NABARD sanctions Rs 19702 crore loan to NWDA for 50 irrigation projects under Long Term Irrigation Fund (LTIF)

As a sequel to the path breaking initiative announced by Hon' ble Union Finance Minister Shri. Arun Jaitley in his Budget speech 2016-17 to set up Long Term Irrigation Fund (LTIF) in National Bank for Agriculture and Rural Development (NABARD), NABARD has sanctioned a loan of Rs 19,702 crore to National Water Development Agency (NWDA), the agency of Ministry of Water Resources, RD & GR, towards central government share in 50 identified irrigation projects from 11 states. This would help create additional irrigation potential of 39.14 lakh hectares under these projects in 11 states.

NABARD handed over the sanction letter of loan amounting to Rs 19,702 crore and a cheque for Rs 1,500 crore towards first instalment of loan disbursement to NWDA Top officials of the Government of India and Directors of the Board of NABARD were present on the occasion.

 

Loan released by NABARD to NWDA would be disbursed to the respective State Governments as central share in the projects sanctioned.

Speaking on the occasion, Shri Arun Jaitley said that this development was a part of the vision of Hon'ble Prime Minister to double farmers' income by 2022, for which providing assured irrigation to farmers was one of the important prerequisites. The loan towards the central share of assistance to state governments will ensure front loading of resources so that the identified incomplete irrigation projects under Pradhan Mandtri Krishi Sinchai Yojna [PMKSY] are executed in time. He further stated that this unique initiative would help complete not only the irrigation structures but also the Command Area Development works which are central to ensuring full utilization of irrigation potential created. He highlighted that the initiative would bring additional 76 lakh ha area under irrigation and to a great extent mitigate water scarcity and drought situations in project areas. He appreciated the initiative of the Ministry of Water Resources, River Development & Ganga Rejuvenation and NABARD and indicated that Ministry of Finance is committed to support this endeavor. He advised the agencies to undertake very close monitoring of the progress of work to ensure timely completion of projects.

Sushree Uma Bharati, Hon' ble Minister of Water Resources, River Development and Ganaga Rejuvenation said that she was commited to ensure that the project works are completed by the state governments as scheduled and exhorted them to complete the required formalities in time. She shared the vision of Hon'ble Prime Minister to ensure 'Har Khet ko Paani' and Per drop more crop which the Ministry is endeavoring to translate into reality. She emphasized that the irrigation potential would be enhanced through participation of farmers. She also highlighted a strong monitoring mechanism put in place to ensure that the money is effectively utilized.

Dr Harsh Kumar Bhanwala, Chairman, NABARD said that besides supporting the central share component, NABARD would also be extending 15 year loan support to the willing state governments at reasonable rate of interest to meet their share in the identified irrigation projects. The total fund requirement is expected to be of the order of Rs 78, 535 crore in the next four years up to 2020, with the shares of the central and state governments at Rs 31,342 crore and Rs 46,253 crore, respectively. He said that through LTIF the irrigation potential in the country was expected to go up by 11.50 % in the next four years.

Shri Shashi Shekhar, Secretary, Ministry of Water Resources, River Development and Ganaga Rejuvenation informed that the programme will be implemented in a Mission mode and the ministry was gearing up for very close monitoring of this massive programme.

Powered by Capital Market - Live News