National Bank For Agriculture & Rural Development (NABARD)

During the Annual Plan 2008-09, Planning Commission had approved the pattern of plan funding of Rs.691.93 crores under Negotiated loan process with financial institutions like NABARD, HUDCO and REC. Out of which, the Union Territory of Puducherry had taken up with NABARD for availing Rs.100.00 crores under Automatic Debit Mechanism system. Based on our rapprochement, NABARD had sanctioned a loan of Rs.5457.190 lakhs for taking up 25 project under RIDF-XIV The 25 project had been sanctioned subject to the conditions that Government of Puducherry had to release an amount of Rs.265.930 lakhs as State Share. The 25 projects includes ongoing works/improvements of 19 Rural Drinking Water Supply Scheme, 2 Minor Irrigation Projects, 2 Flood Protection Projects, one Rural Road and Construction of Fishing Harbour at Karaikal.

The 25 nos. of works should be completed at the end of 31 March 2011. For the 25 nos. of works, an amount of Rs.1376.26 lakhs had been reimbursed on 1^stDecember 2009 and Rs.966.679 lakhs on 30-03-2010 by Government of Puducherry respectively. For implementation of RIDF, Secretary Finance as Nodal Officer and Finance Department was designated as nodal department for interacting with implementing departments and NABARD.

The rate of interest charged for implementation of RIDF-XIV was 6.5%. The period of loan was 7 years for the date of drawal, including a grace period of two years i.e., each drawal would be required to be repaid in five equal annual installments after the grace period of 2 years during which interest will be payable. The rate of interest will be changeable at the rate of decided by Reserve Bank of India . Further, Loans will be available upto 95% in respect of activities related to Agriculture & allied activities. On behalf of development under social sector projects and rural connectivity, it was 85% and 80% respectively.

During the Annual Plan 2009-10, Government of Puducherry had onceagain proposed a loan assistance from NABARD for 644 works at a cost of Rs. 88000.00 lakhs. In this connection NABARD had sanctioned an amount of Rs.6822.12 lakhs as Ist instalment on 25^th November 2009 for improvement of 37 works with inclusion on creation of infrastructure facilities in 24 schools on 26-03-2010 as second instalment.

In the current financial year (2010-11) the departments have proposed 5 works at a cost of Rs.4333.70 lakhs upto June 2010 and the same has been forwarded to NABARD.

Of late NABARD has sanctioned loan to the extent of Rs.81.00 crores as against the Project Cost of Rs.124.59 Crores in respect of 55 projects. Under RIDF XV vide letter dated 09.09.2010.

In nutshell, as on date as against the project cost of Rs.326.47 crores, NABARD has sanctioned Rs.214.33 crores in respect of 141 projects. However, the departments have utilised only 20.69% of the sanctioned loan amounting to Rs.44.36 crores leaving a balance yet to be utilised. The statement showing details of work, project cost, loan sanctioned by NABARD, loan availed by departments etc. are furnished in the following statement.

Details of Loan Sanctioned by NABARD under RIDF-XIV, XV and XVI