ADB approves USD 42.2 million loan to develop bamboo industry in Northeast India

New Delhi [India], June 25 (ANI): The Asian Development Bank (ADB) has approved a USD 42.2 million Small Expenditure Financing Facility (SEFF) to support the development of the bamboo industry in India's northeastern region, with the aim of boosting agricultural productivity, strengthening rural livelihoods and reducing dependence on imports.
In a statement on Thursday, ADB stated that the facility will support community-based projects across six northeastern states -Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura.
The financing will be provided through multiple subloans that will support a range of activities aimed at improving the growth, usage and management of bamboo resources in the region. The project will also focus on promoting women's participation in the bamboo value chain.
ADB said the initiative will ensure employment opportunities for women and establish at least one women-led manufacturing facility in each of the six participating states.
"By harnessing the country's abundant bamboo resources and building private sector-led industrial value chains, ADB's financing will stimulate trade, investment, and infrastructure," said ADB Country Director for India Mio Oka.
"It will diversify income sources for rural households, reducing their dependence on natural hazard-sensitive crops and strengthening economic resilience," she added.
ADB noted that despite India holding 39 per cent of the world's forest bamboo resources, the country's bamboo value chain remains underdeveloped and continues to rely on imports.
The financing facility is aligned with the Government of India's National Bamboo Mission and is expected to strengthen bamboo cultivation, production and marketing activities.
According to the development bank, the project will help increase the income of bamboo producers while also improving access to finance for private investors and entrepreneurs operating in the sector.
The programme will also support capacity building for the National Bamboo Mission, State Bamboo Missions and technical institutions involved in the sector.
Other key components of the project include bamboo resource management and mapping, research and training activities, project design and procurement support, and the development of digital solutions across the bamboo value chain.
ADB said the initiative is aimed at creating a stronger bamboo-based industrial ecosystem in the northeastern region while generating employment opportunities and supporting sustainable economic growth. (ANI)