Deputy CM Sushil Kumar Modi said on Monday that National Bank for Agriculture and Rural Development (NABARD) would be lending Rs3,000 crore to support the state government's ambitious Gramin Tola Sampark Nishchay Yojana (GTSNY), that is aimed at providing road connectivity to cluster of houses that form part of the main village under the 'Saat Nishchay' programme of the state.
"Every state needs development and no state can have accelerated development activities without loan money," Modi said, adding that NABARD would also provide Rs2,200 crore worth of loan under Rural Infrastructure Development Fund (RIDF) at a low annual interest of 4.7% to support infrastructure development activities in the rural areas during the current financial year.
Modi, who addressed the review meeting of NABARD at its state headquarters, said the loan for the ambitious GTSNY of the state government would be provided under Nabard Infrastructure Development Assistance (NIDA) programme. He also said under Fiscal Responsibility and Budget Management (FRBM) Act, the state government can raise loan only up to 3.5% of its GDP in a financial year, but this rule would not be binding if the loan is taken under NIDA.
NABARD chief general manager (CGM) S K Majumdar said the loan under NIDA would be routed through Bihar Rural Road Development Agency (BRRDA) and, therefore, the state government would not come into the picture. Accordingly, it would be able to short-circuit the limit and condition put by the FRBM Act.
Majumdar also said it is long-term loan ranging up to 25 years and the interest charged would be "slightly higher and its resetting would be done based upon the market trend".
Modi also said that NABARD would provide Rs1,622 crore worth of loan for North Koel Karo Reservoir Project (NKKRP), which is aimed at providing irrigation facility to Palamu and Garhwa districts in Jharkhand and Aurangabad and Gaya districts in Bihar.