Explanation:

Rupees 5000 crores approve for dedicated micro irrigation fund.
The government approved a dedicated Rs 5,000 crore fund to bring more land area under micro-irrigation as part of its objective to boost agriculture production and farmers income.
The fund has been set up under NABARD, which will provide this amount to States on concessional rate of interest to promote micro-irrigation, which currently has a coverage of only 10 million hectares as against the potential of 70 million hectares.

Hence option 1 is correct.