Pradhan Mantri Krishi Sinchayee Yojana

Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) was launched in 2015-16 with an aim to enhance physical access of water on farm and expand cultivable area under assured irrigation, improve on farm water use efficiency, introduce sustainable water conservation practices etc. Under PMKSY, major and medium irrigation/ multipurpose irrigation projects are being funded under PMKSY-AIBP and Repair, Renovation and Restoration (RRR) of Water Bodies, surface Minor Irrigation (SMI) projects and Command Area Development & Water Management (CADWM) projects are being funded under PMKSY – Har Khet Ko Pani (HKKP).

The Union Finance Minister announced in his Budget Speech 2016-17 creation of a dedicated Long Term Irrigation Fund (LTIF) in NABARD with an initial corpus of about Rs.20,000 Crore to be contributed through budgetary resources of Government of India, market borrowings to be raised by National Bank for Agriculture and Rural Development (NABARD), etc. In turn, the Union Cabinet has approved the proposal of Ministry of Water Resources, River Development and Ganga Rejuvenation (MoWR, RD & GR) for establishment of a Mission for completion of prioritized irrigation projects and funding arrangements. The LTIF would be utilized by the Central and State Government to bridge the requirement of funds for completion of the identified (presently 99) irrigation projects, including CAD works.


Government of India has identified NWDA to act as an Agency for borrowing resources from out of LTIF, as also to release funds as Central Assistance to the State Governments towards the identified irrigation projects. Accordingly, a Memorandum of Agreement (MoA) made on the 06.09.2016. The MoA was made between the Secretary, MoWR, RD & GR, GoI (as the first party), NWDA (as the second party) and NABARD (as the third party).

VII.1.Management of loans received from NABARD under PMKSY

It is decided to manage the loans received from NABARD as given below:

  • Release of Central Assistance to States after receiving approval from NABARD
  • Processing of proposals through Project Monitoring Unit
  • Preparation of payment of loan plan for the current year 2016-17
  • Third party monitoring visits through Project Monitoring Unit
  • Updation in MIS system through Project Monitoring Unit

VII.2.Establishment of Project Monitoring Unit: A Project Monitoring Unit (PMU) will be established under NWDA to work in coordination with CWC for monitoring and updation of information (MIS) under PMKSY.

VII.3. Processing of Proposal: The PMU shall prepare a comprehensive note based upon monitoring reports of the third party and CWC regarding eligibility of release of Central Assistance (CA) funds to States concerned. Further, recommendation to NABARD shall also be given regarding release of States share.

VII.4. Release of Central Assistance Funds to States: NWDA shall act as a pass through Agency for CA to be provided to the States concerned through NABARD funding. It shall ensure that funds received from NABARD are released for projects within one day of its receipt from NABARD so as to avoid any parking of funds.

VII.5. Third Party Monitoring: Based on joint proposals received in missions, third party monitoring visits would be planned in such a way that such reports can be made available before release of next instalment. Further, the visits of third party shall be planned keeping in view of the visits that shall be made by the CWC.

VII.6. NABARD Funding under PMKSY–AIBP: The PMU to be established under NWDA will help NWDA to process for NABARD funding and release of CA to the concerned States under PMKSY-AIBP (Acelerated Irrigation Benefit Projects). The PMU will be headed by an Officer of the rank of Chief Engineer with supporting units comprising of experts.

Rs. 1500 Crore was distributed to the Governments of NWRWS&K Department, Gujarat; Madhya Pradesh; Odisha; Telangana; Manipur; Maharashtra; Punjab; Karnataka; and Rajasthan under PMKSY fund upto October, 2016.

Further Rs. 499.91 Crore was distributed to the Governments of Karnataka; Madhya Pradesh; Odisha; Telangana; and Maharashtra and Rs.1981.00 Crore was released as 1st instalment to Polavaram Project Authority under PMKSY fund in December, 2016. For more detail... External link