Government has signed second Loan Agreement with New Development Bank (NDB) for financing of Rajasthan Water Sector Restructuring Project for the Desert Areas. This is the first tranche loan of $100 million was approved by the NDB under Multi Tranche Financing Facility of $345 million for this project.
Rajasthan Water Sector Restructuring Project
The objective of the project is to rehabilitate 678 km long Indira Gandhi Nahar Project (IGNP) built during 1958-63 to prevent seepage, conserve water, and enhance water use efficiency as mandated by both national and state level policies on water use. The project will enable arresting the seepage by rehabilitating the deteriorating canal lining of IGNP system which needs urgent attention. Its implementation period is of 6 years.
The project is aimed at arresting seepage by refurbishing canal, modernisation of irrigation management practices by involving water users’ associations, strengthening of drinking water supply and irrigation facilities and rehabilitation of waterlogged areas.
New Development Bank
NDB is multilateral development bank promoted by BRICS nations viz. Brazil, Russia, India, China and South Africa. It is outcome of 6th BRICS Summit being held in Fortaleza, Brazil. It is headquartered in Shanghai, China. It will have a regional office in Johannesburg, South Africa.
NDB began its operations in July 2015 with an initial capital of 100 billion dollars. The goal of the bank is to fund infrastructure projects in emerging economies for sustainable development. In the NDB, each participant country has been assigned one vote, and none of the countries have veto power.