AMN /New Delhi
Cabinet Committee on Economic Affairs, CCEA has approved an initial corpus of 5000 crore rupees for Micro Irrigation Fund (MIF) with NABARD under Pradhan Mantri Krishi Sinchayee Yojana. The allocation of 2000 crore rupees will be utilised during 2018-19 and 3000 crore will be utilised during 2019-20.
NABARD will extend the loan to state governments during this period. Borrowings from NABARD shall be paid back in 7 years including the grace period of two years. The lending rate under MIF has been proposed at 3 percent lower than the cost of raising the fund by NABARD