Andhra Pradesh has signed a Rs 2,025 crore loan agreement with World Bank for the AP water sector improvement project (modernisation of Nagarjunasagar project). This is one of the biggest World Bank aid for a single project in any state.
The Nagarjunasagar is one of the largest multipurpose major irrigation projects in India with an ayacut of 895,000 hectare, and benefits Guntur, Prakasham, Nalgonda, Khammam and Krishna districts. Its command has about 7,16,850 farmers.
The project was constructed more than 50 years ago. The canal system has been damaged resulting in inequitable water distribution. The total cost of the project is Rs 4,444.41 crore. While the World Bank would give Rs 2,025 crore, the remaining would be borne by the state.
The state government had commenced the modernisation works in 2008 and incurred Rs 220.96 crore so far.
