India, ADB sign USD 10 million loan agreement to support project preparation to expand horticulture in Himachal Pradesh

India, ADB sign USD 10 million loan agreement to support project preparation to expand horticulture in Himachal Pradesh

The Asian Development Bank (ADB) and the Government of India signed a $10 million agreement project readiness financing (PRF) to help finance piloting activities, and design and capacity building for an ensuing project that aims to expand horticulture production and farm household income in the hill state of Himachal Pradesh.

The Agreement Signed by

The signatories to the PRF for Himachal Subtropical Horticulture, Irrigation, and Value Addition Readiness Project were Dr. C. S. Mohapatra, Additional Secretary, Department of Economic Affairs in the Ministry of Finance who signed for the Government of India, and Mr. Hoe Yun Jeong, Officer-in-Charge of ADB’s India Resident Mission, who signed for ADB.

Aims - India, ADB sign USD 10 million loan agreement to support project preparation to expand horticulture in Himachal Pradesh

The PRF project aims to ensure implementation readiness with prior testing of new production technologies and marketing systems so that the ensuing project is cost-effective and gets completed in a timely manner to enhance farm profitability.

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The ensuing project, to be designed by the PRF, will support development of subtropical horticulture, including cultivation of fruits and vegetables, in the state’s southern region which is currently lagging due to limited access to perennial water sources, crops losses due to wild animal encroachment and limited access to high value markets.

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The pilot activities supported by the PRF project include establishment or rehabilitation of 16 irrigation schemes for water extraction, distribution and storage; developing 17 subtropical horticulture plots for ultra-high density production of selected fruits; fencing horticulture plots to protect crops from animal predation; and forming community horticulture production and marketing associations to build their capacities for business and marketing.

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These pilot activities will then be scaled up under the ensuing project to be implemented in 7 districts of Himachal Pradesh. The PRF also supports establishment of water user association (WUAs) on completed irrigation schemes and enhancing women’s participation.