The Centre has agreed to provide Rs 6700 cr financial assistance to 11 projects in Telangana state under Pradhana Mantri Krishi Sinchay Yojana (PMKSY) scheme. This was stated by Telangana Irrigation Minister T Harish Rao, a member of PMKSY sub-committee, attended a meeting held in Delhi here on Wednesday.
The meeting took some key decisions to give boost to the states which completed irrigation projects on time by funding. When Harish urged to provide the state with Rs 6700 cr for its 11 projects including Devadula, the Centre agreed to it. The Sub Committee which took some key decisions has recommended to offer interest free loans to the projects completed on time and reduction of interest rate to 4.5 per cent to those for which Centre offers loans through Nabard.
Harish also asked that the Centre should give 60 per cent grants for the projects and loans be offered through Nabard. The centre has offered Rs 6000 cr grants to Nabard which will loan the states on the surety of the former. It was decided to give interest exemptions to the projects completed in three years and increase the ayacut area and states will pay loan amount and interest from fourth year to 15 years. The Committee also decided to give loans to the projects whose estimates at 20 per cent. Similarly the