2365.5 crore World Bank project: NABARD withdrawing following Ashok's transfer

THIRUVANANTHAPURAM: NABARD is withdrawing from the 2365.5 crore World Bank-assisted 'KERA' project, which will benefit 15 lakh farmers. NABARD's withdrawal came when Principal Secretary Dr B Ashok, who was the project director, was removed from the Department of Agriculture and made the Local Self-Government Commission, leaving no manpower to take further steps to receive money from the World Bank. It was agreed that NABARD would pay 709.65 crore which is the state share. This was a way to implement the project without incurring any financial burden on the government.

Ashok was transferred to another department while the discussions to grant money under NABARD's 'RIAS' scheme were in progress. The NABARD chairman informed the government that the negotiations for Rs 709.65 crore assistance were being suspended and they are withdrawing from the project as the project implementation was in trouble from the very beginning. A letter will be sent next week informing about this. No deputation appointments were made to 32 senior posts either. 'Kerala Kaumudi' had reported that the rescue plan of 15 lakh farmers is failing.

It is indicated that Ashok was transferred in a hurry with the aim of grabbing management authority in the 2365.5 crore project. Ashok was appointed as the Local Self-Government Commission before it was formed and notified. The aim was only to get rid of Ashok. Although the government has to seek central approval and the willingness of the IAS officers to transfer them, it has not happened. No terms of reference or powers have been given to the LSG Commission. The task is to revise the existing local laws and regulations. Retired judges are assigned for this purpose. Ashok was transferred when six of the 13 principal secretary posts were vacant.

World Bank is ready, but...

• The World Bank is ready to fund the KERA project to save farmers by making value-added products through smart agriculture, finding more markets and connecting them with markets.
• It was approved by the Centre last March and the World Bank in October. Although an agreement has been signed with the World Bank, the project implementation information has not been provided.
• Ashok was transferred while preparing the project readiness report, which included 13 items including the information of those in charge of project delivery. 50 crores was supposed to be received by March and 400 crores by next year.

Money for?

• For Value Added Agriculture: ₹906 crore
• For Climate Defense: ₹805.34 crore
• For Agribusiness: ₹511.72 crore
• For project implementation: ₹167.78 crore

30 years

The World Bank loan has a repayment period of twenty-three and a half years and a moratorium of six years. The duration of the project is till March 2029.