German bank evinces interest to provide loan to ZBNF

Amaravati: The Germany-based Kreditanstalt Fur Wiederaufbau Bank evinced interest in investing zero-based natural farming in Andhra Pradesh.

The representatives of the Bank met Chief Secretary LV Subrahmanyam at the Secretariat here on Thursday and discussed various issues with him.

It may be recalled that the State government had prepared climate resilient programme as part of zero-based natural farming (ZBNF) at an estimate of Rs 2,479 crore to the Centre which in turn sanctioned it.

The Centre had also given permission to the State government to obtain loan from the German Bank. The Bank has now evinced interest to extend loan of Rs 1,735 crore and the rest of the Rs 744 crore will be borne by the state government.

The Bank, the Centre and the State government are likely to sign the agreement in November regarding the loan.

The German Bank is likely to release the loan amount in two phases—Rs 744 crore in the first instalment and Rs 900 crore in the second instalment.