NABARD to fund Mission Kakatiya, Water Grid

Hyderabad, Feb 21 (INN): The National Bank for Agriculture and Rural Development (NABARD) has agreed to extend financial support to both Mission Kakatiya and Telangana Drinking Water Project.

NABARD's Hyderabad unit Chief General Manager Jiji Mammen called on Chief Minister K Chandrashekar Rao here on Saturday and informed this year they are funding Rs. 360 Crores for Mission Kakatiya and would extend it to Rs. 500 Crores during the next financial year. He told the Chief Minister that the Drinking Water Supply Project would be funded from NABARD Infrastructure development fund as part of RIDF (Rural Infrastructure Development Fund) loan.

Mammen also assured the Chief Minister that with the government guarantee, the NABARD would also bring down the rate of interest. He however, requested to phase out the project into smaller phases so that they could put up some funds every year. Starting from Rs. 1,000 Crores during the financial year 2015-16, NABARD has agreed to fund Rs 5,000 Crores for the entire scheme.

Responding to the proposal from the NABARD Chief General Manager, the Chief Minister said that there were various irrigation projects all over Telangana and from each project 10 percent of water is being reserved for drinking water.

He said once the taps are provided to each and every house in Municipal and urban areas people may come forward to pay for the scheme and the amount so generated will be paid back to NABARD.

The Chief Minister also said that the strategy to implement the drinking water supply scheme is different from normal schemes. The scheme would have a component of laying of pipelines and the work cannot be split into pieces except in some items.

The Chief Minister said that on the whole the scheme requires laying of pipe lines to a tune of 127,000 Kms and as such orders will be placed accordingly on quantum basis. The pump sets are customised and they will be manufactured only on order. The Chief Minister said if need be large amounts of budget will be allocated to the Drinking Water Supply Scheme.

KCR has welcomed the proposal of NABARD's Chief General Manager to fund Rs. 1000 Crores per year. The Chief Minister has also agreed to give some piece of land to NABARD for construction of its building in Hyderabad. In response to a request from the CGM, the Chief Minister has also agreed to meet the Chairman NABARD on 17th March.

The meeting was also attended by Irrigation Minister T Harish Rao, Chief Secretary Dr Rajiv Sharma, Principal Secretary to CM S. Narsinga Rao, Principal Secretary for finance Nagireddy and Secretary Finance Ramakrishna Rao.