NABARD Current Affairs

CCEA approves Dairy Processing & Infrastructure Development Fund

The Cabinet Committee on Economic Affairs (CCEA) approved Dairy Processing & Infrastructure Development Fund (DIDF) Scheme with an outlay of Rs 10,881 crore to boost dairy sector.

It will be managed by National Dairy Development Board (NDDB) and shall be implemented from 2017-18 to 2028-29. Initially, Rs.8,004 crore loan will be provided by NABARD to National Dairy Development Board (NDDB)and National Dairy Development Cooperation (NDDC).

Key Facts

Under this scheme, NCDC and NDDC will be used to provide loan for building an efficient milk procurement system and other processing infrastructure. Loan will be provided for putting in place an efficient milk procurement system by setting up of chilling infrastructure and installation of electronic milk adulteration testing equipment. It will be also used for creation, modernisation and expansion of processing infrastructure and manufacturing faculties for value-added dairy products.

Beneficiaries: Initially, loan under DIDF will be given to 39 profit-making milk unions of 12 states. Other milk cooperatives can apply for loan under DIDF in subsequent years after they become eligible on basis of their net worth and profit levels. Milk unions, multi-state milk cooperatives, state dairy federations, milk producer companies and NDDB subsidiaries can also avail of loan after meeting the eligibility criteria.

Interest Rates: The loans under DIDF will have interest rate of 6.5% per annum with repayment period of 10 years with initial 2 years of moratorium. The state government will be guarantor of loan repayment. If the end user is not able to contribute its share for sanctioned project, state will contribute the same.

Benefits from DIDF: The investment in diary sector will benefit 95,00,000 farmers in about 50,000 villages. It will help for additional milk processing capacity of 126 lakh litre per day, milk chilling capacity of 140 lakh litre per day, milk drying capacity of 210 MT per day. It will also support installation of 28000 Bulk Milk Coolers (BMCs) along with electronic milk adulteration testing equipment and increase value added products manufacturing capacity of 59.78 lakh litre per day of milk equivalent.

Employment Generation Potential: The DIDF scheme will generate direct (40,000 people) and indirect employment opportunities (2 lakh) for skilled, semi-skilled and unskilled manpower on account of expansion of milk and milk product marketing operations.

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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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