World Bank to provide around Rs 2,254 crore for four new-state level projects in Rajasthan

Contact:
In New Delhi: Sudip Mozumder (91-11) 24617241
smozumder@worldbank.org
In Washington: Erik Nora (202) 458 4735
enora@worldbank.org 

Jaipur, December 3, 2009 – The World Bank today extended its support to the Government of Rajasthan with a proposed assistance program of about Rs 2,254 crore ($490 million) for four new state-level projects over the coming two years. This was announced by the World Bank Group President, Robert B. Zoellick, following his meetings with Rajasthan Chief Minister Ashok Gehlot and other senior government officers, at the end of a day-long visit to the State.

The new state-level projects would aim to promote better livelihood, improve management of water resources, construct rural roads and promote agriculture competiveness. They are expected to be presented to the World Bank Board by financial year 2011 (World Bank financial year is from July to June).

The Rajasthan Rural Livelihoods Project (approx. Rs 690 crore or $150 million) aims to help increase and sustain income of the poor, especially women, in select drought prone districts of Rajasthan. This will be done through social mobilization, credit linkages to banks and micro-finance institutions, and new livelihood strategies that are adaptable to climate change.

The Rural Roads Project (approx. Rs 1,150 crore or $250 million) is expected to increase rural connectivity in sparsely populated areas of Rajasthan, not covered under the Pradhan Mantri Gram Sadak Yojna (PMGSY) program of the Government of India.

Additional Financing for the ongoing Water Sector Restructuring Project (approx. Rs 92 crore or $20 million) aims to scale up policy and institutional reforms under the ongoing Rajasthan Water Sector Restructuring Project.  This will include modernization of about 50,000 hectares of canal area in the Bhakra system; further strengthen Water Users Associations to take on irrigation management work; and improve hydrological information systems in the state. 

The Rajasthan Agricultural Competitiveness Project (approx Rs 322 crore or $70 million) seeks to intensify agricultural production, promote diversification, and enhance efficiency of marketing systems.

In addition to the existing pipeline of proposed projects, the World Bank is keen to support the Government of Rajasthan with a substantial program to address the water resource challenges facing the State.  

Earlier today, Zoellick travelled to villages in Tonk district to meet and interact directly with rural households. In Gulabpura village of Tonk district, he met with around 100 members from the Maitree Dairy Federation, who were initially supported by the now closed World Bank-financed Rajasthan District Poverty Initiatives Project and SRIJAN, a non-government organization. The women narrated how the Project enabled them to come together to undertake a common activity. They collected higher volumes of milk through a federation structure which helped them generate better economies of scale. This enhanced their marketing and distribution opportunities as well.

While in Gulabpura village, he also visited a school run under the Sarva Sikhsa Abhiyan (SSA), which is supported nationally by the World Bank.

At Awa village in the same district, Zoellick interacted with nearly 100 school girls, teachers and parents from the SSA-supported Kasturba Gandhi Balika Vidyala – a residential primary school for girls, many of whom are first generation learners from Scheduled Caste and Scheduled Tribe families. Children and their parents, from historically disadvantaged communities, gave an account of how their experience with these schools is changing their attitude towards educating their daughters.

Later, Zoellick met with farmers and members of a Water Users Association who gave him firsthand accounts into the challenges that the water-starved state faces and how they are dealing with it. The World Bank President was accompanied by senior state government officials including Mr. C K Mathew, Principal Secretary, Finance and Mr. D B Gupta, Principal Secretary, Planning.

This visit by Zoellick takes place at a time when the World Bank Group is deepening its engagement with low-income states. Zoellick experienced firsthand the complexity of the development challenges facing states such as Rajasthan and some of the poverty reduction efforts being undertaken by the State to address these challenges.

The World Bank has been supporting the reforms and development program of the Government of Rajasthan since 1974, through technical assistance, policy-based loans and credits, and investment projects in health, livelihoods and water resources management (Approx Rs 4,744 crore or $1031.3 million during1974-2004.) Apart from these, Rajasthan is also part of several ongoing national projects like the Sarva Siksha Abhiyan, Rural Roads Project, the Third National HIV/AIDs Control Project, National Tuberculosis Control Project, Reproductive and Child Health II and the National Agricultural Innovation Project.

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