreement was signed by Shri A.K. Upmanyu, Project Director on behalf of the State of Madhya Pradesh.

 “The Project will support the efforts of Government of Madhya Pradesh for irrigation expansion and modernization plan by maximizing irrigation efficiency and water productivity,” said Shri Khare.

 “The ADB funds will be used to develop a large-scale pressurized and automated irrigation system for boosting irrigation efficiency,” said Shri Mitra. “The Project will support institutional innovations through introduction of a design-build-operate contracting approach.”

The project will focus on two large irrigation systems. At the first of these-the Kundalia irrigation project-it will develop 125,000 ha of new and highly efficient and climate resilient irrigation networks. The work to 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. The project will also help farmers to adopt micro-irrigated agriculture including high-value crops.

For the second large irrigation system, the existing Sanjay Sarovar Irrigation Project, the project will prepare a comprehensive modernization feasibility study and other preparatory work for a soundly designed project.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 67 members-48 from the region. In 2017, ADB operations totaled $32.2 billion, including $11.9 billion in co financing.