Nabard is holding talks with these German institutions for continuation of financial aid for the ongoing watershed development programme and greenfield projects, sources said. It is also making a case for aid to such programmes in Andhra Pradesh, Gujarat and Orissa.

While forming the bilateral agreement between India and Germany for development aid, Nabard was appointed the nodal agency to disburse the fund. It helps local organisations prepare the project proposal and also supervise implementation.

Representatives of the two German banks, which have been providing grants for the Indo-German Watershed Development programme (IGWDP) and Indo-German Tool Room (IGTR) projects, recently visited India to appraise the plans.

InMaharashtra, some of the areas where these projects are being implemented in phases include Mendhwan, Sangamner, Pimpalgaon Wagha, Bhorye, Vaiyu, Babulgaon and Konossi.

The aid expected from the German agencies is over DM65 million, of which DM12 million for Phase 1 has already been disbursed. A joint appraisal mission from GTZ and KFW has agreed in-principle to forward DM25 million for Phase 2, sources said, adding that another DM28 million for Phase 3 of the programme is being negotiated.

The IGWDP, launched in Maharashtra, is designed to develop and sustain village economy with emphasis on self-help, environment protection and better living standards.

Nabard and Watershed Organisation Trust (WORT), a support organisation to assist voluntary organisations (NGOs), jointly administer the execution of these projects and provide technical, social and managerial support.

Apart from IGWDP, the German government is also providing around DM80 million for toolroom projects in Ahmedabad, Aurangabad, Indore,Lucknow and Ludhiana as part of the Indo-German technical cooperation programme.

These toolrooms provide training and technical knowhow design, manufacturing and die technology. The projects are implemented in coordination with the Small Industries Development Organisation (Sido) as the Indian partner. As per the agreement, while the German government is to provide financial and technical supports, land and other infrastructure facilities are to be arranged by the Indian agencies.

These centres are to make small- and medium-sized enterprises in the plastic and metal processing industry competent both here and abroad. The large Indian small-scale industry takes a beating in the international market due to strict quality standards and price factors.

These institutes also offer cunsultancy services to small-scale industrial units for improving productivity. The well-equipped design centres at these units with CAD/CAM software facility undertake the design of complicated tooling.

The toolroom unit atAurangabad, Maharashtra, has developed into a modern industrial centre and serves several units in the state. It plans to expand its services by bringing in advanced technology and equipment.