The loan of $325 million from the International Bank of Reconstruction and Development, the WB's lending arm, has been given for the implementation of the Maharashtra Water Sector Improvement Project.
The objective of the project in the state of 100 million people, the Bank said, is to strengthen the capacity for multi-sectoral planning, development, and sustainable management of the water resources and to improve irrigation service delivery and agricultural productivity.
"This project will contribute towards achieving the objectives of sustainable economic growth and poverty reduction through maximising the productivity of water through the improvement of water resources management and irrigation service delivery," said Michael Carter, World Bank country director for India.
It is estimated, he said, that as a result of this project farm incomes on average are expected to increase by 49 per cent, and about 33,610 farm families, who are fully dependent on agriculture will be brought above the poverty line at the projects closure.
The IBRD loan is a variable-spread loan with a maturity of 20 years, including a grace period of five years.
