Micro Irrigation Fund

Introduction

• Central government is committed to provide access to irrigation for agriculture farm by prioritising water conservation and its management.
• Agriculture in India is largely monsoon dependent. Distribution of monsoon is not uniform and also the climate is changing which is largely going to affect rainfed farming.
• Agriculture is possible only in regions where rainfall distribution ensures continuing availability of soil moisture during the critical growing periods for the crops. This availability of water can be made possible by micro irrigation for better agriculture results.
• Micro Irrigation Fund (MIF) has been created with NABARD (National Bank for Agriculture and Rural Development) by Government of India.
• Ministry of Agriculture and Farmers Welfare approves Rs.5000 crore for setting up MIF (Micro Irrigation Fund) with NABARD (National Bank for Agriculture and Rural Development) under PMKSY (Pradhan Mantri Krishi Sinchayee Yojana).
• Micro Irrigation Fund will help to disperse Rs. 5000 crore among states for promoting micro irrigation.
• States can avail the fund in form of loan from NABARD (National Bank for Agriculture and Rural Development) at 3% below the cost of funds and the 3% being compensated by central government.
• MIF (Micro Irrigation Fund) will help the states to avail loan at lower interest rate for short period to implement Micro Irrigation technologies to enhance water use efficiency.
• Central government under PMKSY (Pradhan Mantri Krishi Sinchayee Yojana) will provide subsidy @55% of the indicative unit cost to small and marginal farmers and @45% to other farmer for encouraging them to install Drip and Sprinkler system.
• State shall provide top up subsidies in addition to subsidy by PMKSY for encouraging micro irrigation through MIF.
• States shall invest Micro Irrigation Fund on special innovative projects, integrated projects and on projects including public private partnership (PPP) mode also on providing subsidies for micro irrigation setups.
• It will help in seeking private partnership in managing and boosting micro irrigation across India.
• State government shall pay back the loan in 7 years.
• Central government plans to bring 69.55 million hectare area under micro irrigation by adding 2 million hectare of agriculture land under micro irrigation every year through MIF (Micro Irrigation Fund).
• Micro Irrigation Funds can be availed by FPOs (Farmers Producers Organisation), Cooperatives and State level Agencies with a state level guarantee or by other equivalent bodies.
• ICAR (Indian Council of Agriculture Research) shall impart training and field demonstration through KVK (Kisan Vikas Kendra) to promote micro irrigation.
• State will ensure energy support for micro irrigation.
• All monitoring and evaluation requirements set down for the PMKSY shall also apply to the MIF scheme.
• All activities under micro irrigation will be geo tagged with unique code on PMKSY Bhuvan platform.

Objective

• The main objective of the MIF (Micro Irrigation Fund) is to help and support the state government to prepare and organise resources for Micro Irrigation expansion by setting special and innovative projects.
• It includes providing special subsidies on micro irrigation setups beyond the provision available under PMKSY (Pradhan Mantri Krishi Sinchayee Yojana) to encourage farmers to install micro irrigation system.

Benefits for Farmers

• Farmers can avail higher subsidy on micro irrigation system.
• They shall get free service for 3 years after installation of micro irrigation system.
• Micro Irrigation will provide higher crop production.
• It will help in reduction of labour cost.
• Less water consumption will provide availability of water resources for longer duration.
• Lower power consumption will reduce financial burden of farmers.
• It will help to reduce use of fertilisers and benefit by increased soil fertility.
• Micro Irrigation will be ensuring better result in farm practices.
• Judicious use of available water will help in better water management.
• Micro Irrigation will improve livelihood of the farmers.

Benefits for State Government

• Scheme will help the state government to have short term loan at lower interest rate.
• State government can approach public private partnership for Micro Irrigation depending on state specific requirement.
• Private partnership will help state to bring new idea and resources for micro irrigation.
• On farm water use efficiency (storage, distribution and use of water) will be implemented by states helping in achieving 'Per Drop More Crop' concept of PMKSY (Pradhan Mantri Krishi Sinchayee Yojana).
• It will ensure sustainable agricultural development and food security.
• Utilisation of available water resources in states will be done wisely in effective manner.
• It will help to cover rainfed area with assured irrigation.
• It will help states to provide extra subsidies for encouraging farmer to implement Micro Irrigation System.
• State will get opportunity of generating employment.
• It will decrease dependency on ground water and hence prevent further depletion of ground water.

How farmers can apply

• Farmers can apply for the loans in form of FPOs (Farmers Producers Organisations)/ Cooperatives/ WUA (Water User Association)/ State Level Agencies or equivalent bodies for innovative cluster based community Irrigation projects.
• Cluster Size: 20 Hectare or more for Northeast and Himalayan states Cluster Size: 50 Hectare or more for other states
• Above organisations will submit their proposals/projects to SLSC ( State Level Sanction Committee) of PMKSY (Pradhan Mantri Krishi Sinchayee Yojana).
• Sanction Committee will submit it to Steering Committee which is going to examine and approve projects from state government. Steering Committee will then recommend it to NABARD for loan grant.

Important Links

• National Bank for Agriculture and Rural Development Official Website
• Pradhan Mantri Krishi Sinchayee Yojana (PMKKSY) Website.
• Micro Irrigation Fund Guidelines.
• Press Information Bureau on PMKSY.
• Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) Guidelines.

Contact Details

• Support and Query on PMKSY (Pradhan Mantri Krishi Sinchayee Yojana) :- support.pmksy-dac@gov.in
• Kisan Call Center Number :- 1800-180-1551.
• Helpdesk Number :-
  • 022-26539895.
  • 022-26539896.
  • 022 26539899.
• NABARD Helpline Number :- 011-25842836.
• NABARD Helpline E-Mail :- nraapc2007@gmail.com.
• NABARD (National Bank for Agriculture and Rural Development),
  Plot C-24, G Block, Bandra Kurla Complex, BKC Road
  Bandra East, Mumbai, Maharashtra 400051.
• Ministry of Agriculture & Farmers Welfare,
  Department of Agriculture & Farmers Welfare,
  Krishi Bhawan, New Delhi-110001