India and ADB Sign $100 Million Loan Pact on Cauvery Basin Development [ Current Affairs ]


India and Asian Development Bank (ADB) signed a 100 million dollars loan agreement for irrigation, drainage system and water management project in Vennar sub-basin of Cauvery delta in Tamil Nadu.

  • In Vennar system project is to improve water management and strengthen embankments of 6 major irrigation water channels.
  • Cauvery river basin is a critical source of water for agriculture in Tamil Nadu and neighbouring states.
  • Majority of the channel’s population is involved in farming and fishing.
  • The left irrigation system was unable to meet user demand and increasingly defenseless to floods and droughts because of lack of investment.
Image shows the Asian Development Bank

Image shows the Asian Development Bank

showing image of Asian Development Bank


  • The project objective is to improve existing infrastructure and will provide flood protection and renewed entry to irrigation.


  • Loan will support Tamil Nadu’s water resources to manage resources better and greater involvement of the stakeholders they service.
  • Local communities will be involved in planning and delivery of water services, flood forecasting and warning systems.
  • Flood forecasting and warning systems will be also installed.
  • Flood risks map will tired to help communities respond more effectively to exciting events.
  • Loan provided from ADB’s ordinary capital resources and loan has a 25-year term.
  • Project is expected to be completed by December 2020.

About Asian Development Bank (ADB)

  • Asian Development Bank (ADB) is a regional development bank established on 19 December 1966.
  • It’s headquartered in Ortigas Center located in Mandaluyong, Metro Manila, Philippines.
  • It is multilateral lending agency based in Manila, Philippines.
  • It is committed to reduce poverty in Asia and the Pacific region through:

    • Environmentally sustainable growth
    • Regional integration
    • Inclusive economic growth
  • Bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP).
  • ADB owned by 67 members – 48 from the region including India and 19 from outside.

Purpose of ADB:

  • Purpose of ADB is to Social and economic development.

- Published on: July 18, 2016