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General Studies Prelims

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India Secures $250M World Bank Loan for Dam Rehabilitation Project

The Government of India recently entered a loan agreement worth $250 million with the World Bank. This financial agreement is specifically aligned with the second phase of the Dam Rehabilitation and Improvement Project (DRIP Phase II), intended to enhance the safety and efficiency of selected dams in the country.

About DRIP Phase-I

Initiated in April 2012, the Dam Rehabilitation and Improvement Project (DRIP) was primarily funded by the World Bank. The project aimed to bolster the safety and operational performance of specific existing dams. Alongside this, the scheme also prioritized institutional strengthening with a system-wide management approach.

The Central Water Commission (CWC) took charge of the overall coordination and supervision of the project. The Dam Health and Rehabilitation Monitoring Application (DHARMA), a web-based tool, has been developed under this project to monitor dam health and generate appropriate rehabilitation protocols. The scheme ended successfully in March 2021.

The Launch of DRIP Phase-II and Phase III

Building upon the success of the first phase of DRIP, the Ministry of Jal Shakti commenced DRIP Phase II and Phase III in October 2020. These Phases aim to improve the safety and performance of selected existing dams and strengthen dam safety institutions at central and state levels.

Funding and Implementation of DRIP Phase-II

The funding pattern for DRIP Phase II follows an 80:20 ratio for Special Category States, 70:30 for General Category States and 50:50 for Central Agencies. Funding sources include World Bank and Asian Infrastructure Investment Bank (AIIB), each contributing $250 million.

Approximately 120 dams across various Indian states are a part of the project’s implementation plan, which is managed at the national level by the Central Water Commission (CWC).

Significance of the Project

India boasts 5334 large dams in operation and about 411 dams under construction, making it third globally after China and the United States. These dams play a significant role in the country’s water security and economic growth, storing approximately 300 billion cubic meter of water annually.

Furthermore, these dams are essential in tackling climate change, as they assist in sustaining livelihoods and food security for millions of Indians. They also contribute to flood mitigation, with many dams playing a crucial role in reducing potential flood damage.

Addressing Ageing Dams

According to a report by the United Nations, over 1,000 large dams in India will be around 50 years old by 2025, highlighting a growing global risk. DRIP Phase II is particularly focused on addressing this challenge, aiming to mitigate the risks of dam failure and ensuring the safety of people and properties downstream of selected dams.

Generating Employment Opportunities

DRIP Phase II is estimated to generate employment opportunities equivalent to approximately 1,000,000 person days for unskilled workers and 250,000 person days for working professionals.

Dam Safety Legislation

The Dam Safety Bill 2019 seeks to establish surveillance, inspection, operation, and maintenance mechanisms for specified dams across the country. The National Committee on Dam Safety will be formed under the Chairperson of the Central Water Commission. Additionally, a National Dam Safety Authority will be set up, headed by an officer not below the rank of an Additional Secretary appointed by the central government.

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