Modi government to provide additional working capital worth Rs 30k cr to farmers through NABARD

The Narendra Modi government will provide an additional Rs 30000 cr Emergency Working Capital Fund to farmers through the National Bank of Agricultural and Rural Development (NABARD), Finance Minister Nirmala Sitharaman announced on Thursday in a press conference. This is over and above Rs 90000 cr to be provided by NABARD through the normal refinance route for this year, Sitharaman said.

The facility will be front-loaded on tap facility to 33 state cooperative banks, 351 district cooperative banks and 43 Regional Rural Banks (RRB). This is likley to help over 3 cr farmers - mostly small and marginal, she said. The finance minister today said that the NABARD has already provided refinancing worth Rs 29500 cr to Regional Cooperative Banks and Regional Rural Banks in March 2020 alone.

The FM also said that 63 lakh loans worth Rs 86600 cr were approved in agriculture sector between 1 March 2020 and 30 April 2020 as liquidity support measures.

The government has also provided support of Rs 4200 cr under the Rural Infrastructure Development Fund to states during the March month for enhancing the rural infrastructure. The government has also sanctioned working capital worth Rs 6700 cr for procurement of agriculture to state Government entities since March 2020.

This is the 2nd press conference by Nirmala Sitharaman in 2 days after the announcement of special relief package in the wake of Covid-19 pandemic.

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Among other important announcement, Sithraman said taht 14.62 crore man-days generated up to 13 May under MNREGA with Rs 10,000 cr spend, says FM Sitharaman on employment for migrant workers. Extending EPF Support for business and organised workers for another 3 months for salary months of June, July and August 2020 - will provide liquidity for workers in MSME and other Businesses.