Explanation:

The Government of India, the State Governments of Karnataka and Odisha and the World Bank have signed a loan agreement of 115 million dollars for implementation of "Rejuvenating Watersheds for Agricultural Resilience through Innovative Development" (REWARD) Project. 

• The Government of India has committed to restoring 26 million hectares of degraded land by 2030 and doubling farmers income by 2023. 
• Effective watershed management can help enhance livelihoods in rainfed areas, while building a more resilient food system. 
• In this context, the new program will help the participating state governments in their efforts to transform watershed planning and execution and adopt science-based planning that could be replicated across the country. 
• It will also help the participating and others states to adopt new approaches to watershed development. 
• The International Bank for Reconstruction and Development (IBRD) financing will support Karnataka with 60 million dollars (INR 453.5 crore), Odisha with 49 million dollars (INR 370 crore), and the remaining 6 million dollars (INR 45.5 crore) will be for the central government's Department of Land Resources. 
• The 115 million dollars (INR 869 crore) loan has a maturity of 15 years, including a grace period of 4.5 years.

Hence option 2nd is correct.