Shimla: The World Bank has agreed in principle to provide additional funding of USD 37 million (Rs.231.25 crore) for a watershed project in Himachal Pradesh, Chief Minister Prem Kumar Dhumal said on Sunday. The additional funding proposal has been provided under the Himachal Pradesh Mid-Himalayan Watershed Development Project, said an official statement quoting Dhumal.

The project aims to reverse the process of degradation of the natural resource base and improve the productive potential of natural resources and incomes of the rural households in the project areas using the community-driven development approach, he said.

"It will also focus on water harvesting to increase potential area under irrigation for diversification of agriculture and horticulture besides soil and water conservation," Dhumal said.

The project will cover 704 gram panchayats located in 43 blocks spread over in 10 districts of the state.

(Agencies)

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