The National Bank for Agriculture and Rural Development (NABARD) has sanctioned INR 770 cr in financial assistance for the development of two major irrigation projects in Jharkhand. As per media reports, this funding has been approved under the Rural Infrastructure Development Fund (RIDF) for the fiscal year 2024-25, with the objective of enhancing agricultural productivity in the region.
The two projects, located in the Palamu and Giridih districts, are set to significantly improve irrigation facilities, impacting over 21,000 hectares of farmland. In Palamu, the initiative will employ a pipeline system designed to provide irrigation across eight blocks, ultimately benefiting an additional 11,000 hectares of agricultural land. This expansion is expected to facilitate better water management and crop yields for local farmers.
In Giridih, the megalift irrigation project will cover 165 of the 197 villages in Pirtand block. This initiative aims to develop a cultivable command area of 10,158 hectares, which will be crucial for supporting the livelihoods of farmers in the region. By ensuring a more reliable water supply, the project is anticipated to boost agricultural activities and contribute to rural development.
According to NABARD, the total support extended to Jharkhand under RIDF for the current fiscal year has now reached Rs 1,017 crore. Since the inception of the Rural Infrastructure Development Fund, the bank’s cumulative support for the state has risen to approximately Rs 24,300 crore. This substantial financial backing reflects NABARD’s commitment to enhancing rural infrastructure and promoting agricultural growth in Jharkhand.
Read more: Signet Industries Allocates 20K Hectares for Micro-Irrigation in Andhra Pradesh
This financial backing is expected to uplift agricultural activities in the region. The successful implementation of these projects is anticipated to not only improve irrigation but also stimulate economic development and empower local communities through enhanced agricultural productivity.
Rural Infrastructure Development Fund (RIDF)
The Rural Infrastructure Development Fund (RIDF), established by the Government of India in 1995-96 and managed by NABARD, aims to finance ongoing rural infrastructure projects. Initially funded by domestic commercial banks to address their shortfall in agricultural lending, RIDF’s allocation has significantly increased from an initial corpus of Rs. 2,000 crore to Rs. 40,475 crore for 2023-24 under RIDF XXIX, resulting in a total cumulative allocation of Rs. 4,98,411 crore, which includes Rs. 18,500 crore for the Bharat Nirman initiative.
RIDF currently supports 39 eligible activities approved by the government, categorized into three main sectors: agriculture and related activities, the social sector, and rural connectivity. These categories cover a diverse range of projects aimed at improving rural infrastructure and fostering development.