The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Shri Narendra Modi, has given its approval to:

(i)  implement the World Bank assisted National Watershed Management Project "Neeranchal" with a total outlay of $357 million (Rs 2142.30 crore at ₹ 60 = $1)

(ii) implement the project at the National level as well as in the nine States of Andhra Pradesh, Chattisgarh, Gujarat, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan and Telangana.

The total cost of the project is ₹ 2142.30 crore of which the Government's share is ₹ 1071.15 crore (50 percent) and rest is the loan component from the World Bank.

For achieving the major objectives of the Watershed Component of the Pradhan Mantri Krishi Sinchayi Yojana (PMKSY) and for ensuring access to irrigation to every farm (Har Khet Ko Pani) and efficient use of water (Per Drop More Crop), Neeranchal is primarily designed to address the following concerns:

i.    bring about institutional changes in watershed and rainfed agricultural management practices in India,

ii.    build systems that ensure watershed programmes and rainfed irrigation management practices are better focussed, and more coordinated, and have quantifiable results,

iii.    devise   strategies   for   the   sustainability   of   improved   watershed. management practices in programme areas, even after the withdrawal of project support,

iv.    through   the  watershed   plus   approach,   support   improved   equity, livelihoods, and incomes through forward linkages, on a platform of inclusiveness and local participation.

Neeranchal will translate into better implementation outcomes of PMKSY. The programme will lead to reducing surface runoff of rainwater, increasing recharge of ground water and better availability of water in rainfed areas resulting in incremental rainfed agriculture productivity, enhanced milk yield and increased cropping intensity through better convergence related programmes in project areas.

Neeranchal is designed to further strengthen and provide technical assistance to the Watershed Component of PMKSY, in particular and all  components of PMKSY, in general, to enhance its delivery capacity.  Neeranchal will support the Watershed component of PMKSY (erstwhile IWMP) which was implemented by the Department of Land Resources (DoLR) in 28 States.

Watershed development projects are area development programme and all  people living in the project area will be benefitted.

Background:

The Integrated Watershed Management Programme (IWMP) was implemented since 2009-10 by the DoLR, for supporting watershed development in 28 States. From 2015-16 onwards, the IWMP will be implemented as the Watershed Component of PMKSY.

The potential of the watershed approach followed by the erstwhile IWMP to support both conservation and production outcomes including the availability of water in rainfed areas, catering to the needs of small and marginal farmers as well as the asset-less, including women, has been successfully demonstrated at scale across various States of India. However, despite these successes, a number of challenges remain for watershed development to achieve better outcomes, including enhanced participation of communities, building stronger capacities and systems to plan, implement, monitor and post-project sustainability of local institutions and assets. These challenges, if not resolved, can result in implementation delays, slow disbursements and benefits.

Watershed project funding under PMKSY enables national implementation and institutional strengthening through World Bank support. Neeranchal is the World Bank-assisted national watershed management project implemented as the Watershed Component of PMKSY, combining government funding and a loan to strengthen institutional capacity, technical assistance, and systems for coordinated, results oriented watershed and rainfed irrigation management. The project emphasises sustainability of practices post support, enhanced community participation, local institution strengthening, and a watershed plus approach to improve equity, livelihoods and convergence with related programmes, aiming to reduce runoff, increase groundwater recharge and raise productivity in rainfed areas.