Mumbai, Dec 26: To speed up the stranded irrigation project in the state, Maharashtra government decide to accept the financial assistance from NABARD to get the 23 irrigation projects on-board.
According to Government Resolution dated on 23rd December 16 the financial institution has sanctioned the funding for 23 irrigation projects in the form of long-term loan. The document further stated that the decision would bring in Rs 7,242.74 crore for the completion of irrigation projects.
The GR further stated that National Bank for Agriculture and Rural Development (NABARD) would charge an annual interest of 6 per cent over the loan.
According to state government officials the government would get a grace period of first three years for the completion of pending projects. NABARD will charge an annual interest of 6 per cent over the loan. The government has been exempted from immediate payback of instalments for three years.
Commenting on the government’s decision senior officer from state water resources department said, "It is expected that the grace period would be used by the state government to expedite the procedures of pending permissions and start the pending works. This would enable the state to bring more area under irrigation and with more yield from farmers, a small amount on water tax can be collected.”
According to GR NABARD has permitted a period of 15 years for completion of all the pending projects. After the completion, there will be a period of 15 years for repayment of the loan amount. Government will have to produce a 'completion certificate' to NABARD after the completion of pending irrigation project.