NABARD sanctions Rs. 19,702 crore loan to National Water Development Agency

The National Bank for Agriculture and Rural Development (NABARD) has sanctioned loan worth Rs. 19,702 crore to National Water Development Agency (NWDA).
The loan will be provided through NABARD’s Long Term Irrigation Fund (LTIF) for 50 irrigation projects from 11 States.
Key Facts

• This loan will be part of the Central share of assistance to State Governments.
• It will ensure front loading of resources so that the identified incomplete irrigation projects under Pradhan Mandtri Krishi Sinchai Yojna (PMKSY) are executed in time.
• Loan released by NABARD to NWDA would be disbursed to the respective State Governments as Central Share in the projects sanctioned.

The LTIF was set up by NABARD as a sequel to the initiatives announced by the Union Finance Minister Arun Jaitley for irrigation purpose in his Budget Speech 2016-17.
What will be significance of these irrigation projects?
The loan funds for these irrigation projects will help to create additional irrigation potential of 39.14 lakh hectares in 11 States. Thus, it will support government’s vision to double the farmers’ income by 2022 as providing assured irrigation to farmers is one of the important prerequisites to achieve that target.

About National Water Development Agency (NWDA)

• NWDA is the agency of the Union Ministry of Water Resources. It was set up in July, 1982 as autonomous society under the Societies Registration Act, 1860.
• It was established to carry out the water balance and other studies on a scientific and realistic basis for optimum utilisation of Water Resources of the Peninsular rivers system.
• Besides it was tasked to prepare feasibility reports and give concrete shape to Peninsular Rivers Development Component of National Perspective.
• In 1990, it was also entrusted with the task of Himalayan Rivers Development Component of National Perspectives.
• Recently, the functions of NWDA have been further modified and the work of preparation of detailed Project Reports (DPR) of various link proposals and Pre-feasibility Reports.
• It has been also entrusted to prepare feasibility reports of intra-State links as proposed by the States.

Month: Current Affairs - October, 2016