Government seeks extension of WB-funded tank project

August 30, 2012 01:00 am | Updated 01:00 am IST - HYDERABAD:

The State Government has sought an extension of deadline for completion of the ambitious World Bank aided AP Community-Based Tank Management Project.

Slow disbursement of funds is claimed as the reason behind the “moderately satisfactory” situation in the overall implementation of the Rs. 1,044.3 crore project, according to the implementation status and report released by the World Bank recently. The study conducted by the World Bank’s team pointed satisfactory progress was achieved in meeting the project development objectives that included enhancement in yields of paddy and other crops as well as fish productivity that tripled.

The project is aimed at covering 3,000 minor irrigation tanks and restoration of irrigation in 2.5 lakh hectare spread over 499 mandals of 21 districts. The main components of the project are institutional strengthening (Rs. 81.4 crore), improvement in minor irrigation systems (Rs. 772.9 crore), agricultural livelihood support (Rs. 128 crore) and project management (Rs. 61.2 crore).

Of the total amount, the World Bank’s specific investment loan component was Rs. 835.4 crore while the Government of India agreed to provide the remaining Rs. 208.9 crore as grant. The recent study conducted by the Bank revealed that cumulative expenditure on the project which is coming to close in December this year was only Rs. 480.76 crore, amounting to 46.04 per cent of the total project cost.

“Slow disbursement of money is the main area of concern under the project. The project is likely to seek an extension of the closing date to satisfactorily complete all the ongoing activities,” the study said.

Command Area Development project director Vinay Kumar told The Hindu that Government sought an extension of the deadline till the completion of all the objectives of the project. Accordingly, letters had been addressed to the Central Government seeking its nod for the proposal.

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