A $100 million loan from the World Bank has been announced for Odisha in order to help the state improve its early warning systems for better disaster response and expand its social protection coverage for low-income and vulnerable households through digital platforms.
A brief about The World Bank announces a loan of $100 million to Odisha
Based on the technical assessment, which paints an unsettling picture regarding Odisha’s success in reducing poverty among tribal people, the loan has been approved by the World Bank’s Board of Executive Directors.
The World Bank stated in a statement that the coastal State was susceptible to natural disasters, with cyclones typically striking the State every 15 months and tsunami risk due to its 480 km of coastline.
“The Odisha State Capabilities and Resilient Growth Program (OSCRGP) would boost the State’s data gathering efforts for better resilience planning and help reduce losses caused by natural disasters through a multi-hazard digital warning system,” it stated.
The scheme, according to the world’s top lending organisation, would also expand social protection coverage through a cash transfer programme, with coastal and underprivileged towns getting aid via online delivery systems (Mo Sewa Kendras).
According to the World Bank, the $100 million loan from the International Bank for Reconstruction and Development (IBRD) uses the Programme-for-Results (PforR) financing instrument, which links fund disbursement directly to the achievement of specific programme results. The programme had a 12.5-year maturity with a three-year grace period.
According to the WB’s technical report, nearly one in three people in the State were living in poverty, and the rate of poverty reduction varied significantly between groups and geographical areas. “Poverty reduction among the Scheduled Tribes (ST) has been much slower than other groups,” the report states. As a result, poverty is more prevalent in the south and west, which are home to a sizable portion of the ST population. Odisha has the highest poverty rate in the nation, with 63% of STs living in poverty.
“Although Odisha has achieved outstanding progress in reducing infant mortality, the State’s infant mortality rate (IMR) still ranks among the highest in the nation at 44 deaths per 1,000 live births. Stunting rates, which indicate malnutrition, are still below the national average but are significant for the bottom 40% of households, according to the technical assessment.
Several cash-transfer programmes were operating without an overall policy or administrative coordination, the World Bank said, leading to duplication of administrative tasks and expenses.
“Fragmented beneficiary records and weak connections across beneficiary identification systems are characteristics of schemes. The prospect of making direct transfers to recipients is frequently eliminated by insufficient linkages to payment systems, it stated.
