Rural infrastructure development fund: Dispur to borrow Rs 338 crore from NABARD

GUWAHATI: The Government of Assam will be taking a loan of Rs 338.2833 crore from NABARD (National Bank of Agriculture & Rural Development). This amount will be utilized for various projects to be undertaken by six departments under the 'Rural Infrastructure Development Fund' (RIDF)-XXV.

Sources informed that the highest amount of Rs 128.2742 crore is for the PWD (Roads) followed by the departments of Elementary Education (Rs 90.2675 crore), Animal Husbandry & Veterinary (Rs 47.4593 crore), Soil Conservation (Rs 28. 7987 crore), Agriculture (Rs 24.1516 crore), and PHE (Rs 19.332 crore).

The State government will have to pay rate of interest on the mentioned loan amount at an interest rate of 1.5% below the bank rate applicable as on the date of disbursement by NABARD. The current rate is estimated to be 3.90%.

Following approval by the State Cabinet, the initial authorization process of the loan agreement has been initialized.

Mentionably, the State Government of Assam has been availing loan facility from NABARD against various sectors under the RIDF since 1996-1997. So far, loan assistance of Rs 6151. 86 crore has been taken up to the fiscal 2019-20. Against these loans, the State government has made repayment of Rs 2293.76 crore leaving an outstanding balance of Rs 3858.10 crore.

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