India: Agribusiness Infrastructure Development Investment Program (Tranche 2)
The program, a multitranche financing facility, was approved in 2010 with two tranches. Tranche 1 was designed to support private infrastructure investments, capacity building, and institutional links for the development of two value chains in the state of Bihar. This tranche was canceled in 2016 due to the lack of progress in establishing the public–private partnership arrangement. Tranche 2 was established to promote private sector investment in horticultural value chains within the state of Maharashtra. A loan was approved for $24.3 million in 2011. The project was designed to promote (i) site development and agribusiness infrastructure, (ii) infrastructure links to ensure connectivity and basic services across the value chain, (iii) backward links to the production areas through contract farming and producer companies, and (iv) capacity building to strengthen technical and managerial skills along the value chain. The project was aligned with the agriculture targets of the Eleventh Five-Year Plan of the Government of India. To attract private investment into the sector, the government established a policy framework that promotes PPPs and provides public sector capital grants for private investment in agribusiness infrastructure.
This validation pertains to AIDIP tranche 2 project completion report. IED overall assessment: Unsuccessful.