The Asian Bank will provide a $ 24.3 million loan for modernisation of Maharashtra's

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horticultural industry as part of a multi-tranche financing facility.

An agreement to this effect was signed between the government and the multilateral lending agency here today, an official release said.

"The government of India and the ADB today signed an agreement for the second tranche ($ 24.3 million) under the $ 170 million Agribusiness Infrastructure Development Investment Programme, which is a multi-tranche financing facility," it said.

Besides modernisation of Maharashtra's horticultural industries, the project loan is aimed at integrating small-scale farmers into agriculture value chains in the Nashik and Aurangabad-Amravati regions.

"The programme will build physical and institutional links along horticulture-integrated value chains, which include farmers, processors, agribusiness entrepreneurs and service providers, a central goal of the Indian government," the release said.

"This will help farmers, traders and other value chain stakeholders to improve their products and processes, become competitive and adapt to changes in end markets," it added.

This second tranche loan from the ordinary capital resources of ADB has a 25-year term, including a grace period of five years. The government of Maharashtra will provide counterpart funds of $ 6 million for a total second tranche project investment cost of $ 30.3 million.

The Department of Cooperation, Textiles and Marketing of Maharashtra is the executing agency for the project, which is scheduled for completion by 2015.