Government of India on 25 October 2013 signed an agreement with World Bank for credit of 360 million US Dollar for the second phase of Uttar Pradesh Water Sector Restructuring Project.

The agreement was signed by Nilaya Mitash, Joint Secretary in the Ministry of Finance, Government of India and Country Director of the World Bank, Onno Ruhl. Similarly the Project Agreement was signed by Deepak Singhal, Principal Secretary, Department of Irrigation on behalf of the Government of Uttar Pradesh. 

The objective of the project is to support the State on capacity building of Water Users Association, rehabilitation and modernization of irrigation, development of Basin River planning strategies and flood management systems.

The project has six main components:
1.Strengthening of State Level Water Institutions and Inter Sector Coordination.
  2.Modernization and Rehabilitation of Irrigation and Drainage Systems.
  3.Consolidation and Enhancement of Irrigation Institution Reforms.
  4.Enhancing Agriculture Productivity and On-Farm Water Management .
  5.Feasibility studies and Preparation Activities for the Next Phase.
  6.Project Coordination and Monitoring.
 
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