Contacts:
In Delhi:
Sudip Mozumder
(91 11) 2461-7241
smozumder@worldbank.org
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In Washington:
Erik Nora
(202) 458 4735
enora@worldbank.org
NEW DELHI, July 20, 2009 ─ A Credit Agreement of US$ 100 million equivalent, for the Second Madhya Pradesh District Poverty Initiatives Project, was signed today by representatives from the Government of India, the Government of Madhya Pradesh and the World Bank. The signatories to the Agreement were Mr Anup K. Pujari, Joint Secretary, on behalf of the Government of India, Mr Shailendra Singh, Secretary, Government of Madhya Pradesh and Panchayat and Rural Development Department, Mr D.P. Ahuja, Secretary, Madhya Pradesh Society for Poverty Alleviation Initiative (MPSPAI) and Mr Rachid Benmessaoud, Acting Country Director, World Bank, India. 
Anup K. Pujari and Rachid Benmessaoud at the Signing
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The Second Madhya Pradesh District Poverty Initiatives Project (MPDPIP-II) is designed to empower the rural poor by organizing them into Self-Help Groups (SHGs) and facilitate their federation into cluster-level organizations, to enable them to access higher value markets, formal financial intermediaries, among other things. It will develop the capacity of SHGs to start or enhance their livelihoods activities and strengthen their business operations through producer-based federations, companies and cooperatives. The project will benefit an additional 300,000 poor rural households in 14 districts of Madhya Pradesh. The project builds on the original MPDPIP, approved by the Bank in 2000, which covered over 2,900 villages spread across 14 districts. It has helped enhance incomes of over 350,000 households by organizing them into over 52,000 Common Interest Groups (CIGs) and by providing them with financial and technical assistance.
“While the previous project has achieved some very impressive results,” said Rachid Benmessaoud, Acting Country Director, World Bank, India “the new project has certain additional dimensions like linking of the commercial banking and private sector to the SHG groups, which will allow the benefits reaching the rural poor become more sustainable and help growth of the rural economy.”
An impact evaluation conducted at the end of the MPDPIP-I showed it has improved livelihoods, reduced vulnerability, and enhanced social empowerment. These results include 65 percent increase in annual household income of project participating families, 149 percent increase in value of agricultural production, and 27 percent increase in irrigated land for project families investing in agricultural activities.
“Women’s participation in household decision making and attendance in Gram Sabha meetings has been enhanced substantially through the MPDPIP project and has had profound impact on their overall livelihoods,” said Nathan Belete, World Bank Senior Rural Development Economist and project task team leader. “For example, around 80 percent of Village Development Committees established under the project have all women in their executive committees – this has enabled them to make critical decisions regarding funds allocations among their members in a transparent, productive, and sustainable manner. The new project will continue this strategy of women’s empowerment.”
The credit from the International Development Association (IDA), the World Bank’s concessionary lending arm, carries a 0.75 percent service fee, a 10-year grace period, and a maturity of 35 years. # # #
For more information on the Bank’s work in India, visit: http://www.worldbank.org.in
For more project information, please visit: http://www.worldbank.org.in/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=295584&menuPK=295617&Projectid=P102331 |
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