MIF with an initial corpus of Rs 5000 crore was operationalized in NABARD in 2019-20 to facilitate State Govts. efforts in mobilizing additional resources for expanding coverage under micro irrigation and incentivizing its adoption beyond provisions of Pradhan Mantri Krishi Sinchayee Yojana-Per Drop More Crop. The nodal Ministry under the fund is the MoA&FW, GoI.
The Ministry of Agriculture & Farmers' Welfare (MoA&FW), Government of India (GoI), has augmented Micro Irrigation Fund (MIF) by another Rs 5,000 crore (as announced in the Union Budget 2021-22) for the 15th Finance Commission period with the interest subvention @ 2%. Accordingly, the Board of Directors (BoD) of NABARD, in its 259th meeting held on 12 November 2024, approved the augmentation and continuation of the MIF funding arrangement for State Governments during the 15th Finance Commission period.
Under the funding arrangement, loans will be extended to participating State Governments with 2% interest subvention from the Government of India (GoI) starting from October 3, 2024. Prior to this, the interest subvention was 3%.
Cumulative loan sanctioned stood at Rs 4719.10 crore, against which Rs 3750.57 crore has been released as on 31 May 2025.
State wise cumulative loan sanctioned and released as on 31 May 2025:
| S.No. |
Name of the State |
Loan Sanctioned |
Loan Released |
| 1 |
Andhra Pradesh |
616.13 |
616.13 |
| 2 |
Gujarat |
764.13 |
641.29 |
| 3 |
Tamil Nadu |
1357.93 |
1357.93 |
| 4 |
Haryana |
785.30 |
365.89 |
| 5 |
Punjab |
149.65 |
32.13 |
| 6 |
Uttarakhand |
14.84 |
0.58 |
| 7 |
Rajasthan |
740.79 |
576.65 |
| 8 |
Karnataka |
290.33 |
159.87 |
| |
Total |
4719.10 |
3750.57 |
The sanctions made by NABARD till date under MIF envisages expansion of micro irrigation coverage by an area of 22.22 lakh ha. Out of this, an area of 21.69 lakh ha has been covered by the States as on 31 March 2025 (Source-MoA&FW, GoI).