The Centre released Rs 1,982 crore for the multipurpose Polavaram irrigation project in Andhra Pradesh on December 26, 2016.The funding is being done through NABARD, which has now started funding irrigation projects. NABARD sanctioned the long term irrigation fund under Prime Minister Krishi Sinchayee Yojana.
- Finance Minister Arun Jaitley handed over the cheque to Andhra Pradesh Chief Minister Chandrababu Naidu at a function in New Delhi. Mr Jaitley also handed over cheques for Rs 463 crore rupees to Gujarat and Rs 756 crore rupees to Maharashtra for state projects.
About the project
Polavaram project will provide irrigation facilities for over 7.20 lakh acres. It would also provide for 80 TMC of Godavari water to Krishna River and 23.44 TMC of Godavari water for the industries in and around Vishakhapatnam.
- The project is likely to be completed by 2018.
- Mr Jaitley said that the Government is giving top priority to irrigation projects. The investment in manufacturing and other sectors yields the returns after long period but in the case of irrigation, the results start showing in the next season.
- The Finance Minister also stated that after the division of Andhra Pradesh, doubts were expressed by the people of the newly created Andhra Pradesh that the state is being discriminated due to economic disadvantage. But with the irrigation project the Centre has fulfilled its commitment made in the Andhra Pradesh Reorganization Act of 2014.
NABARD sanctions loans worth Rs 35,322 crore under Long Term Irrigation Fund
National Bank for Agriculture and Rural Development (NABARD) on December 26 revealed that so far it has sanctioned loans worth Rs 35,322 crore under Long Term Irrigation Fund (LTIF).
- LTIF was announced in the Budget 2016 -17 and set up with an initial corpus of Rs 20,000 crore. The bank has disbursed Rs 5,200 crore under the scheme.
- LITF initiative would ensure doubling of farmers’ income by 2022 under the ambitious Pradhan Mantri Krishi Sinchayee Yojana (PMKSY).
- The initiative would not only bridge the gap between irrigation potential created and irrigation potential utilized, but it would also ensure that scarce water resource is utilized very efficiently due to addition of command area development component.
- According to NABARD, the total fund requirement under the scheme is Rs 77,595 crore for four years of which the share of the central government is Rs 31,343 crore and that of states is Rs 46,253 crore.
- Harsh Kumar Bhanwala, chairman, NABARD said that the budget would be achieved very quickly only because of mission mode approach, rigorous monitoring and excellent co-ordination among all concerned ministries and NITI Aayog.
- Loans have been sanctioned to Gujarat (Rs 3,611 crore) and Maharashtra (Rs 7,242 crores). NABARD also handed over the sanction letter for Rs 2,981 crore to National Water Development Agency (NWDA) under the ministry of water resources.
- As per the cabinet, there still remain 99 incomplete irrigation projects for funding in 18 states with a potential irrigation of 76 lakh hectares.
- Finance minister Arun Jaitley noted that while in the last six decades the cumulative area brought under irrigation was only 65 million hectare, under LTIF initiative, additional 11.7% area would be brought under irrigation in a short span of four years.
- Minister of water resources, river development and ganga rejuvenation Uma Bharti has appealed to other states to complete necessary formalities and avail loans under this facility.
National Bank for Agriculture and Rural Development (NABARD) is an apex development bank in India. The Bank has been entrusted with “matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas in India”.
- NABARD is active in developing financial inclusion policy and is a member of the Alliance for Financial Inclusion
- Chairperson: Harsh Kumar Bhanwala
- Headquarters: Mumbai
- Founded: July 12, 1982, India