Cabinet approves Micro Irrigation fund under Nabard | Current Affairs, Current Affairs 2018

Cabinet approves Micro Irrigation fund under Nabard

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The Cabinet Committee on Economic Affairs chaired by the Prime Minister  Narendra Modi today has approved an initial Corpus of Rs 5,000 crore for setting up of a dedicated “Micro Irrigation Fund” (MIF) with NABARD under Pradhan MantriKrishiSinchayeeYojana (PMKSY).

The dedicated Micro Irrigation Fund would supplement the efforts of Per Drop More Crop Component (PDMC) of Pradhan MantriKrishiSinchayeeYojana in an effective and timely manner. With the additional investment for micro irrigation accessing MIF, innovative composite/ commodity/ community/ cluster based micro irrigation projects/ proposals may bringabout 10 lakh ha. The Fund will facilitate States to mobilise resources for theirinitiatives, including additional (top up subsidy) in implementation of PMKSY-PDMC toachieve the annual target of about 2 Million ha/year during the remaining period of 14thFinance Commission under Per Drop More Crop Component of PMKSY as recommended by the Group of Secretaries.

States may access MIF for innovative integrated projects, including projects in the Public Private Partnership (PPP) mode and also for incentivizing micro irrigation through an additional (top up) subsidy over and above the one available under PMKSY-PDMC Guidelines and for covering additional areas. It should not be a substitute for State’s share in PMKSY-PDMC. Farmers Producers Organization (FPO)/Cooperatives/State Level Agencies can also access the funds with State Government Guarantee or equivalent collateral. Farmers Co-operatives may access this fund for innovative cluster based Community Irrigation Projects.

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