Memorandum of Agreement was signed between Ministry of Water Resources, River Development and Ganga Rejuvenation and NABARD for providing central assistance to 99 prioritized irrigation projects under PMKSY in New Delhi.
The Union Cabinet on July 27, 2016 had approved the Establishment of Mission for completion of 99 prioritized projects and its funding arrangement through NABARD.
The Finance Minister in his budget speech during 2016 has announced for creation of dedicated Long Term Irrigation Fund (LTIF) in NABARD with an initial corpus of about Rs. 20,000 Crore and an amount of Rs.12517 crore has been provided as budgetary resources and market borrowings during 2016-17.
Keeping in view of the budgetary constraints, it has been decided to borrow Central share/Assistance (CA) from NABARD as per year-wise requirements which could be paid back in 15 years’ time keeping a grace period of 3 years.
Further, the proposal envisages that the State Governments, if required, may borrow funds from NABARD for the State Share.