Budget Query

Friday, February 29, 2008

Water Resources

  • Accelerated Irrigation Benefit Programme (AIBP): 24 major and medium irrigation projects and 753 minor irrigation schemes to be completed in 2007-08, creating additional irrigation potential of 500,000 hectare; Outlay for 2008-09 increased to Rs. 20,000 crore, from Rs.11,000 crore in 2007-08.

  • Rainfed Area Development Programme finalised and to be implemented in 2008-09 with an allocation of Rs.348 crore. Priority to those areas that have not been beneficiaries of watershed development schemes.

  • Centrally Sponsored Scheme on Micro Irrigation: Rs.500 crore being allocated in 2008-09 with a target of covering 400,000 hectare.

  • Water bodies: Agreements for a total sum of US$738 million signed with the World Bank by the Governments of Tamil Nadu, Andhra Pradesh and Karnataka to repair, renovate and restore water bodies. Similar agreements to be signed between the World Bank and the Governments of Orissa, West Bengal and some other States.

  • Irrigation and Water Resources Finance Corporation: 14 irrigation projects approved as National Projects by Government; Irrigation and Water Resources Finance Corporation (IWRFC) proposed to be set up with initial capital of Rs.100 crore contributed by the Central Government, to fund long-gestation major and medium irrigation projects.

  • National Horticulture Mission (NHM): NHM covering 340 districts in 18 States and two Union Territories, provided Rs.1,100 crore in 2008-09.

  • Soil testing: 500 soil testing laboratories to be set up during the Eleventh Plan with Government assistance of Rs.30 lakh per laboratory; one-time allocation of Rs.75 crore to the Ministry of Agriculture in order to provide one fully-fitted mobile soil testing laboratory each to 250 districts of the country.

  • Plantation Crops: Special Purpose Tea Fund for re-plantation and rejuvenation to be provided Rs.40 crore in 2008-09; similar support to cardamom, rubber and coffee; crop insurance scheme for tea, rubber, tobacco, chilli, ginger, turmeric, pepper and cardamom to be introduced.

  • National Plant Protection Training Institute at Hyderabad to be converted and upgraded into an autonomous National Institute of Plant Health Management.

  • Crop Insurance: National Agriculture Insurance Scheme (NAIS) to be continued in its present form for Kharif and Rabi 2008-09. Rs.644 crore provided for the scheme.

  • Weather Based Crop Insurance Scheme implemented as a pilot scheme in selected areas of five States to be continued; Rs.50 crore provided for this purpose in 2008-09.

  • Subsidy for Fertilizers: Government to continue to provide fertilisers to farmers at subsidized prices; Proposals to move to a nutrient based subsidy regime and alternative methods of delivery being examined.

  • Cooperative Credit Structure: Prof. Vaidyanathan Committee's report on reviving the short-term cooperative credit structure under implementation in 17 states. Rs. 1185 crore has been released so far by the Central Government to four States. Central Government and State Government have reached an agreement to implement the report on reviving the long term cooperative credit structure. Central Government’s share will be Rs. 2,642 crore or 86 per cent of the total burden.

  • Scheme of Debt Waiver and Debt Relief for farmers: " Scheme to cover all loans disbursed by scheduled commercial banks, regional rural banks and cooperative credit institutions up to March 31, 2007 and overdue as on December 31, 2007 are covered under the scheme;

  • " Complete waiver of all loans that were overdue on December 31, 2007 and which remained unpaid until February 29, 2008 for marginal farmers and small farmers; " one time settlement (OTS) scheme in respect of other farmers for all loans that were overdue on December 31, 2007 and which remained unpaid until February 29, 2008; Rebate of 25 per cent against payment of the balance of 75 per cent under OTS;

" Agricultural loans restructured and rescheduled by banks in 2004 and 2006 hrough special packages also eligible, either for a waiver or an OTS on the same pattern;" Implementation of the debt waiver and debt relief scheme to be completed by June 30, 2008; Farmers availing the relief would be entitled to fresh agricultural loans from banks in accordance with normal rules.

" About 3 crore small and marginal farmers and about one crore other farmers to benefit from the scheme; Total value of overdue loans being waived estimated at Rs.50,000 crore and the OTS relief estimated at Rs.10,000 crore.

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