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Jul 15, 2016

[CA] ADB gives $100 million to Tamil Nadu

ADB gives $100 million to Tamil Nadu

The Government of India and the Asian Development Bank (ADB) have signed a $100 million (Rs. 670 crore) loan agreement to strengthen key irrigation and drainage system and improve water management in the Vennar sub-basin of the Cauvery delta in Tamil Nadu.

Details:
·       The financing will be used to strengthen embankments of six major irrigation water channels in the Vennar system and rehabilitate 13 irrigation pumping schemes.
·       The project aims to improve existing infrastructure and will provide flood protection and renewed access to irrigation.
·       The loan will support Tamil Nadu’s water resources professionals to manage resources better, and with greater involvement of the stakeholders they service.
·       Communities will be involved in planning and delivery of water services. Flood forecasting and warning systems will be installed and a flood risks map drawn up to help communities respond more effectively to extreme events.
·       The ADB officials signed a financing agreement with the Government of India and also signed a separate project agreement with officials of the Tamil Nadu government in New Delhi (on Jul 14, 2016). The total project cost is estimated at $144 million, with the State government pooling in $44 million.
·       Tamil Nadu’s Water Resources Department will be responsible for implementing the project which is expected to be completed in 2020. The Tamil Nadu government had sought financing from ADB to upgrade the irrigation systems in the region.
·       The project will run through six rivers in the districts of Thanjavur and Nagapattinam and involves resectioning of Pandavayar, Velleiyar, Harichandranadi, Adappar, Valvanar and Vedaranyam Canal and desilting of riverbeds as well.
·       The project seeks to protect coastal districts from cyclones and flooding that are aggravated by climate change, have a climate-resilient water management system, better flood risk management and improved irrigation infrastructure.
·       Nearly 11,000 hectares and over 3.35 lakh households will face a reduced risk of flooding over the next 25 years once the project is implemented, as per the bank’s initial environmental examination that was completed in December 2015. A distribution and poverty analysis done by the bank estimated the bulk of the net benefits of the upgraded systems will go to the small farmers (58%) and marginal farmers (42%). While no land acquisition is required for the project, nearly 12,887 persons will have to be resettled.


Background:

The Cauvery river basin is a critical source of water for agriculture, both within Tamil Nadu and neighbouring states. The vast majority of the delta’s population is engaged in farming and fishing.

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