State to take ADB loan for Rs. 1,377-cr. irrigation project

With the State facing frequent droughts, the government is set to implement a Rs. 1,377-crore mega irrigation project. It will borrow Rs. 918 crore ($150 million) from the Asian Development Bank (ADB) and the remaining amount of Rs. 459 crore ($75 million) will be the State’s share. The loan repayment period is 30 years and the interest is 0.75 per cent. The project — Karnataka Integrated and Sustainable Water Resources Management Investment Programme — will be implemented during 2014–2021, according to officials of the Karnataka Neeravari Nigam Ltd (KNNL). The two-phase project will help KNNL staff roll out river basin management plans. In the first phase, Gondi irrigation system (Shimoga district) will be modernised. In the second phase, work will be taken up on the Vijaynagara canal and the Tungabhadra Left Bank Canal. The project is aimed at increasing water use efficiency, reducing the gap between the actual and potential area that can be irrigated, and promoting water efficient techniques and technologies. Currently, irrigated farmland (around 3.09 million hectares) suck up over 84 per cent of the State’s total water, but agriculture only contributes 16 per cent to the State’s GDP. Agriculture remains the main source of employment (55 per cent). At present, poor infrastructure and lack of water-saving technologies in canals result in substantial waste. Major drawbacks are insufficient maintenance and lack of water control structures, management constraints (low service quality of operators), and limited promotion of water saving crops and practices. The ADB would provide funds in two tranches with the first amount being $31 million. The project report said that after improving irrigation efficiency, saved water will be used to irrigate an additional 1.6 lakh hectares. Annual farm incomes are projected to rise by as much as 50 per cent for some marginal households as a result of increased crop production, and about 1.5 million people can benefit overall. -The Hindu