Govt Signed INR 869 Crore Loan Agreement with World Bank

  Govt Signed INR 869 Crore Loan Agreement with World Bank According to the Union Finance Ministry, the World Bank will provide a $115 million (Rs 869 crore) loan to fund a program in India that will assist national and state institutions in adopting improved watershed management practices to increase farmers' resilience to climate change, promote higher productivity, and improve incomes. The World Bank, the Indian government, the state governments of Karnataka and Odisha, and the World Bank have signed an agreement for the 'Rejuvenating Watersheds for Agricultural Resilience through Innovative Development Program.' For 58 percent of rural households in India, agriculture is their principal source of income. Land degradation, soil erosion, water scarcity, climatic uncertainty, and low productivity are all issues that the sector faces, but it is also very vulnerable to climate change shocks. Crop yields can be affected by rising average temperatures, seasonal precipitation can shift planting seasons and trigger pest outbreaks, and more frequent extreme weather events (such as floods and droughts) might result in food shortages. COVID-19 is also expected to have a disproportionate impact on the livelihoods of vulnerable people. India has one of the world's largest watershed management programs. The new program will strengthen the country's watershed management system. By 2030, the Indian government plans to restore 26 million hectares of degraded land and double farmers' income by 2023. Effective watershed management can help rainfed communities improve their livelihoods while also establishing a more resilient food system. In this context, the new programme will aid participating state governments in their efforts to reform watershed planning and implementation and implement science-based planning that can be repeated across the country. It will also assist the participating states, as well as others, in implementing novel approaches to watershed development. According to the agreement, the International Bank for Reconstruction and Development (IBRD) will fund Karnataka with $60 million (453.5 crore), Odisha with $49 million (370 crore), and the central government's Department of Land Resources with the remaining $6 million (45.5 crore). The Finance Ministry said in a statement, "in this context, the new programme 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. It will also help the participating and other states to adopt new approaches to watershed development." The Covid-19 pandemic in India highlighted the necessity for long-term, risk-averse agriculture that protects farmers from climate change while also bolstering their livelihood. While India already has a strong institutional framework for watershed development, this project's increased focus on science-based, data-driven initiatives can provide new options for farmers in the face of climate change. The Watershed Development Component of the national Pradhan Mantri Krishi Sinchayee Yojana (WDC-PMKSY), India's most important watershed initiative, has achieved great progress, benefiting 2.7 million farmers. The government's new national watershed standards address a number of important issues, including food security, watershed community welfare, and farmer economic gains. The project will assist the government achieve its goal of enhancing income-generating options for farmers by improving the efficiency with which water and land resources are used in agriculture. The loan from the International Bank for Reconstruction and Development has a 15-year maturity with a 4.5-year grace period.