BHUBANESWAR: The State Government has asked all departments to take advantage of cheaper loan available under the Nabard’s Rural Infrastructure Development Fund (RIDF) for creation of robust rural infrastructure. The RIDF loan is one of the cheapest sources of borrowing, which carries interest rate of 2.75 per cent at present, for the Government.
“Every attempt should be made to optimise the use of low cost borrowing from RIDF for creation of rural infrastructure,” Principal Finance Secretary Ashok Meena wrote to secretaries of all departments.
As many as 37 categories of activities classified under three broad sectors like agriculture and allied, social, and rural connectivity are eligible for funding under RIDF.
Since rural infrastructure plays a pivotal role in the growth of rural economy, all the departments have been asked to identify shelf of projects eligible for funding under RIDF and submit it to the Government for approval.
A high power committee under the chairmanship of Development Commissioner S C Mohapatra is scheduled to meet here next week to approve new projects for RIDF funding and review the progress of implementation of projects sanctioned last year.
The national bank had sanctioned projects worth Rs 25,056.58 crore for the State till the end of March 31, 2020. Around Rs 8,942.15 crore, which is 35 per cent of the total loan, was sanctioned for irrigation, Rs 4,317.43 crore for agriculture related projects, Rs 4,408.67 crore for construction of rural bridges, Rs 5,868.74 crore for rural roads and Rs 1,519,59 crore for social sector. In 2018-19, the Nabard had sanctioned rural infrastructure projects worth Rs 22,482.72 crore to the State which could utilise funds to the tune of Rs 17,586.63 crore, official sources said.
“The Government is waiting for details from Nabard about the quantum of funds to be made available for the State under this special measures. We will work out accordingly,” the sources said. Meanwhile, the bank has projected a credit potential of Rs 90,395.69 crore for Odisha under priority sector for 2020-21.
Last year funding
Rs 8,942.15 cr sanctioned for irrigation
Rs 4,317.43 cr for agriculture related projects
Rs 4,408.67 cr for construction of rural bridges
Rs 5,868.74 cr for rural roads
Rs 1,519,59 cr for social sector