Washington: The World Bank has approved an assistance package of US$ 485 million to Tamil Nadu so that the state can increase its agricultural productivity by modernising its irrigation infrastructure.

The Tamil Nadu Irrigated Agriculture Modernisation and Water-Bodies Restoration and Management Project is designed to modernise irrigation systems covering over 600,000 hectares in 63 selected sub-basins throughout the State.

"It proposes an integrated sub-basin approach to synergise the activities of multiple agencies involved with irrigation, on-farm development, agriculture, horticulture, marketing, livestock, fisheries, and applied research" the Bank has said in a release yesterday.

The Bank has further pointed out that home to about 62 million people living in 17 river basins the agriculture sector in Tamil Nadu faces major constraints due to poor state of irrigation infrastructure, water scarcity, groundwater overdraft, and pollution of surface and ground waters.

About 20-30 per cent of the rural population is classified poor and is heavily dependent on agricultural wages.

"Improved performance in agriculture and related areas can be the key to unlocking the tremendous potential of Tamil Nadu's rural areas," said Fayez Omar, Senior Manager, India Programme and acting World Bank Country Director for India.

"This project will help improve productivity of water in irrigated agriculture and promote diversification into higher-value, less-water intensive crops," he said.