Tripura is in line for a $140 million World Bank loan to increase the agricultural incomes of rural households and improve governance and service delivery by state institutions for delivery of enhanced transport connectivity.

Tripura government officials say a World Bank team is already in the state conducting surveys for the project.

The total project cost is $175 million of which the Bank will provide $140 million and the rest will be borne by the Centre/ State government.

The Bank says the average annual growth rate in the net state domestic product (NDSP) of Tripura was 16.3 percent between 2012–2013 to 2019–2020. "This places Tripura on par with several of the other northeastern states, given the relatively small size of the states. However, Tripura’s unique geographic position presents several challenges such as poor infrastructure, especially transport and markets; low levels of industrialization; high unemployment rates; communication bottlenecks due to hilly terrain; and abridged natural trade routes" the Bank says in the document.

It says despite these challenges, Tripura (more broadly NER) is geopolitically important for India’s strategic shift to the important Act East Policy in deepening trade relations with Bangladesh and the Southeast Asian nations as well as for inclusive development. Recent transport infrastructure and regulatory initiatives are in fact unlocking opportunities for
the NER.

The Bank says farmers and other value chain actors still face many constraints in furthering diversification and the development of value chains. "Currently, the Agriculture Technology and Management Agency (ATMA) and the Krishi Vigyan Kendra (KVK), which are the primary extension agencies, lack the capacity to mainstream new technologies among farmers, who remain dependent, largely, on subsidies as incentives to take up new practices. The near absence of postharvest infrastructure and processing facilities further limits the storage and marketing options" it says adding that the state government needs to focus on diversification towards high value cultivation and an enabling environment for offering potential for inclusive development and competitiveness.

BENEFITS: The proposed project aims to promote socioeconomic development and improve the quality of life of rural communities living in tribal geographies in Tripura through a multi-sectoral approach. More specifically, the project aims at improving the economic opportunity and transport connectivity for rural populations, including tribal women. Transport connectivity will be improved through a statewide rural road improvement program in support of rural road efficiency and accessibility to social and economic amenities such as markets, schools, and other services.

"As a direct contribution to rural economic opportunity and enhanced inclusivity, the project will improve rural livelihoods via diversified production clusters and agriculture logistics including aggregation, storage facilities, and supply chain markets" the Bank says.

The Bank says additionally, the project will support human capital development in these geographies by enhancing school complexes and learning environments, improving access to these facilities, addressing retention of secondary students, and improving early grade teacher capacities.

Finally, the project will strengthen the state institutional capabilities for improved service delivery and governance in the tribal areas making use of incentive-based tools and capacity improvements. Other interventions aimed at gender equality and empowerment, women entrepreneurship, and vocational development programs will be included.

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