Union Government, ADB sign USD 375 million loan agreement to improve irrigation efficiency in Madhya Pradesh

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

The loan agreement was signed by Sameer Kumar Khare, Joint Secretary (Fund Bank and ADB), in the Department of Economic Affairs, Union Ministry of Finance, and Sabyasachi Mitra, Deputy Country Director of ADB’s India Resident Mission.

A separate project agreement was signed by A.K. Upmanyu, Project Director of Madhya Pradesh.

The 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.

Madhya Pradesh Irrigation Efficiency Improvement Project

• The Madhya Pradesh Irrigation Efficiency Improvement Project will support the efforts of the state for irrigation expansion and modernisation plan by maximizing irrigation efficiency and water productivity.

• The Project will support institutional innovations through introduction of a design-build-operate contracting approach.

• It will improve water use efficiency in more than 400 villages, benefiting over 800000 people in Madhya Pradesh.

• It will focus on two large irrigation systems – the Kundalia irrigation project and the Sanjay Sarovar Irrigation Project.

• The Kundalia irrigation project will develop 125000 hectares of new and highly efficient and climate resilient irrigation networks. It will include building two large pumping stations pumping water to distribution chambers. The project will help farmers to adopt micro-irrigated agriculture.

• The existing Sanjay Sarovar Irrigation Project will prepare a comprehensive modernisation feasibility study and other preparatory work for a soundly designed project.


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