The World Bank has signed a deal to lend the Government of India US$325 million for a project that will rehabilitate irrigation schemes and enhance the safety of several dams.

Maharashtra Water Sector Improvement Project (MWSIP) aims to rehabilitate and modernise 286 selected irrigation schemes covering about 670,000 hectares of cultivable command area, enhance the safety of 291 dams, improve water management practices and instruments, strengthen agriculture support services and implement a social and environmental management plan.

The MWSIP agreement was signed by Michael Carter, the Bank’s Indian director, and Madhusudhan Prasad, joint secretary for India’s finance ministry. Also present at the signing were Finance Minister P Chidambaram and World Bank Chief Paul Wolfowitz.

The Bank is also ready to lend up to US$3B over the next three years to support rural infrastructure in India, with a focus on building roads, providing drinking water and establishing irrigation facilities.