Externally Aided Projects in Rajasthan

Externally Aided Projects in Rajasthan Financing Agencies International

Developmental activities by the state are enormous but it does not have adequate financial resources to execute the projects. Hence the State Government seeks loan/ assistance from various external funding agencies including international donors to finance various infrastructure and social sector projects for speedy development of the State.

Various External Agencies financing projects in Rajasthan include:

  • The World Bank Group,
  • Japan International Cooperation Agency (JICA),
  • Asian Development Bank (ADB),
  • International Fund for Agriculture Development (IFAD),
  • Agency Francaise De Development (AFD) ,
  • KfW, (German Agency),
  • New Development Bank (NDB)

These agencies help finance State Government various projects including Irrigation, Health, Water Supply, Forestry, Urban Development, Infrastructure, Energy, Agriculture and Rural Development (Poverty Alleviation Programmes).

The Government of India is releasing external financial assistance to the State on ‘Back to Back’ basis for the new projects sanctioned on or after 1.4.2005, as was recommended by the 12th Finance Commission. 

Financial year 2019-20

  • At the start of financial year 2019-20, there were 13 ongoing Externally Aided Projects in the State.
  • During the year, two new projects namely Rajasthan State Highways Development Program-II (World Bank) and Rajasthan State Highways Investment Program-Project-II (ADB) have been sanctioned and effective from 14 October, 2019 and 02 December, 2019 respectively
  • Additionally, two ongoing Projects namely Rajasthan Renewable Energy Transmission Investment Program-Project-I and Re-Organization Jodhpur Water Supply Project were completed in April, 2019 and September, 2019 respectively.
  • The outlay kept for ongoing EAPs in financial year 2019-20 was 5,080.92 crore, against which 33,688.92 crore expenditure incurred up to December, 2019.

Overview of Externally Aided Projects in Rajasthan

S. No. Agency EAP- Project
1 Asian Development Bank (ADB)
  • Rajasthan Urban Sector Development Program (RUIDP Phase-III)
  • Rajasthan State Highway Investment Programme-I
  • Jaipur Metro Rail Line-1 Phase B
  • Rajasthan Renewable Energy Transmission Investment Program
  • Rajasthan State Highway Investment Program- Project II (December 2019 – March 2024)

New Development Bank (NDB)

  • Rajasthan Water Sector Restructuring Project for Desert Areas – Tranche 1

3 The World Bank Group (WB)
  • Rajasthan Agriculture Competitiveness Project
  • Strengthening Public Financial Management in Rajasthan (July 2018 – March 2024)
  • Second Programmatic Electricity Distribution Reform Development Policy Loan (October, 2018 to September, 2019)
  • Rajasthan State Highway Development Programme-II (October 2019 – March 2024)
4 Japan International Cooperation Agency (JICA)
  • Rajasthan Forestry & Biodiversity Project Phase-II
  • Rajasthan Rural Water Supply and Fluorosis Mitigation Project -Nagaur
  • Rajasthan Water Sector Livelihood Improvement Project
5 KfW, (German Agency)
  • Intra State Transmission System in Rajasthan Under Green Energy Corridors Project
6 Agency Francaise De Development (AFD)
  • Re-organization Jodhpur Water Supply Project

**Reference data: Economic Review of Rajasthan 2019-20, Published February 2020

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