India : Himachal Pradesh Subtropical Horticulture, Irrigation, and Value Addition Project

Sovereign Project | 53189-002

Himachal Pradesh is a small state with more than 50% of its areas in mountains and less than 10% in cultivation. The state's economic growth in the 1990s was driven by agriculture and its allied activities, but has gradually shifted to the industrial/manufacturing and services sectors. Still, Himachal Pradesh is the only state in India where 90% of the state's population live in rural areas and nearly 62% of the state population relies on agriculture and its allied sectors for employment. Despite the importance of agriculture in the livelihood of large rural population, there is a distinct agricultural development gap between the northern (or temperate horticulture areas) and southern (or subtropical horticulture areas) parts of Himachal Pradesh. Subtropical horticulture farmers earn only $116 per month while temperate horticulture farmers earn about $1,550 per month.

Project Details

  • Project Officer
    Kim, Sunae
    South Asia Department
    Request for information
  • Approval Date
    8 February 2023
  • Country/Economy
    India
  • Sector
    • Agriculture, natural resources and rural development

Related Projects

Project Name Himachal Pradesh Subtropical Horticulture, Irrigation, and Value Addition Project
Project Number 53189-002
Country / Economy India
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4291-IND: Himachal Pradesh Subtropical Horticulture, Irrigation and Value Addition
Ordinary capital resources US$ 130.00 million
Operational Priorities OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP5: Promoting rural development and food security
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development - Agricultural production - Agriculture research and application - Agro-industry, marketing, and trade - Irrigation - Rural market infrastructure
Gender Equity and Mainstreaming Effective gender mainstreaming
Description Himachal Pradesh is a small state with more than 50% of its areas in mountains and less than 10% in cultivation. The state's economic growth in the 1990s was driven by agriculture and its allied activities, but has gradually shifted to the industrial/manufacturing and services sectors. Still, Himachal Pradesh is the only state in India where 90% of the state's population live in rural areas and nearly 62% of the state population relies on agriculture and its allied sectors for employment. Despite the importance of agriculture in the livelihood of large rural population, there is a distinct agricultural development gap between the northern (or temperate horticulture areas) and southern (or subtropical horticulture areas) parts of Himachal Pradesh. Subtropical horticulture farmers earn only $116 per month while temperate horticulture farmers earn about $1,550 per month. Temperate horticulture in northern Himachal Pradesh has been dominated by the production of apple, which is the most important fruit crop for the state accounting for 79% of the state's fruit production in 2017 -2018. The state recognizes the need to diversity horticulture production. This is because apple production fluctuates due to weather and changing markets, and the potential to reduce income disparity between the northern and southern parts of Himachal Pradesh, benefiting from accessing off-season markets of other fruits and vegetables in the subtropical area. The State Government of Himachal Pradesh requested the Asian Development Bank (ADB) to support development of horticulture in subtropical areas of the state, and reduce income gap between farmers in subtropical and temperate horticulture regions.
Project Rationale and Linkage to Country/Regional Strategy The project aims to increase income of at least 15,000 farm households in seven districts of Bilaspur, Hamipur, Kangra, Mandi, Solan, Sirmour and Una in subtropical areas of Himachal Pradesh. At least 20% of the project's beneficiaries will be poor households. The project will expand irrigation to farmers, increase subtropical horticulture production and its climate resilience, and assure profitability of subtropical horticulture production through value chain development of targeted commodities.
Impact

Rural household income increased in Himachal Pradesh (Strategies for Doubling Farmers' Income in Himachal Pradesh)

Climate resilience strengthened in Himachal Pradesh (Himachal Pradesh: Sustainable Development Goal 1)
Project Outcome
Description of Outcome

Agriculture income and climate change resilience of beneficiary households in subtropical areas of Himachal Pradesh improved.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Irrigated area expanded and sustainably operated.

Climate resilient subtropical horticultural production increased.

Market access for subtropical horticulture farmers developed
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Bilaspur, Hamirpur, Kangra, Mandi, Sirmaur, Solan, Una
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project risks and impacts, caused by the construction and installation of storage tanks, intake structures, distribution pipes, and conveyance systems, are site-specific and temporary. Any category A subprojects will be ineligible. To comply with ADB's Safeguard Policy Statement, an initial environmental examination was prepared for the detailed design of irrigation schemes for the first 4,000 ha of horticulture land. The impacts during construction are an increase in dust and noise levels, risks to occupational health and safety, and a decline in water quality. To mitigate these impacts, environmental management plans were prepared, and the DOH and JSV will include them in the bidding documents for the initial works contracts. For the irrigation schemes on the remaining 2,000 ha, which will be finalized during project implementation, an environmental assessment and review framework was prepared.45 Both the initial environmental examination and the environmental assessment and review framework will be disclosed on ADB and DOH websites. CHPMA cluster farmers will receive training on good agricultural practices. The PMU will monitor and document contractors' compliance with environmental safeguard measures and prepare environmental monitoring reports annually during construction and operation, until ADB issues a project completion report.
Involuntary Resettlement The project will not involve any involuntary acquisition of land or restrictions on land use. Category A or B subprojects will be ineligible. The irrigation schemes will be built on government land, and no non-titleholders are present in the project areas.46 The subtropical horticulture orchards will be on farmers' own land, requiring no land acquisition or physical or economic displacement. The PMU will enter into agreements with the farmer beneficiaries, in the form of memorandums of understanding, if voluntary land donation is required for building small water tanks or for laying pipelines in their field.
Indigenous Peoples The project does not affect the dignity, human rights, livelihood systems, or culture of indigenous peoples, or affect the territories or natural or cultural resources that indigenous peoples own, use, occupy, or claim as their ancestral domain. While scheduled tribes are found in the project districts, they have no collective attachment to distinct habitats and territories, nor to natural resources in these habitats and territories.47 The PRF implementation revealed that scheduled tribes in the subtropical areas are known to be mobile and not to settle down to farm in any one area. None of the project clusters for the first 4,000 ha of orchards, nor the preliminary clustering for the remaining 2,000 ha identified any scheduled tribes who joined clusters. Any subproject proposal that involves any adverse impact on indigenous peoples will be ineligible. The project will ensure that it does not lead to any negative impacts for indigenous peoples during implementation by asking the farmer group facilitators to monitor for such impacts.
Stakeholder Communication, Participation, and Consultation
During Project Design Project relevant documents will be disclosed in accordance with ADB's Access to Information Policy. Specifically, the safeguard documents, IEE, grievance reporting mechanism, implementation progress reports, and other updates, will be disclosed on ADB's website. ADB, the PMU and PIU will work closely to disseminate relevant ADB project and subproject-related information through stakeholders and/or community consultations. All project information will be disclosed to the public and stakeholders concerned in both the local language and the languages, as may be appropriate
During Project Implementation A Stakeholder Engagement Communication Plan (SECP) has been prepared, drawing on best practices outlined in ADB's Access to Information Policy. It is based on transparency, timeliness, meaningful participation, and inclusiveness principles. It will adopt a systematic, transparent, and participatory approach to stakeholder engagement and information disclosure and ensure that all stakeholders, especially the vulnerable groups, such as the poor and female-headed households, who risk marginalization, are provided with opportunities for receiving timely information, and can provide feedback during project implementation. Project stakeholders include: Positively affected Project Beneficiaries, mainly small and marginal farmers, farmers groups/cooperatives, SCs and STs, and women's groups; ii) Disadvantaged and Vulnerable Households, such as small and marginal farmers, scheduled castes households, scheduled tribes, women-headed households, people with disability as well as households designated below the poverty line; iii) Potentially negatively affected groups, such as households facing temporary access/use restrictions from irrigation schemes, or loss of livelihoods; and iv) Other Interested stakeholders such as well as line departments of Jal Shakti, Rural Development, Forest, and PWD. Private partners involved in agribusiness/horticulture and value chain development and NGOs associated with forestry, agriculture, horticulture, and rural development are also important stakeholders of the project. The SECP informs and supports community development, enhances government capacity to deliver a positive project outcome, and enhances project benefits while mitigating any potential negative impacts.
Business Opportunities
Consulting Services Consulting Services Recruitment of team and individual consultants will be conducted by the EA/IA using ADB's Procurement Regulations (2017). Advance procurement action will be done through the Project Readines Financing loan, which will also prepared the bidding documents for the ensuing loan.
Procurement Procurement of goods and works will be conducted by the EA/IA using ADB's Procurement Regulations (2017) and standard bidding documents e-GP system with the required ADB organization application installed will be used. Advance procurement action will be done through the Project Readiness Financing loan, which will also prepared the bidding documents for the ensuing loan.
Responsible ADB Officer Kim, Sunae
Responsible ADB Department South Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SARD
Executing Agencies
Department of Horticulture, Government of Himachal Pradesh
Timetable
Concept Clearance 22 Jun 2020
Fact Finding 28 Mar 2022 to 17 May 2022
MRM 12 Oct 2022
Approval 08 Feb 2023
Last Review Mission -
Last PDS Update 08 Feb 2023

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Himachal Pradesh Subtropical Horticulture, Irrigation, and Value Addition: Environmental Assessment and Review Framework Environmental Assessment and Review Framework Oct 2022
Himachal Pradesh Subtropical Horticulture, Irrigation, and Value Addition: Draft Environmental Assessment and Review Framework Environmental Assessment and Review Framework Oct 2022
Himachal Pradesh Subtropical Horticulture, Irrigation, and Value Addition: Initial Environmental Examination Initial Environmental Examination Oct 2022

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
CONSTRUCTION SUPERVISION CONSULTANTS Firm - Consulting Closed
53189-IND: Himachal Pradesh Subtropical Horticulture, Irrigation and Value Addition Project (HPSHIVA) Advance Notice Active
53189-IND: Himachal Pradesh Subtropical Horticulture, Irrigation and Value Addition Project Other Notice Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
Himachal Pradesh Subtropical Horticulture, Irrigation, and Value Addition: Procurement Plan Procurement Plans Oct 2022