India will issue bonds and convertible notes to finance aqua financing from a new bank to help finance aquaculture in India’s second-biggest economy, Finance Minister Arun Jaitley said in a speech on Thursday.
The Indian government has earmarked about Rs.500 crore for aquaculturist loans, according to a copy of Jaitly’s speech.
The loan will be used to support aquacultural development.
Jaitlyn’s remarks came a day after the Finance Ministry said the government has allocated more than Rs.1,200 crore to finance the financing of aquaculics projects in the country, including an order to issue Rs.2,500 crore to Tata Aquaculture for the purchase of 2,500 hectares (5,000 acres) of land and Rs.3,000 crore to a private company to buy land.
The government will also issue a memorandum of understanding (MoU) with a local investor group for the acquisition of 2.7 hectares (6.6 acres) for aquascaping in Jharkhand.
The MoU, signed by the government on Feb. 15, is intended to facilitate the purchase and expansion of aqua farming, Jaitlin said.
The announcement came after India’s government on Wednesday approved a $20 million loan for aquaponics research and development by the Ministry of Science and Technology, Agriculture and Rural Development, the country’s central research agency.
The funds will be spent on a Rs.6,000-crore project in Jadhavpur, one of the largest and fastest-growing regions of the country.
The Aquaponics India initiative aims to develop new technologies that will help farmers improve productivity by reducing water use, soil erosion and pesticide use.
The $20-million loan was approved by Jaitily, who is also a member of the Cabinet Committee on Economic Affairs.
“The Aquacultura project will bring about significant value to the country as it will help in the rapid development of the agricultural sector and provide a large scale of employment opportunities,” Jaitaly said.
Jaitlyn said the loan will allow the government to provide financial assistance to farmers who have not been able to purchase land for aquiculture.
“This is a significant step towards achieving the goal of providing affordable, viable and sustainable food to the people,” he said.
Aquacultural land is among the most scarce resources in the world and India’s aquacenter is a prime example of how a sustainable farming system can be created, Jain said.
Jain noted that aquacancy is a major source of carbon emissions, which are responsible for climate change. For more: