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Business Initiatives Department
1. Genesis
 
In the year 2010, NABARD launched a repositioning exercise with an objective of finding new business for the bank in the wake of changing economic development and environment . As a consequence of this exercise, a new department named, viz. Business Initiatives Department (BID) was formed to drive direct credit products of new business opportunities identified during the repositioning exercise.

2. Core Functions of the Department:
 
BID operates following three credit products:

A.  NABARD Infrastructure Development Assistance (NIDA)

NIDA is a line of credit for funding rural infrastructure projects under the following four channels:
 
1.  Funding directly to State Government and State-owned Institutions for rural infrastructure development projects
2.  Funding PPP infrastructure projects in rural areas, developed by: 
  • State-owned Institutions
  • Co-operatives
  • Local Bodies
  • Companies
  • Self-Help Group federations
  • Non-Governmental Organizations
  • Community-Owned Organizations
  • Producer Organizations 
  • Special Purpose Vehicles (SPV) promoted by above organisations
3.  Funding non-PPP, rural infrastructure projects developed by Registered entities like Companies and Co-operatives
4.  Funding NBFC- Infrastructure Finance Companies and Public Financial Institutions/Companies for rural infrastructure development projects

B.   Direct Refinance Assistance (DRA) to District Central Cooperative Banks (DCCBs)
 
Implementation of the revival package recommended by Vaidyanathan Committee has enabled District Central Cooperative Banks (DCCBs) to raise financial resources from sources other than State Cooperative Banks (StCBs.)
In response, NABARD has designed a short-term multipurpose credit product for financing directly to DCCBs and StCBs.

C.   Credit Facility for Federations (CFF)
 
CFF was launched with the objective of providing short-term loans to State Marketing /co-operative federations and corporations involved in procurement and marketing of Agricultural commodities and supply of agricultural inputs like fertilizers, pesticides etc.
 
Under CFF, credit support is available for working capital loans (less than 18 months) for procurement of agricultural and allied commodities, supply of agricultural inputs, supply chain management, value addition etc. CFF also covers term loans for setting up of marketing infrastructure, including grading and value addition.

3. Broad Achievements of the Department:

NABARD Infrastructure Development Assistance (NIDA)
 
As on 31st March 2016, cumulative sanctions under NIDA stood at Rs. 11,384.00 crores and the total disbursement stood at Rs. 3,690.00 crore.
 
The year-wise progress is given below:
 
                                             (Rs in Crores)
Year Sanctioned Disbursed
2010-11 42 0
2011-12 891 423
2012-13 2701 860
2013-14 1149 575
2014-15 682 610
2015-16 5919 1222
Cumulative 11384 3690

Since inception, 41 projects have been sanctioned under NIDA covering various sectors like:
 
•    Power transmission
•    Renewable energy
•    Restoration of power distribution
•    Roads and bridges
•    Warehousing
•    Irrigation
•    Drinking water
•    Sanitation

The major States covered under NIDA are Karnataka, Tamil Nadu, West Bengal, Andhra Pradesh, Gujarat, Rajasthan, Haryana, Chhattisgarh, Punjab, Goa and Madhya Pradesh.

Direct Refinance Assistance (DRA) to District Central Cooperative Banks (DCCBs)
 
As on 31st March 2016, a total of 90 DCCBs have been financed under DRA, involving cumulative sanction of Rs. 23,302 crores and disbursement of Rs. 17,164 crores.
 
 (Rs in Crores)
Year Sanctioned Disbursed
2010-11 100 0
2011-12 1547 938
2012-13 3385 2363
2013-14 4531 3430
2014-15 5680 4893
2015-16 7959 5540
Cumulative 23302 17164
 
The major categories funded under direct lending include:

•    Crop loans above Rs. 3.00 lakh ( above interest subvention limit)
•    Working capital loans under non-farm sector activities
•    Procurement operations through Primary Agricultural Credit Societies (PACS)
•    Financing against pledge of sugar stock

The States covered under DRA are Andhra Pradesh, Telangana, Bihar, Chhattisgarh, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, Uttar Pradesh & Uttarakhand.
 
Credit Facility for Federations (CFF)
 
Since the inception of CFF till financial year 2015-16, cumulative sanctions have been Rs. 18,649.00 crores and total disbursement stood at Rs. 17,418.00 crore. Year-wise sanctions and disbursements under CFF are given below:  
 
   (Rs in Crores)
Year Sanctioned Disbursed
2012-13 3039 2500
2013-14 3110 2750
2014-15 6265 5155
2015-16 6235 7013.50
Cumulative 18649 17418.50

The major States covered under CFF are Chhattisgarh, Rajasthan, Odisha, Gujarat, West Bengal, AP & Telangana, Karnataka and MP.

Contact Information:
P. V. S. Suryakumar
Chief General Manager
2nd floor, 'A' Wing
C-24, 'G' Block
Bandra-Kurla Complex, Bandra (East)
Mumbai 400 051
Tel : (91) 022 26524693
Fax : (91) 022 26530067
E-mail: bid@nabard.org