Japan International Cooperation Agency (JICA) signed an agreement with the Government of India on Wednesday to provide an Official Development Assistance (ODA) loan of ¥ 21297 million (approximately ₹1200 crore) to the Water Resources Department (WRD) of Andhra Pradesh (A.P.) for the implementation of A.P. Irrigation and Livelihood Improvement Project (AP-ILIP) (phase-2, tranche-I).
The loan comes at a nominal interest rate of 1.4% for project activities and 0.01% for consulting services and 30 years of repayment period (including 10 years of grace-period). The agreement was signed by Takema Sakamoto, Chief Representative of JICA India office and S. Selva Kumar, Joint Secretary of the Department of Economic Affairs.
Mr. Sakamoto said JICA recognised the priority accorded by the State government to the transformation of the agriculture sector by increasing productivity, enhancing post-harvest management of processing and value addition of agricultural products.
The ILIP adopts a farmer-oriented approach to support their livelihood. It focuses on rehabilitation of around 20 major and medium irrigation systems and around 450 minor irrigation schemes across A.P. and emphasises on strengthening participatory irrigation management and supporting fishery and animal husbandry development in the State. A unique feature of it is piloting certain food value chain development activities in selected cash crops.
