The Government of India, Government of Himachal Pradesh have signed a US$80 million loan agreement with the World Bank. The loan agreement aims to enhance water management practices and to improve agricultural productivity in 428 Gram Panchayats of Himachal Pradesh.
About the US$80 million loan agreement:
A US$80 million loan agreement has been signed by Government of India & Government of Himachal Pradesh with the World Bank. The loan amount will be fulfilled by International Bank for Reconstruction and Development (IBRD). According to the agreement, the loan amount has a final maturity of 14.5 years which also includes a grace period of 5 years.
About the Project to be implemented in HP:
The state government of Himachal Pradesh will implement the Integrated Project for Source Sustainability and Climate Resilient Rain-Fed Agriculture. This project will be implemented in 428 Gram Panchayats in 10 districts and will benefit over 4,00,000 smallholder farmers, women and pastoral communities. The project is expected to improve upstream water sources in forests, pastures and grasslands. It will also ensure that sufficient water is available for sustainable agriculture.
As part of the project, hydrological monitoring stations will be set up to monitor the water quality and quantity. Proper monitoring of the water quality and quantity will ensure more holistic Catchment Area Treatment (CAT) plans which are based on source sustainability, carbon sequestration, and water quality. It will also lay the foundation for future water budgeting via better land use and agricultural investments.
Important takeaways for all competitive exams:
- President of World Bank: David Malpass; Headquarter: Washington DC.
- Chief Minister of Himachal Pradesh: Jairam Thakur; Governor: Bandaru Dattatraya.