RULES FOR MEDIUM TERM MINOR IRRIGATION LOANS
What is minor irrigation?
Any irrigation activity for the use of ground water, which benefits an area between 3 acres to 2000 hectares, is called Minor Irrigation activity. Activities which are classified under Minor Irrigation are:-
FINANCING DUGWELLS/ TUBEWELLS
Dark, Grey & White areas
Spacing norms
There should be reasonable distance between one tube well /dug well and another so that adequate ground water is available to them. This spacing norm is provided by NABARD and is different from one Block to another Block ranging from 300 ft. to 500 ft.
Ground water clearance certificate
A ground water clearance certificate should be obtained from the concerned department.
Command area
The area to be benefited by a dug well should be a minimum of 5 acres (including the area to be benefited by sale of water).
However, the above technical data are not sacrosanct and before sanction of each case, the scheme and the location are to be vetted by the concerned Technical Department of the Government of West Bengal or any accredited institution in the field.
Eligibility
Members of PACS’ (including LAMPS, FSCS etc.), PACS’ and Nominal members of the Bank (in exceptional cases) are eligible for such finance.
Amount of Finance / Unit Cost
The quantum of finance should be as per the unit cost fixed by NABARD RO, if any, or as may be decided by the Bank.
Margin
30% (thirty per cent) of the Project cost shall be born by the borrower. A member-society shall have to purchase requisite “C” Class Share for the loan.
Disbursement
In 3-4 installments, depending on the progress of the work in such a fashion that the last installment is disbursed in pre-monsoon period.
Repayment
The loan shall be repaid in quarterly or half-yearly installments, including suitable moratorium period depending upon the type of crop cultivated by the farmer. Total period of repayment will be 5 years.
Rate of interest
As may be fixed by the Bank from time to time.
Security
Other conditions
1) Along with the application following documents should be obtained:- a) Quotation b) Land records like sale deed, parcha/ mutation certificate, tax receipt etc., and c)Search-cum-non-encumbrance certificate in respect of the land under possession and d) Project economics. 2) The Branch shall submit a report on inspection of the command area, verification the past loan repayment records of the borrower from the records of the PACS’ and other Financial Institutions of the area and the competence of the borrower.
Appraisal and Sanction
All loans of this type shall be appraised by the Branch Manager himself or any official authorized by him with reference to the Loan Manual of the Bank specifically recommended by the Branch Manager/ Manager of the Branch, processed at the Regional / Head Office level and then considered and sanctioned by the appropriate Committee of the Bank duly authorized by the Board of Directors from time to time or by the Board of Directors itself.
FINANCING PUMP SETS FOR LIFTING WATER FROM WELL
What is a pump set?
Capacity of a motor
What type of pump system should be financed?
However, the above technical data are not sacrosanct and before sanction of each case, the scheme is to be vetted by the concerned Technical Department of the Government of West Bengal or any accredited institution in the field or a Technical Expert acceptable to the Bank.
Eligibility for financing
Margin
30% of the Project cost shall be borne by the borrower.
Rate of Interest
As may be fixed by the Bank from time to time.
Security
Repayment period
3 to 5 years and the grace period is NIL
Insurance
The borrower should arrange for insurance cover for the full value of the asset under comprehensive policy with Bank’s clause. The expiry of the policy should be diarised and the arrangement should be made to get the policy renewed well before the date of expiry.
Other conditions
Appraisal and Sanction
All loans of this type shall be appraised by the Branch Manager himself or any official authorized by him with reference to the Loan Manual of the Bank specifically recommended by the Branch Manager/ Manager of the Branch, processed at the Regional / Head Office level and then considered and sanctioned by the appropriate Committee of the Bank duly authorized by the Board of Directors from time to time or by the Board of Directors itself.