ADB to provide USD 91 mn loan for Vijayanagara Channel

The Asian Development Bank (ADB) will provide USD 91 million loans to modernize the Vijayanagara Channel irrigation systems and prepare river basin management plans in the Krishna river. The basin management plan will help improve irrigation water use efficiency and contribute to improving sustainable water security in Karnataka, said the multilateral lending agency after signing the agreement with the government regarding the loan.

The investment program, consisting of two project loans, will help Karnataka's water agencies better draw up and roll out effective river basin management plans. One of the projects is helping the modernization of the Gondi irrigation system and supporting the state by preparing a new water resources policy and other water governance strengthening activities.

The projects are also tackling inefficient water use in agriculture that accounts for over 84 percent of the state's total water use. This will improve water availability to meet the rising demand from other users in the state, ADB said.