MINOR IRRIGATION

1.OBJECTIVE:

The objective of the Minor Irrigation schemes should be to meet genuine credit needs of the farmers for development of farm irrigation facilities to improve cropping intensity, better yields and incremental income from the farm.

2. PURPOSE:

The following activities can be considered for financing under Minor Irrigation,

Lift Irrigation
Well Irrigation
Electric Motor & Pump set
Diesel Engine
Construction of pump house/ water delivery channel
Payment of deposit to the State Electricity Board also be considered
Any other type of need based facility/construction suitable to the topography of the agricultural field

3. ELIGIBILITY:

Individual Farmers
Group of farmers/ Co-Operative Society of the farmers
State Irrigation Corporations/ Bodies offering the guarantee of State Government

Individual farmers /Group farmers, Co-operative societies should have owned land or registered leased land and should be willing to adopt advanced farming techniques and improved cropping patterns.

In case of lift irrigation schemes, permission from the competent authority like the irrigation/PWDepartment of the state Govt. to lift water from the river/lake at least during the currency of the loan should be obtained.

4. TECHNICAL FEASIBILITY:

a) Availability and suitability of water in adequate quantity during cropping seasons for irrigation purpose
b) Minimum land area of the farmer-borrower for effective use of the irrigation scheme.
c) Availability of BIS certification on equipment to ensure quality.

5. FINANCIAL VIABILITY:

The financial viability of the irrigation schemes should be assessed keeping in view of the capital cost vis-à-vis expected incremental income from the farm. The assessment should clearly indicate that the net incremental income on account of improved agronomic practices would be adequate to service the loan with interest within a reasonable period apart from the farmer getting a fair return on the investment.

6. QUANTUM OF LOAN:

As per unit cost approved by NABARD

7. MARGIN:

For loans upto Rs.50, 000/- :Nil
Loans above Rs.50,000/- :15% to 25%

8. TYPES OF FACILITY/TERM:

Term loan, Annual Review

9. SECURITY:

a) Demand Promissory Note (L-434),
b) Composite Hypothecation Agreement (CHA-1)
c) L-515 declaration as to relationship with Director/Officials,
d) Annex the clauses on non-diversion of funds and securitisation enclosed to Br. Cir.No.97/186 dated 08.03.2004 with CHA I/CHA-II/CHA-IV
e) Equitable or Legal mortgage or Deed of declaration of land wherever stipulated. Legal Mortgage in form CHA - IV
f) Letter of guarantee from guarantor/s whenever consider necessary (CHA-3).

10. DISBURSEMENT:

As far as possible the disbursement should be directly to the supplier.

11. REPAYMENT:

Repayment inclusive of gestation period is as under: