The Union Cabinet on Wednesday 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.
The Micro Irrigation Fund (MIF), set up under the National Bank For Agriculture And Rural Development (NABARD), seeks to provide states financial assistance on concessional rate of interest to promote micro-irrigation – currently, 10 million hectares is under micro-irrigation as against the potential of 70 million hectares.
The lending rate under the MIF has been proposed at three per cent lower than the cost of raising the fund by NABARD, an official statement said. The dedicated fund would supplement the efforts of Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) and help bring about 10 lakh hectares under micro-irrigation, it added. For the current fiscal, Rs 2,000 crore has been allocated, while Rs 3,000 crore has been earmarked for 2019-20. Read More