Posted by CMV360 Editorial Staff on 29-Mar-2023 09:59 AM
The Indian central government has introduced a new initiative to support farmers through the creation of the Rs. 5000 crore Micro Irrigation Fund. The primary goal of this fund is to encourage the implementation of micro-irrigation systems among farmers in the country.
Under this scheme, farmers will be able to install micro-irrigation systems with additional subsidies provided by both the central and state governments. The central government will offer a 55% subsidy on micro-irrigation systems to small and marginal farmers, while the state government will provide an extra subsidy for the same through the Micro Irrigation Fund.
For other farmers, the central government will offer a 45% subsidy on micro-irrigation systems, and the state government will provide additional subsidies to enhance the implementation of micro-irrigation systems. It is expected that small and marginal farmers will benefit the most from this scheme.
In addition, farmers who install micro-irrigation systems will receive three years of free service after installation. This initiative is expected to go a long way in promoting sustainable agricultural practices and reducing water wastage, benefiting both farmers and the environment.
Here are the key points about the Micro Irrigation Fund in India:
Name of the Scheme - Micro Irrigation Fund.
Launched on - 16.05.2018.
Launched by - Central Government.
Nodal Agency - Ministry of Agriculture and Farmers Welfare.
Beneficiaries - Farmers
The Micro Irrigation Fund (MIF) has been created by the Central Government to help state governments in expanding and promoting micro irrigation technology across the country. The main objective of the MIF is to prepare and organise resources for the expansion of micro irrigation by setting up special and innovative projects. The MIF aims to achieve the following objectives:
Encourage farmers to install micro irrigation systems: The MIF aims to provide special subsidies on micro irrigation setups beyond the provision available under PMKSY. This will encourage farmers, especially small and marginal farmers, to install micro irrigation systems and enhance water use efficiency.
Increase the area under micro irrigation: The MIF aims to bring 69.55 million hectares of agricultural land under micro irrigation. This will be achieved by adding 2 million hectares of agricultural land under micro irrigation every year through MIF.
Provide loans at lower interest rates: The MIF will help state governments avail loans at a lower interest rate for a short period to implement micro irrigation technologies. The loan can be availed by Farmers Producers Organisation (FPOs), Cooperatives and State level Agencies with a state level guarantee or by other equivalent bodies.
Encourage public-private partnership: The MIF will invest in special innovative projects, integrated projects, and projects including public-private partnership (PPP) mode. This will help in seeking private partnership in managing and boosting micro irrigation across India.
Provide training and field demonstration: The Indian Council of Agriculture Research (ICAR) will impart training and field demonstration through Kisan Vikas Kendra (KVK) to promote micro irrigation. This will help farmers to understand the benefits of micro irrigation and how to use it efficiently.
Ensure energy support for micro irrigation: The state government will ensure energy support for micro irrigation to promote sustainable farming practices.
Monitoring and evaluation: All monitoring and evaluation requirements set down for the PMKSY shall also apply to the MIF scheme. This will help in tracking the progress of micro irrigation projects and identifying areas for improvement.
Geo-tagging of micro irrigation projects: All activities under micro irrigation will be geo-tagged with a unique code on the PMKSY Bhuvan platform. This will help in tracking the location of micro irrigation projects and their progress.
Benefits of the MIF (Micro Irrigation Fund) scheme for Farmers:
Read also: Overview of Government Schemes for Indian Farmers: Finance and Insurance Assistance for Agricultural Development
The eligibility criteria to avail benefits from the Micro Irrigation Fund are as follows:
Farmers, Farmers Producers Organizations (FPOs), Cooperatives, Water User Associations (WUAs), State Level Agencies or equivalent bodies are eligible to apply for loans under the scheme.
The proposed project should be an innovative cluster-based community irrigation project.
The minimum cluster size for Northeast and Himalayan states is 20 hectares, and for other states, it is 50 hectares.
The project should be submitted to the State Level Sanction Committee (SLSC) of PMKSY.
The Steering Committee examines and approves projects from the state government.
The projects approved by the Steering Committee are recommended to NABARD for loan grant.
The loans are granted at an interest rate of 3% to the state governments, which they can further lend to farmers and other eligible entities at an interest rate of 5%.
Here are some general guidelines for Micro Irrigation Fund:
The funds can be utilized by the State Government, farmers, FPOs (Farmer Producers Organizations), Cooperatives, WUAs (Water Users Associations), and other eligible entities for setting up micro-irrigation projects.
The projects should be innovative and should be able to enhance water use efficiency.
The scheme provides subsidies on micro-irrigation projects beyond the provision available under Pradhan Mantri Krishi Sinchai Yojana (PMKSY).
The scheme is available for both new and existing areas.
The project should have a minimum cluster size of 20 hectares in North-Eastern and Himalayan States, and 50 hectares in other states.
The projects should be submitted by eligible entities to the State Level Sanction Committee (SLSC) of PMKSY.
The SLSC will then submit the project to the Steering Committee for approval.
Once approved, the Steering Committee will recommend the project to NABARD for loan grant.
The loan tenure is 7 years, including a grace period of 2 years.
The interest rate charged on loans is 3% per annum, and the State Government can avail of short-term loans at a lower interest rate.
The farmers and entities setting up micro-irrigation projects will receive free service for three years after installation.
The scheme aims to improve crop production, reduce labor costs, improve water management, and provide higher soil fertility.
Here are some FAQs on Micro Irrigation Fund:
Q1. What is Micro Irrigation Fund?
Ans: Micro Irrigation Fund (MIF) is a dedicated fund created by the Government of India to support and promote micro irrigation activities in the country.
Q2. Who is eligible to apply for the loan under the Micro Irrigation Fund?
Ans: Farmers, Farmers Producers Organisations (FPOs), Cooperatives, Water User Associations (WUAs), State Level Agencies, or equivalent bodies are eligible to apply for the loan.
Q3. What is the maximum loan amount that can be availed under the Micro Irrigation Fund?
Ans: The maximum loan amount that can be availed under the Micro Irrigation Fund is Rs. 10 crore.
Q4. What is the interest rate for the loan under the Micro Irrigation Fund?
Ans: The interest rate for the loan under the Micro Irrigation Fund is 3% per annum.
Q5. What is the repayment period for the loan under the Micro Irrigation Fund?
Ans: The repayment period for the loan under the Micro Irrigation Fund is 7 years, including a grace period of 2 years.
Q6. Can the loan under the Micro Irrigation Fund be pre-closed?
Ans: Yes, the loan under the Micro Irrigation Fund can be pre-closed without any pre-payment penalty.
Q7. Can farmers avail subsidy under the Micro Irrigation Fund?
Ans: Yes, farmers can avail higher subsidies on micro irrigation systems under the Micro Irrigation Fund.
Q8. What is the role of NABARD in the Micro Irrigation Fund?
Ans: NABARD (National Bank for Agriculture and Rural Development) is the implementation agency for the Micro Irrigation Fund. It is responsible for processing and sanctioning the loans, as well as monitoring and evaluating the projects.
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