The Union Finance and Corporate Affairs Minister Shri Arun Jaitley said that investment in irrigation projects essential to double the farmers income by 2022. He said that loan of ₹ 19,702 crore to National Water Development Agency (NWDA) for irrigation projects by NABARD, is a part of the vision of the Prime Minister Shri Narendra Modi to double the farmers’ income by 2022. Shri Jaitley said that providing assured irrigation to farmers is one of the important prerequisites to achieve that target. The Finance Minister said that this loan would be part of the Central share of assistance to State Governments and will ensure front loading of resources so that the identified incomplete irrigation projects under Pradhan Mandtri Krishi Sinchai Yojna (PMKSY) are executed in time. He further said that this unique initiative would help complete not only the irrigation projects but also the Command Area Development works which are central to ensure full utilisation of irrigation potential so created. He highlighted that the initiative would bring additional 76 lakh hectare area under irrigation and to a great extent, mitigate water scarcity, dependence on rain and drought situations in project areas. He appreciated the initiatives of the Ministry of Water Resources, River Development & Ganga Rejuvenation and National Bank for Agriculture and Rural Development (NABARD) He said that the Ministry of Finance is committed to support such endeavours. He advised the agencies to undertake very close monitoring of the progress of work to ensure timely completion of all the projects.

Speaking on the occasion, the Minister of Water Resources, River Development and Ganga Rejuvenation Sushree Uma Bharati, said that her Ministry is committed to ensure that the project works are completed by the State Governments as per schedule and exhorted them to complete the required formalities in time. She shared the vision of the Prime Minister to ensure ‘Har Khet ko Paani’ and “Per drop more crop” which the Ministry is trying to translate into reality. She emphasised that the irrigation potential would be enhanced through participation of farmers. She also highlighted a strong monitoring mechanism put in place to ensure that the money is effectively and optimally utilised.

Earlier, NABARD has set-up a Long Term Irrigation Fund (LTIF) as a sequel to the path breaking initiative announced by the Union Finance Minister Shri Arun Jaitley in this regard in his Budget Speech 2016-17. NABARD has sanctioned a loan of ₹ 19,702 crore to National Water Development Agency (NWDA), the agency of the Union Ministry of Water Resources, RD & GR, towards Central Government share in 50 identified irrigation projects from 11 States. This would help create additional irrigation potential of 39.14 lakh hectares under these projects in 11 States. Loan released by NABARD to NWDA would be disbursed to the respective State Governments as Central Share in the projects sanctioned.

NABARD today handed over the sanction letter of loan amounting to ₹ 19,702 crore and a cheque for ₹ 1,500 crore towards the First Instalment of loan disbursement to NWDA in the august presence of the Union Finance Minister Shri Arun Jaitley and Sushri Uma Bharati, Minister of Water Resources, River Development and Ganga Rejuvenation, (MoWR, RD & GR), at a function organised by NABARD in North Block, in national capital today to mark operationalisation of the LTIF. Dr. Sanjiv Balyan, Minister of State, Water Resources, River Development and Ganga Rejuvenation, Shri Brij Mohan Agrawal, Minister for Water Resources, Agriculture and Animal Husbandry, Government of Chhattisgarh and Shri Girish Mahajan, Minister, Water Resources, Government of Maharashtra also graced the occasion. The event was attended among others by the Senior officials of various Ministries of the Government of India and NABARD.

Dr Harsh Kumar Bhanwala, Chairman, NABARD said that besides supporting the central share component, NABARD would also be extending 15year loan support to the willing State Governments at reasonable rate of interest to meet their share in the identified irrigation projects. The total fund requirement is expected to be of the order of ₹ 78, 535 crore in the next four years up to 2020, with the shares of the Central And State Governments at ₹ 31,342 crore and ₹ 46,253 crore, respectively. He said that through LTIF the irrigation potential in the country was expected to go up by 11.50 % in the next four years.

Shri Shashi Shekhar, Secretary, Ministry of Water Resources, River Development and Ganga Rejuvenation informed that the programme will be implemented in a Mission mode and the Ministry was gearing-up for very close monitoring of this massive programme.

Irrigation funding mobilised under LTIF to front load central assistance and accelerate completion of identified irrigation projects. NABARD established a Long Term Irrigation Fund (LTIF) and sanctioned a loan to NWDA to finance Central assistance for 50 identified incomplete irrigation projects, enabling front loading of resources under PMKSY to complete project works and Command Area Development, with disbursement to States and NABARD offering long term loans to States for their shares, implemented in mission mode with strengthened monitoring.