Nabard sanctions Rs 423-cr loan for Narmada link projects in Gujarat

The National Bank for Agriculture and Rural Development (Nabard) on Wednesday said it has sanctioned loan assistance of Rs 423 crore to the Gujarat Government under the Rural Infrastructure Development Fund for an irrigation project.

The project, envisaging laying of a pipeline to link the Narmada Main Canal with three major reservoirs in Sabarkantha district in North Gujarat, is expected to be completed by December 31, 2015.

The State Government had accorded priority to strengthening the water resource infrastructure for supplying surface water to water scarce regions. The project envisages lifting water from the Narmada Main Canal by pipelines to three major reservoirs, namely, Watrak, Mazam and Meshwo, which have a canal network to irrigate 22,397 hactares of land in Sabarkantha, a water scarce district.

Mr H. R. Dave, Chief General Manager, Nabard, said apart from irrigation benefits, the proposed project would also provide direct benefits, such as recharge of groundwater and drinking water resources in 143 villages, reduction in maintenance of tube-wells, enhancement in agricultural activities, increase in soil moisture and green vegetation, besides leading to recurring and non-recurring employment generation.

With this sanction, the cumulative assistance from Nabard to the State Government aggregates Rs 10,877 crore towards rural infrastructure development, of which Rs 7,661crore was released up to March 21, 2012, he added.