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16 May 2018
 |
| Agriculture (The Total Investment & Insurance
Solutions) |
The Union Cabinet on Wednesday approves corpus of Rs .5,000 crore for setting
up of a dedicated “Micro Irrigation Fund” (MIF) with NABARD under Pradhan
Mantri Krishi Sinchayee Yojana (PMKSY).
The allocation of Rs.
2,000 crore and Rs. 3,000 crore will be utilised during 2018-19 and 2019-20
respectively. NABARD will extend the loan to State Governments during this
period. Borrowings from NABARD shall be paid back in 7 years including
the grace period of two years, a government release said.
The lending rate under
MIF has been proposed at 3 percent lower than the cost of raising the fund by
NABARD. This cost shall be met from the ongoing scheme of PMKSY-PDMC by
amending the existing guidelines. The total financial implication on interest
subvention comes to about Rs 750 crore, the release said..
States may access MIF for innovative integrated projects, including projects in
the Public Private Partnership (PPP) mode and also for incentivizing micro
irrigation through an additional (top up) subsidy over and above the one
available under PMKSY-PDMC Guidelines and for covering additional areas. It
should not be a substitute for State's share in PMKSY-PDMC.
The Cabinet also
proposed to constitute an Advisory Committee to provide policy direction and
ensure effective planning.
“With the operation of
MIF, it is expected that the States which are lagging behind in adoption of
Micro Irrigation would also be encouraged to take advantage of the fund for
incentivizing farmers as being done by the good performing States,” government
said.The Total Investment &
Insurance Solutions
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