The World Bank will provide $130 million for initiatives to empower rural communities and

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improve livelihood opportunities in northeastern states.

An agreement to this effect was signed between the multilateral financial institution and the government here today, according to an official release.

The North-East Rural Livelihoods Project (NERLP), as the programme is christened, is aimed at enhancing the livelihood of the rural poor, especially women, unemployed youth and disadvantaged sections in nine districts of four states.

These are Aizawl and Lunglei in Mizoram, Peren and Tuensang in Nagaland, the South, West and East of Sikkim; and the West and North districts of Tripura.

Almost 35 per cent of the rural population in the northeastern states are below the poverty line. The region is considered among the most backward in the country in economic terms.

"The NERPL seeks to develop an institutional platform for the communities, which will help them link up with the private sector, public sector and civil society and to acquire the institutional, technical and financial capacity needed for improving their livelihoods," the statement said.

It also plans separate activities for skill development and job placement.

Among the livelihood opportunities envisaged under the scheme are natural resource management activities such as forest management, non-timber forest produce storage and processing, horticulture, preservation of riverine fishes, water harvesting and recharging of ground/surface water in the villages.

In addition, community-based infrastructure activities like upgrading small agricultural link roads, micro hydro-power schemes and wind-cum-solar power mills are also planned.

The project comprises four main components -- social empowerment, economic empowerment, partnership development and project management.

It will seek to develop partnerships with various formal financial intermediaries like microfinance institutions, commercial banks and financial institutions like NABARD and Small Industries Development Bank of India (SIDBI) to allow rural communities to access technical and marketing support.

The loan from the International Development Association (IDA), the World Bank's concessionary lending arm, has a tenure of 25 years, besides a five-year grace period.