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Cheap Credit For Infra

With Novel Corona Virus (COVID-19) Pandemic Situation, State Government is opting for low cost borrowing for creation of infrastructure.

Ashok Kumar Meena, Principal Secretary Finance is busy in arranging funds for developmental and infrastructure projects from various sources.
 
While funds flow has gone down due to COVID-19 Pandemic, opting for low cost borings is one of the foremost options left for the State Government.
 
Revenue Generation has faced serious bottlenecks and there is wide gap in actual collection and targeted estimate.
 
Both Tax and Non Tax Revenue Collection has been badly hit and at least 40 Percent shortage is experienced during last two months of Fiscal 2020-21.
 
During April and May collections have nosedived and all the sectors have reported less collection.
 
Own Tax sources like VAT, GST, Excise, Stamps and Registration have gone down.
 
Similarly Non Tax Sector also facing tough time with collection from Mining and Metallurgical Industries has gone down seriously.
 
So arranging funds for Capital Expenditure is a Herculean Task for the authorities in Department of Finance, admit officials.
 
Under this backdrop, Department of Finance is harping on completion of ongoing and incomplete infrastructure projects.
 
Secondly, the State Government is taking steps to avail, cheap source of borrowing from various sources.
 
And Rural Infrastructure Development Fund (RIDF) maintained by NABARD is a major source of credit line.
 
Accordingly, Mr.Meena has requested all the Secretaries of the Departments to utilize RIDF Loans for creation of Rural Infrastructure.
 
Creation of Rural Infrastructure plays a major role in the growth of Rural Economy, said Mr.Meena in his letter to All Secretaries, an official source said.
 
RIDF Funding is available for as many as 37 categories of activities under three broad categories like Agriculture, Allied Sector, Social Sector and Rural Connectivity.
 
As these sectors are eligible for funding from RIDF, Mr.Meena has requested the Secretaries to submit proposals at the earliest to process the same.
 
Mr.Meena said RIDF Loan from NABARD is one of the cheapest sources of borrowing for creation of rural infrastructure.

There are several projects, which are already in advanced stage of implementation or readiness, for these projects, RIDF funds could be claimed immediately.
 

 
 RIDF is being implemented for completion of the ongoing and incomplete infrastructure development projects in the State.

 

 
 The fund is being supported by RIDF corpus managed by NABARD and State Government’s own contribution in almost 85:15  share basis.


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