India –ADB Loan agreement

A worker walks past inside the Asian Development Bank headquarters in Manila

Question: How much amount of loan agreement was signed to improve the irrigation potential between the Government of India and the Asian Development Bank (ADB) in Madhya Pradesh?
(a) 275 million US dollars
(b) 295 million US dollars
(c) 325 million US dollars
(d) 375 million US dollars
Answer- (d)
Related facts-

  • On August 30, 2018, a loan agreement was signed between the Government of India and the Asian Development Bank (ADB) for US $ 375 million to improve irrigation potential in Madhya Pradesh.
  • The objective of this agreement is to contribute in doubling the agricultural income of farmers by expanding the irrigation network and efficiency of irrigation system in Madhya Pradesh.
  • This Irrigation Improvement Project will develop a new, highly efficient and irreversible irrigation network of 125000 hectare, unaffected from climate change and will improve the efficiency of water usage in more than 400 villages.
  • This will benefit more than 8 lakh people in the state.
  • The amount received from the Asian Development Bank will be used to develop the pressurized and automatic irrigation system on a widespread scale to promote irrigation potential.
  • This project will support institutional innovations through the design-manufacturing-operation contract approach.
  • This project will focus on two major irrigation systems.
  • Before this – 125,000 hectares of new, highly efficient and climate unaffected irrigation network will be developed under Kundalia Irrigation
  • This includes the construction of two large pumping stations, which will supply water to a large reservoir, from where the water will be supplied in the fields through the network of underground pipes.
  • This project will also help farmers to adopt micro-irrigated farming practices which include crops with highest value.
  • The second major irrigation system will prepare a comprehensive modernization programme to develop the existing Sanjay Sarovar irrigation project.
  • The Asian Development Bank was established in the year of 1966; currently it has 67 member members.

References-
https://www.adb.org/news/adb-india-sign-375-million-loan-improve-irrigation-madhya-pradesh
http://pib.nic.in/PressReleaseIframePage.aspx?PRID=1544513