$100-mn World Bank loan for Madhya PradeshJune 25th, 2009 - 1:49 pm ICT by IANS
Washington, June 25 (IANS) The World Bank has approved a $100-million IDA credit to address rural poverty in Madhya Pradesh, one of India’s poorest states with the lowest rate of poverty reduction.
The credit from the International Development Association (IDA), the World Bank’s concessionary lending arm, approved Wednesday carries a 0.75 percent service fee, a 10-year grace period, and a maturity of 35 years.
The credit is for the Second Madhya Pradesh District Poverty Initiatives Project, designed to empower the poor by organising them into Self Help Groups (SHGs) and help them form cluster-level organisations.
It will develop the capacity of SHGs to start or enhance their livelihood activities, strengthen their business operations through producer-based federations, companies and cooperatives, and thereby access higher value markets and formal financial intermediaries, the World Bank said.
The project builds on a similar scheme that was approved by the Bank in 2000, which covered over 2,900 villages spread across 14 districts.
It has helped organise some 325,000 poor rural households into over 52,000 Common Interest Groups (CIGs), providing them with financial and technical assistance.
“This project has achieved some very impressive results,” said Roberto Zagha, World Bank country director for India.
“For example, we have seen an increase in annual household income as well as value of agriculture production covering 300,000 poor rural households. This project will now scale up its activities to 5,000 villages.”
An impact evaluation conducted at the end of the first project showed it has improved livelihood of participants, reduced their 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, the Bank said.
- $170 mn World Bank loans for Rajasthan, Uttarakhand - Jan 14, 2011
- $250 mn World Bank credit for West Bengal farmers - Oct 04, 2011
- World Bank approves funding for India's agricultural project - Mar 28, 2012
- Nabard's Rs.15 bn fund to help women's self-help groups - Apr 14, 2012
- Empowering lives, transforming villages - the self-help way (March 8 is International Women's Day) - Mar 07, 2012
- $100 mn World Bank loan for Andhra poverty reduction project - Dec 23, 2009
- Rural poverty alleviation project for northeast approved - Nov 16, 2011
- Government keen to reduce loan rate for self help groups: Ramesh - Jul 19, 2011
- Bihar hires young professionals to help implement livelihood project - May 03, 2012
- World Bank grants $155.3 million loan for Kerala water project - Dec 16, 2011
- $220 million World Bank credit for Bihar flood-affected - Sep 10, 2010
- Self-employment scheme to become livelihood mission - Jun 25, 2010
- World Bank offers Bihar $100 mn loan - Jul 09, 2012
- Government signs accord with World Bank $155.3 mn grant (With Image) - Feb 17, 2012
- Small borrowers rely on moneylenders: Study - Oct 11, 2011
Tags: agricultural production, agriculture production, business operations, cluster level, concessionary, cooperatives, financial intermediaries, grace period, household income, impact evaluation, impressive results, interest groups, livelihood, madhya pradesh, poorest states, poverty reduction, self help groups, value markets, world bank country director, world bank loan