Government, World Bank ink loan agreement for Tamil Nadu Irrigated Agriculture Modernization Project

The Union Government, Tamil Nadu Government and World Bank have signed $318 million dollar loan agreement for the Tamil Nadu Irrigated Agriculture Modernization Project.
The $318 million loan from World Bank’s lending arm International Bank for Reconstruction and Development (IBRD) has maturity of 19 years with 5-year grace period.

Tamil Nadu Irrigated Agriculture Modernization Project

The project aims to promote climate resilient agriculture technologies, improve water management practices, and increase market opportunities for small and marginal farmers.
It will rehabilitate and modernize about 4,800 irrigation tanks and 477 check dams, spread across 66 sub-basins, in delivering bulk water to irrigation systems. It will benefit about 5 lakh farmers of which majority are small and marginal from improved and modernized tank irrigation systems.
The project will also coordinate with other World Bank-supported projects in Tamil Nadu and at national level, including the Tamil Nadu Rural Transformation Project, National Groundwater Improvement Project and National Hydrology Project to ensure synergy and enhance long-term project impact.


This project will help Tamil Nadu to scale up its efforts to unlock full potential of its agriculture sector. It will support farmers from water stressed state to improve efficiency of water used in farming, diversify into high value crops, and produce crops that are resilient to increasing threats of climate change. Such efforts will be a win-win for all, also lead to better use of scarce water resources and raising household incomes of farmers.