Date – 17/05/2018: Pradhan Mantri Krishi Sinchayee Yojana: Cabinet approves Micro Irrigation Fund under NABARD

Date – 17/05/2018

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).

– 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.