MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S. S. PALANIMANICKAM )
(a): The State-wise details of the number of projects sanctioned during the last three years for irrigation projects, construction of small irrigation tanks, construction of roads and bridges under Rural Infrastructure Development Fund (RIDF) are given in Annexure-IA, IB and IC.
(b): The State-wise details of amount released under RIDF are given in Annexure-II.
(c): The rate of interest on loans-to State Governments under various tranches of RIDF is indicated below:
Tranche Rate of Interest (%)
RIDF-I 13
RIDF-II 12
RIDF-III 12
RIDF-IV 7
RIDF-V 7
RIDF-VI 7
RIDF-VII 7
RIDF-VIII 6.5
RIDF-IX 6.5
(d) & (e): The rates of interest under RIDF are decided by Reserve Bank of India (RBI). In response to the requests of various state Governments for reduction of interest rate under RIDF, RBI had reduced the interest rate on loans under RIDF from 12.0% (RIDF-IV & V), 11.5 (RIDF-VI) and 11.0% (RIDF-VII) to a uniform rate of 7.0% with effect from 1` November, 2003. The interest rate/lending rate under RIDF-VIII onwards is linked to bank rate i.e. 0.5% above bank rate. Thus, the present lending rate under RIDF-VIII onwards is 6.5%, the prevailing bank rate being 6%.
