NABARD Current Affairs

Pradhan Mantri Krishi Sinchayee Yojana: Cabinet approves Micro Irrigation Fund under NABARD

The Cabinet Committee on Economic Affairs (CCEA) approved initial corpus of Rs.5,000 crore for setting up of dedicated Micro Irrigation Fund (MIF) in NABARD (National Bank for Agriculture and Rural Development) under Pradhan Mantri Krishi Sinchayee Yojana (PMKSY).

Key Facts

The allocation of MIF under PMKSY will be made in instalments of Rs 2,000 crore and Rs 3,000 crore in 2018-19 and 2019-20. Under it, NABARD will extend loans to state governments during this period. The lending rate under MIF has been proposed at 3% lower than cost of raising fund by NABARD. States will pay back loans in total seven years period, including grace period of two years. The total financial implication on interest subvention from MIF will be about Rs. 750 crore.

Benefits

The dedicated MIF will supplement efforts of Per Drop More Crop (PDMC) Component of PMKSY in an effective and timely manner. It will help to bring about 10 lakh ha of land under irrigation through innovative composite, community and cluster based micro irrigation projects with additional investment in MIF.

The MIF will facilitate states to mobilise resources for their initiatives, including additional (top up subsidy) in implementation of PMKSY-PDMC to achieve annual target of about 2 Million ha per year during remaining period of 14th Finance Commission under PDMC component of PMKSY as recommended by Group of Secretaries.

Implementation Strategy

States may access MIF for innovative integrated irrigation projects, including projects in Public Private Partnership (PPP) mode. They may also use it for incentivizing micro irrigation through additional (top up) subsidy over and above one available under PMKSY-PDMC Guidelines and for covering additional areas.

Farmers Producers Organization (FPO), Cooperatives and State Level Agencies can also access funds with Guarantee of State Government or equivalent collateral. Farmers Co-operatives can also access this fund for innovative cluster based Community Irrigation Projects.

Advisory Committee will be constituted to provide policy direction and ensure effective planning, coordination and monitoring projects along with Steering Committee for examining and approving these projects from state governments.

Coverage

Micro Irrigation Fund (MIF) will have pan India coverage. States lagging behind in adoption of micro irrigation will be encouraged to take advantage of fund for incentivizing farmers. Besides, community driven and innovative projects will be taken up by state will be provided loans to bring additional coverage of micro irrigation.

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

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

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North Koel Reservoir Project: Water Resources Ministry ink MoU with Bihar and Jharkhand

The Union Ministry of Water Resources, River Development and Ganga Rejuvenation has inked Memorandum of Understanding (MoU) with Bihar and Jharkhand for completion of balance works of North Koel reservoir project.

Moreover, supplementary Memorandum of Agreement (MoA) was signed between Ministry of Water Resources, National Water Development Agency, NABARD with both states for funding under Long Term Irrigation Fund (LTIF) for the project.

Funding

The project is scheduled to be completed in 30 months at the estimated cost of Rs. 1622.27 crores. Of this Rs. 1013.11 crores will be borne by Union Government as grant from LTIF under Pradhan Mantri Krishi Sinchai Yojana (PMKSY). I60% will be financed by Central Government from LTIF and remaining 40% of cost will be borne by the States through loan financed by NABARD.

North Koel Reservoir Project

The project is situated on North Koel river, tributary on Sone River. It aims to provide irrigation to 111,521 hectares of land annually in most backward and drought prone areas in Jharkhand and Bihar.

The construction of the projected originally had started in 1972 and continued till 1993 when it was stopped by the Bihar forest department over environmental concerns.

The Mandal dam as part of the project had threatened to submerge portions of the Palamau Tiger Reserve and Betla National Park. The National Wildlife Board (NWB) had cleared the project in June 2017 with certain conditions.

North Koel River

North Koel River rises on Ranchi plateau in Jharkhand. It joins the Sone River (only right bank tributary of Ganga River) a few miles north-west of Haidarnagar. Its principal tributaries are the Auranga and the Amanat. It meanders through the northern part of Betla National Park.

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