The Japan International Cooperation Agency (JICA) will provide Rs 1,200 crore loan to Andhra Pradesh for an irrigation and livelihood improvement project, it was announced on Wednesday.
The JICA signed an agreement with the Indian government on Wednesday to provide Official Development Assistance (ODA) loan of 21,297 million Japanese Yen (approximately Rs 1,200 crore) to the Water Resources Department and allied departments of the Andhra Pradesh government.
It is the first ODA loan project to be financed by JICA in Andhra Pradesh after the bifurcation of the state.
The loan for second phase of Andhra Pradesh Irrigation and Livelihood Improvement Project will have 1.4 per cent interest rate for project activities and 0.01 per cent interest rate for consulting services. The repayment period will be 30 years including 10 years of grace period.
The agreement was signed between Takema Sakamoto, Chief Representative, JICA India Office and S. Selvakumar, Joint Secretary, Department of Economic Affairs in the Union Finance Ministry, said a statement released here by JICA.
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Takema hoped that agriculture development, value chain development activities as well as livelihood development activities will result in enhancement of farm productivity and increase of income of farmers and other rural communities.
In Andhra Pradesh, the gap between potential irrigated area and actual irrigated area is huge (over 1.1 million ha) due to a large number of aged irrigation systems and lack of proper systems. As cultivation needs to rely on rainfall, production and quality of crops in those command areas are not stable.
The project focuses on rehabilitation of around 20 major and/or medium irrigation systems, and around 450 minor irrigation schemes. It emphasizes on strengthening participatory irrigation management and supporting fishery and animal husbandry development in the state.
JICA had previously committed approximately 407 billion Japanese Yen (approximately Rs 23,000 crore) under its ODA lending support for various projects in the states of Andhra Pradesh and Telangana.
--IANS
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