Pradhan Mantri Krishi Sinchayee Yojana Current Affairs

Cabinet approves raising Rs. 9020 crore for Long Term Irrigation Fund

The Union Cabinet gave its approval for raising Extra Budgetary Resources of up to Rs, 9,020 crore for Long Term Irrigation Fund (LTIF) during the financial year 2017-18.

The funds will be raised by the National Bank for Agriculture and Rural Development (NABARD) through the issuance of Bonds at 6% per annum as per requirement. 

Utilization of Funds

The LTIF will be for the implementation of Accelerated Irrigation Benefits Programme (AIBP) works of 99 ongoing prioritised irrigation projects along with their command area development (CAD) works under the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY).

Background

Large number of major and medium irrigation projects taken up under the AIBP were languishing mainly due to inadequate provision of funds. To cater to the large fund requirement and ensure completion of these projects, the Union Finance Minister in his Budget speech 2016-17, had announced creation of dedicated LTIF in NABARD with an initial corpus of Rs. 20,000 crore for funding identified ongoing projects under PMKSY (AIBP and CAD). The corpus of LTIF was to be raised through budgetary resources and market borrowings to fast track implementation of incomplete major & medium irrigation projects.

Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)

PMKSY has been formulated amalgamating ongoing schemes viz. AIBP, Integrated Watershed Management Programme (IWMP) and On Farm Water Management (OFWM) component of National Mission on Sustainable Agriculture (NMSA). It is implemented by Ministries of Agriculture, Water Resources and Rural Development.

Objectives of PMKSY: (i) Achieve convergence of investments in irrigation at the field level, (ii) Expand cultivable area under assured irrigation (har khet ko pani), (iii) Enhance the adoption of precision-irrigation and other water saving technologies (More crop per drop), (iv) Improve on-farm water use efficiency to reduce wastage of water, (v) Enhance recharge of aquifers and (vi) Introduce sustainable water conservation practices.

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Union Government inks loan agreement with World Bank for Neeranchal National Watershed Project

Union Government has signed a loan agreement with World Bank for the Neeranchal National Watershed Project to improve watershed management in rural rain fed areas.

The loan credit will support the watershed activities of the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) in selected sites in 9 states. These states are Andhra Pradesh, Chhattisgarh, Telangana, Jharkhand, Gujarat, Maharashtra, Madhya Pradesh, Odisha and Rajasthan.

Key facts

  • World Bank will provide loan of US$ 178.50 million with a maturity of 25 years, including a 5 year grace period.
  • The loan has been sanctioned by the World Bank’s concessionary lending arm International Development Association (IDA).
  • It will give impetus to longstanding partnership between the World Bank and Union Government in the watershed management.

About Neeranchal National Watershed Project

  • The project is implemented by the Union Ministry of Rural Development over a six-year period (2016-21) to achieve objectives PMKSY.
  • It will support the PMKSY in hydrology and water management, agricultural production systems, capacity building and monitoring and evaluation.
  • It seeks to ensure access to irrigation to every farmland (Har Khet Ko Pani) and for efficient use of water (Per Drop More Crop).
  • The project was approved by the Union Cabinet in October 2015 with a total budget outlay of Rs.2142 crore. Of the total amount Government’s share was of Rs.1071 crore (50%) and the rest 50% of the World Bank.

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