Asian bank loans $24.3 million to boost agri infrastructure

The Asian Development Bank (ADB) will loan US $24.3 Million to modernize and develop agribusiness infrastructure and horticultural industries in the western Indian state of Maharashtra, the Press Information Bureau (PIB) has announced. The Government of India and the ADB signed an agreement Wednesday for the second tranche (US $ 24.3 million) under the US $ 170 million Agribusiness Infrastructure Development Investment Programme which is a multi-tranche financing facility. Government of India''s Ministry of Finance Department of Economic Affairs Joint Secretary Venu Rajamony and ADB Country Director for India Hun Kim, and Maharashtra State Government Joint Secretary N L Tadose signed the agreement. The loan will be disbursed to continue modernization efforts in Maharashtra state''s horticultural industries and will expand agricultural value chains and better integrate small-scale farmers into value chains in Nashik and Aurangabad-Amravati regions. The programme will build physical and institutional links along horticulture integrated value chains (IVCs), which include farmers, processors, agribusiness entrepreneurs, and service providers, a central goal of the Indian government. This will help farmers, traders and other value chain stakeholders to improve their products and processes, become competitive and adapt to changes in end markets. Hun Kim said that the pioneering nature of the investment programme is the application of public-private partnerships in agribusiness value chains. This will help shape future models for the agribusiness sector in India. Rajamony said that the Agribusiness Infrastructure Development Investment Programme fills gaps in agribusiness infrastructure value chains from farm gate to market. He stated that this new integrated approached will promote a more inclusive agribusiness value chain and promote demand-driven farming among smallholder farmers. This second tranche loan from the ordinary capital resources of ADB has a 25-year term including a grace period of five years, commitment charges of 0.15% and interest rate to be determined in accordance with ADB’s LIBOR-based lending facility. The Government of Maharashtra will provide counterpart funds of $6 Million for a total second tranche project investment cost of $ 30.3 Million. The Department of Co-operation, Marketing and textile of Government of Maharashtra is the executing agency of the project, which is expected to be implemented for a period of four years, finishing in 2015, the PIB report said. (QNA) SSS/LY