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The Government of India, Government of Odisha and the World Bank signed a US$165 million loan agreement for the Odisha Integrated Irrigation Project for Climate Resilient Agriculture. The Project will be implemented in rural areas vulnerable to droughts and largely dependent on rainfed agriculture. It will benefit about 125,000 smallholder farmer households from 15 districts of Odisha. The project will support smallholder farmers strengthen the resilience of their production systems as well as diversify and improve the marketing of their produce, for increased income. The $165 million loan from the International Bank for Reconstruction and Development (IBRD), has a 6-year grace period, and a maturity of 24 years. It is a project under the National Action Plan on Climate Change of the Government of India. Since 2009, the frequency of droughts in the state has increased from 1 in 5 years to 1 in 2 years. About 70 percent of total cultivated area is prone to droughts compared to 40 percent in the 1970s. Agriculture is also a major source of Greenhouse Gas (GHG) emissions in Odisha, responsible for about 25 percent of the GHG emissions in the state.

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