India to get $115 million World Bank loan for REWARD project

The loan agreement was signed by the Central government, the states of Karnataka and Odisha and the World Bank have signed a $115 million (Rs 869 crore) Programme (Rejuvenating Watersheds for Agricultural Resilience through Innovative Development Programme) that will help national and state institutions adopt improved watershed management practices to help increase farmers’ resilience to climate change, promote higher productivity and better incomes.

The Centre plans to 26 million hectares of degraded land by 2030 and doubling farmers’ income by 2023.

"Effective watershed management can help enhance livelihoods in rainfed areas, while building a more resilient food system. In this context, the new program will help the participating state governments in their efforts to transform watershed planning and execution and adopt science-based planning that could be replicated across the country," the ministry said.

It will also help the participating and others states to adopt new approaches to watershed development, it added.

While a robust institutional architecture for watershed development already exists in India, renewed focus on science-based, data-driven approaches implemented through this project can offer new opportunities for farmers in the face of climate change.

India has one of the largest watershed management programs in the world. This programme will further advance this progress by developing and applying comprehensive spatial data and technologies, decision support tools, and knowledge exchanges.

The International Bank for Reconstruction and Development (IBRD) financing will support Karnataka with $60 million (Rs 453.5 crore), Odisha with $49 million (Rs 370 crore), and the remaining $6 million (Rs 45.5 crore) will be for the central government’s Department of Land Resources, the ministry said.

The $115 million (Rs 869 crore) loan has a maturity of 15 years, including a grace period of 4.5 years, it added.