The development objective of the Orissa Community Tanks Management Project for India is for selected tank based producers to improve agricultural productivity and water user associations to manage tank systems effectively. The project envisaged the rehabilitation of 900 tanks that provide irrigation for 120 thousands hectares. Under the restructuring, only 320 tanks will be rehabilitated covering 60 thousand hectares albeit with some additional irrigation work and more intensive work on institutional strengthening and agricultural livelihood services in the project area. The restructured project will necessitate the cancellation of US$ 35.06 million (including US$ 17.53 million from the International Bank for Reconstruction and Development (IBRD) loan and US$ 17.53 million from International Development Association; (IDA) credit). The outcomes of the project should be achieved for the newly defined, reduced project area. As a result of more intensive assistance to Water Union Associations and Livelihood Community Services, some project targets have been marginally increased. In the context of the restructuring, the project implementation manual will be revisited so as to promote a greater convergence between the project and the RRR scheme. As a result of this convergence, tendering/contracting arrangements will be similar in both cases, at least within the thresholds established by the legal agreements. Moreover, the assistance provided on institutional issues under the project will be gradually extended to RRR schemes thereby making sure that lessons on participatory water management practices are adopted throughout the state.