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World Bank lends India $325m for water projects
(Agencies)
Updated: 2005-06-24 10:03

The World Bank on Thursday approved a $325 million loan to India to improve water irrigation and distribution systems in Maharashtra, the South Asian country's third-most populous state.

Michael Carter, the World Bank's country director for India, said the funds would support a government project expected to enhance irrigation coverage and boost crop yields.

Country Director (India) of World Bank Michael Carter speaks at a workshop Assessing the Investment Climate in Karntaka organized by the World Bank and the Confederation of Indian Industry, in Bangalore, India, Tuesday, June 21, 2005.
Country Director (India) of World Bank Michael Carter speaks at a workshop Assessing the Investment Climate in Karntaka organized by the World Bank and the Confederation of Indian Industry, in Bangalore, India, Tuesday, June 21, 2005.[Reuters]
"As a result of this project, farm incomes on average are expected to increase by 49 percent, and about 33,610 farm families who are fully dependent on agriculture will be brought above the poverty line at the projects closure," Carter said.

More than half of the approximate 100 million people in Maharashtra live in rural areas, of which about 80 percent depend on agriculture for their livelihoods, the World Bank said. Rainfall is highly irregular in the region in Western India, which also includes the city of Mumbai.

The World Bank's loan has a maturity of 20 years, including a five-year grace period.



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