The sub-committee of the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) has responded positively to the Telangana government’s request for sanction of ` 6,700 crore for 11 irrigation projects in the state.
The sub-committee meeting, which was held in Delhi on Wednesday, was attended by state irrigation minister T Harish Rao as its member.
The sub-committee recommended interest-free loans for irrigation projects which would be completed within the stipulated time.
Harish Rao urged the Centre to release funds within a week of an MoU being signed by the state and central governments on a particular project. He wanted 60 percent of the project’s cost be given as central grant and the remaining as loan from NABARD.
The sub-committee also recommended a cut in the interest rate to 4.5 per cent on loans taken for construction of projects. The central government might take a final decision on these recommendations soon, Rao told reporters in Delhi after the meeting.
If states complete construction of irrigation projects in three years, the interest rate will be 4.5 pc. For the period between the fourth and 15th year, the principal, together with interest, should be paid by the respective states. However, the sub-committee felt that incentives should be given to those states which completed irrigation projects as per schedule.
Panel recommends interest free loans for irrigation projects also recommended a cut in the interest rate to 4.5 per cent on loans taken for construction of projects was held in Delhi attended by Harish Rao.
Source: The New Indian Express