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Govt may give 128 bln rupee to Uttar Pradesh under farm infra fund

Friday, Jul 31, 2020

 

By Kaushal Verma

 

NEW DELHI – The government aims to allocate around 12.8% of 1 trln rupees under the agricultural infrastructure fund to Uttar Pradesh, a senior official with the farm ministry said.

 

"The government is targeting…the lion's share at 12,831 crore rupees (128.3 bln rupees) for Uttar Pradesh…," the official said.

 

Earlier this month, the Cabinet had approved the creation of a 1-trln-rupee fund to boost infrastructure in the agriculture sector.

 

The scheme aims to create farm infrastructure, with banks and financial institutions providing loans to farmers and entities such as primary farm credit societies, marketing cooperative societies, farmer producer organisations, self-help groups, and start-ups.

 

Uttar Pradesh is the largest sugarcane and wheat producing state, and among the leading growers in pulses, oilseeds, and horticulture crops.  

 

The government also aims to provide around 90.2 bln rupees to Rajasthan, 84.6 bln rupees to Maharashtra, 74.4 bln rupees to Madhya Pradesh, 72.8 bln rupees to Gujarat, and 72.6 bln rupees to West Bengal, the official said.

 

Tentative allocation of 65.4 bln rupees is also planned for Tamil Nadu, 47.1 bln rupees to Punjab, 45.3 bln rupees to Karnataka, 39.8 bln rupees to Bihar, 39.0 bln rupees to Haryana and 30.8 bln rupees to Telangana, he said.

 

These states are expected to receive a chunk of the fund, the remaining states may get below 30 bln rupees from the fund, the official said. 

 

The Centre also planning to set up national, state and district level monitoring committees to ensure real-time monitoring and effective implementation of the fund, he said.
 

The national level monitoring committee will guide and steer the implementation of the project. It will also examine and recommend the guidelines for implementation of the project.

 

State level monitoring committees will implement the guidelines in the respective states, while a district level monitoring committee will be the first line of implementation and monitoring system within the overall framework. It will identify the beneficiaries to ensure viability of the project, he said.

 

Under the fund, borrowers can avail interest subvention of 3% annually for loans of up to 20 mln rupees, for up to seven years, according to a government release.

 

Further, the government will pay credit guarantee coverage fee for loans of up to 20 mln rupees under the Credit Guarantee Fund scheme for micro and small enterprises.  End

 

Edited by Shirsha Thakur

 

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