The BJP-led government in Maharashtra expects to give a much needed boost to the completion of pending irrigation projects as finance minister Arun Jaitely in his Budget speech reiterated the government's commitment to provide funds through Long Term Irrigation Fund (LTIF) established in National Bank for Agriculture and Rural Development (Nabard). Of the 99 irrigation projects identified under LTIF, Nabard has sanctioned a total loan of Rs 12,773 crore towards Maharashtra's share under the Prime Minister's Krishi Sinchayi Yojana (PMKSY) for the completion of 26 long-pending projects (which account for 30 per cent). The loan is being disbursed at 6 per cent rate of interest.
State water resources minister Girish Mahajan told DNA, "Of the Rs 12,773 crore sanctioned by Nabard, Maharashtra has so far availed Rs 3,500 crore. In addition to the Nabard loan, the state has been granted central grant of Rs 3,860 crore for the 26 projects to be completed in a time-bound manner. This is the largest ever loan sanctioned by Nabard to Maharashtra's irrigation sector.'' He also informed that Jaitely has reiterated to provide funds under LTIF but also announced to expand its scope to cover specified command area development projects.
Furthermore, the state soon expects Centre's approval for its proposal to provide a total of Rs 20,500 crore comprising Rs 15,000 crore as loan from Nabard at 6 per cent and the balance as the Central grant as a special case for the completion of 112 irrigation projects in drought-prone areas and districts which have reported higher farmers suicides. "Of the 112 projects, about 92 are minor irrigation projects and the balance are major projects. The Centre has already given its in principle nod for state's proposal and we expect final approval soon,'' Mahajan said.
Mahajan said apart from central grant and Nabard loan, the state government is mulling multiple options to complete about 312 pending irrigation projects with total investment worth Rs 58,000 crore.
