India signs US$100M for Rajasthan water project
State Govt to rehabilitate Indira Gandhi Canal
India has siigned a Second Loan Agreement with New Development Bank (NDB) for US$100 million for Rajasthan Water Sector Restructuring Project for Desert Areas.
Signed in New Delhi on 13 Feb 2018, it is the first tranche approved by the NDB under the Multi Tranche Financing Facility of US$345 million for this project.
The project is to rehabilitate the 678 km long Indira Gandhi Canal system, built during 1958-63, to prevent seepage, conserve water, and enhance water use efficiency as mandated by both national and state level policies on water use.
The project would multiple benefits such as:
Arresting the seepage by rehabilitating the deteriorating canal lining of the Indira Gandhi Nahar Project (IGNP) which needs urgent attention;
Rehabilitation of waterlogged areas.
The Rajasthan government will implement the project primarily through Rajasthan Water Resources Department over six years.
The Loan Agreement was signed by Govind Mohan, Joint Secretary, Department of Economic Affairs on behalf of the Government of India, and Shaohua Wu, Director General, Project Financing on behalf of the NDB.
The Project Agreement was signed by Shikhar Agarwal, Principle Secretary, Water Resources Department on behalf of the Rajasthan Government.
The representatives of the Government of India, NDB and the Government of Rajasthan also signed Facility Framework Agreement under which NDB has agreed to provide Multi-Tranche Financing Facility for amount aggregating to US$345 million for the project. fii-news.com