Rural Infrastructure Schemes

Govt okays Rs 5,000 crore micro-irrigation fund


Note4students

Mains Paper 3: Agriculture | Different types of irrigation and irrigation systems storage

From UPSC perspective, the following things are important:

Prelims level: Benefits of using micro-irrigation

Mains level: Specially mentioned in the mains syllabus.


News

Fund for micro-irrigation project

  1. The government has approved a dedicated Rs 5,000 crore fund to bring more land area under micro-irrigation as part of its objective to boost agriculture production and farmers income

Particulars of the fund

  1. The fund has been set up under NABARD
  2. It will provide this amount to states on concessional rate of interest to promote micro-irrigation
  3. An allocation of Rs2,000 crore has been made for this fiscal while Rs3,000 crore has been earmarked for the 2019-20 fiscal
  4. NABARD will extend the loan to state governments during this period
    More about the fund
  5. The dedicated fund would supplement the efforts of PMKSY programme and help bring about 10 lakh hectares under micro-irrigation
  6. The fund will facilitate States to mobilise resources for their initiatives, including additional (top up subsidy) in implementation of PMKSY-PDMC to achieve the annual target of about 2 million hectares per year during the remaining period of 14th Finance Commission

Low interest rate

  1. Borrowings from NABARD shall be paid back in seven years including the grace period of two years
  2. The lending rate under MIF has been proposed at 3% lower than the cost of raising the fund by NABARD
  3. This cost would be met from the ongoing scheme of PMKSY-PDMC (per drop more crop component) by amending the existing guidelines

Low coverage: Micro-Irrigation

  1. It currently has a coverage of only 10 million hectares as against the potential of 70 million hectares
Posted on | Live Mint

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