Loan agreement of $100million between ADB and India to improve Cauvery delta

The Government of India and the Asian Development Bank (ADB) have signed a $100 million loan agreement to strengthen key irrigation and drainage system and improve water management in the Vennar sub-basin of the Cauvery delta in Tamil Nadu.

Details:

• The financing will be used to strengthen embankments of six major irrigation water channels in the Vennar system and rehabilitate 13 irrigation pumping schemes.
• The project aims to improve existing infrastructure and will provide flood protection and renewed access to irrigation.
• The loan will support Tamil Nadu’s water resources professionals to manage resources better, and with greater involvement of the stakeholders they service.
• Communities will be involved in planning and delivery of water services. Flood forecasting and warning systems will be installed and a flood risks map drawn up to help communities respond more effectively to extreme events.
• The loan from ADB’s ordinary capital resources has a 25-year term. The Water Resources Department of the State of Tamil Nadu is responsible for implementing the project, which is expected to be completed by December 2020.

Background:

The Cauvery river basin is a critical source of water for agriculture, both within Tamil Nadu and neighbouring states. The vast majority of the delta’s population is engaged in farming and fishing.