1. A watershed development fund has been established with a total corpus of Rs. 200 crores.
2. The objective is to undertake integrated water she development work in selected 100 districts.
3. Under the scheme, two-third of amount is given for grant based projects in the State.
With the help of given codes, find which of the above statement(s) is/are correct?
Correct Answer: (b) 1 and 2 only
Solution:The Union Government has established a Watershed Development Fund (WDF) during the year 2000 with total cost of Rs. 200 crore which includes Rs. 100 crore by Ministry of Agriculture and Rs. 100 crore by NABARD as matching contribution.Initially, the objective of WDF was to undertake integrated watershed development work in selected 100 districts. WDF has two components viz., loan and grant. Two-third of the Fund will be for loans to the State Government for watershed development and one-third will be for grant based activities covering promotional efforts, capacity building etc. Hence, option (b) is the correct answer.