Increase in allocation to the Rural Infrastructure Development Fund (RIDF) to Rs 40,000 crore and doubling of Micro Irrigation Fund announced in the Budget will accelerate the progress of ongoing rural infrastructure projects, Nabard chairman G R Chintala said on Monday.
While presenting the Budget 2021-22, Finance Minister Nirmala Sitharaman said, We are enhancing the allocation to the Rural Infrastructure Development Fund from Rs 30,000 crore to Rs 40,000 crore.
She also announced to increase the corpus of the Micro Irrigation Fund by Rs 5,000 crore to Rs 10,000 crore.
Both the funds are being created under the National Bank of Agriculture and Rural Development (Nabard).
On the rural infrastructure front, the Rs 40,000 crore allocation for Rural Infrastructure Development and the doubling of Micro Irrigation Fund to Rs 10,000 crore will speed up ongoing rural infrastructure projects, Chintala said.
He said the Budget has accelerated sustainable agriculture sector's growth by pegging an agriculture credit target of Rs 16.5 lakh crore and has focused on structural reforms for aatma nirbhar farmers.
In order to provide adequate credit to farmers, the Finance Minister enhanced the agricultural credit target to Rs 16.5 lakh crore in FY22, with focus on providing higher credit flows to animal husbandry, dairy, and fisheries.
Chintala further said the recapitalisation of Rs 2,000 crore to Nabard and that of Rs 1,200 crore to regional rural banks (RRBs) will help achieve the target of agriculture credit.