The interest underwrite loans are being provided under Micro Irrigation Fund (MIF) created with National Bank for Agriculture and Rural Development (NABARD – which is the finance institution fully owned by Government of India, solely works in the field of credit for agriculture and other economic activities in rural areas in India) for implementing micro-irrigation projects.
Also Read: Irrigation Techniques & Technologies
This corpus fund of Rs 5,000 crore was in used in 2019-20 fiscal year with a goal to facilitate states to avail subsidised loans or expanding coverage of micro irrigation. In a press release, the ministry mentioned the steering committee of MIF has approved projects for loan worth Rs 3,971.31 crore.
Out of this sum, maximum of Rs 1,357.93 crore loan has been permitted for Tamil Nadu, followed by Rs 790.94 crore for Haryana, Rs 764.13 crore for Gujarat, Rs 616.13 crore for Andhra Pradesh, Rs 276.55 crore for West Bengal, Rs 150 crore for Punjab and Rs 15.63 crore for Uttarakhand states, it mentioned.
Amount release so far
However, NABARD which is an apex development finance institution fully owned by Government of India, has up to now sectioned a complete loan amount of Rs 1,754.60 crore to the states. Of this, about Rs 659.70 crore has been released to Haryana, Tamil Nadu and Gujarat states.
Nearly about Rs 616.13 crore has been released to Andhra Pradesh, Rs 937.47 crore to Tamil Nadu, Rs 21.57 crore to Haryana and Rs 179.43 crore to Gujarat up to now, it added.
Per Drop More Crop
Under the MIF, subsidised loans are offered for not solely taking over particular and progressive projects but in addition for incentivising micro irrigation beyond the provisions available under Pradhan Mantri Krishi Sinchai Yojana – Per Drop More Crop to encourage farmers to put in micro irrigation systems.