Micro-Irrigation Fund - A Brief Overview

Micro Irrigation Fund was set up in order to achieve the goal of ‘per drop more crop’. The fund has been set up under NABARD, which will provide this amount to states on concessional rate of interest in order to promote micro-irrigation. This article briefly shares the modalities of implementing and disbursing Micro Irrigation Fund.

Aspirants would find this article very helpful while preparing for the IAS Exam.

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Micro Irrigation Fund Details – ‘Per Drop More Crop’

Approval was given by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister for setting up of a dedicated ‘Micro Irrigation Fund’ (MIF) with NABARD under Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) with an initial corpus of Rs 5,000 crore.

Read about Pradhan Mantri Krishi Sinchayee Yojana in the linked article.

  1. By supplementing the efforts of PMKSY programme, the dedicated micro-irrigation fund would help in bringing about 10 lakh hectares under micro-irrigation.
  2. The fund will facilitate States to mobilize resources for their initiatives, including additional (top up subsidy) in the implementation of Pradhan Mantri Krishi Sinchayee Yojana – Per Drop More Crop (PDMC) to achieve the annual target of about 2 million hectares per year during the remaining period of 14th Finance Commission.
  3. The government estimates the area that can come under micro irrigation at 69.5 million hectares, compared with the current coverage of only about 10 million hectares.
  4. The states can access this fund for incentivizing micro-irrigation, innovative integrated projects, including projects in the Public-Private Partnership (PPP) mode.
  5. The funds can be accessed by State Level Agencies/ Farmers Producers Organization (FPO)/ Cooperatives with a state government guarantee or any equivalent collateral.
  6. The fund may be accessed by the Farmers Co-operatives for innovative cluster based community irrigation projects.
  7. Under the programme, NABARD will extend loans to state governments during this period. The loans can be paid back in 7 years, including a grace period of two years.

Frequently Asked Questions about Micro Irrigation Fund


What is the objective of Micro-Irrigation Fund?

The major objective of the Micro irigation fund is to facilitate the States in mobilizing the resources to provide top up/additional incentives to farmers for incentivising micro irrigation beyond the provisions available under PMKSY-PDMC.

What are the advantages of micro irrigation?

Advantages of micro irrigation are as follows:
Microirrigation is a low pressure, low volume irrigation system suitable for high-return value crops such as fruit and vegetable crops.
If managed properly, microirrigation can increase yields and decrease water, fertilizer and labor requirements.

The above details would help candidates prepare for UPSC 2022.

Related Links:

Funds of Central Government Green Climate Fund
Sovereign Wealth Fund United Nations Children’s Fund
United Nations Population Fund Employees’ Provident Fund Organisation (EPFO)
CAMPA Fund International Monetary Fund
National Investment and Infrastructure Fund Nirbhaya Fund
World Wide Fund for Nature International Fund for Agricultural Development


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