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The Maharashtra government has accepted Nabard funding for 23 irrigation projects in the form of long-term loan.
The decision would bring in ₹7,242.74 crore for the completion of irrigation projects, according to a Government Resolution released today.
6% interest
The GR said the National Bank for Agriculture and Rural Development (Nabard) would charge an annual interest of 6 per cent over the loan.
The government will get a grace period of first three years from the commencement of the work. Hence, there will be no pressure of immediate payback of instalments for the three years.
“It is expected that the grace period will be used by the state government to expedite the procedures of pending permissions and start the pending works. This will enable the state to bring more area under irrigation and with more yield from farmers, a small amount on water tax can be collected. This amount will be used for payback of the loan instalment,” a senior officer of the state water resources department said.
Nabard has permitted a period of 15 years for the completion of all pending projects. After completion, the loan has to be repaid in 15 years, the GR stated.
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