SALANDI IRRIGATION

closed

A substantial increase in agricultural productivity is one of the basic objectives of India's economic development. The proposed credit is to finance one half of the total cost to be incurred during the Third Plan of a project to irrigate about 225,000 acres of land in the State of Orissa. Part of the proposed credit, equivalent to $1,250,000 would finance the import of equipment. The balance of $6,750,000 would be applied to the local currency cost of the dam, canal system and ancillary works and would be disbursed on the basis of a percentage of total local currency expenditures as they are made over the period of the project's execution. Benefits in terms of higher yields, more reliable production and crop diversification will be substantial. Agricultural production will increase several times in value. With irrigation, double cropping will be undertaken on almost 40 percent of the land, and much higher yields will be obtained for rice, the dominant crop. A variety of new crops will be introduced into the area.