1. Direct refinance to Central Cooperative Banks (CCBs) for meeting working capital and farm asset maintenance needs of the individual borrowers and affiliated Primary Agricultural Cooperative Societies (PACS)

2. Supporting registered Producer Organisations through 'Producers' Organisation Development Fund' to meet the needs of the producers (farmers, artisans, handloom weavers, etc.) by providing timely credit, capacity building of producers, strengthening of Producers' Organisation

3. Supporting PACS to enable it to develop into Multi Service Centre for creating additional business avenues and diversify its activities

4. Supporting state-owned corporations with sustained income streams for making investments in rural infrastructure through special line of credit called 'NABARD Infrastructure Development Assistance (NIDA)'.

Progress under various Business Verticals

1. Direct lending to Central Cooperative Banks (CCBs)

As on 31 March 2012, 24 CCBs have been sanctioned credit limit of 947 crore. In addition, two SCBs (Andhra and Bihar) were sanctioned credit limit of 600 crore. The disbursement under the programme is 938 crore as on 31 March 2012.

2. Financing and supporting Producer Organizations

NABARD has taken an initiative for supporting producers organizations, adopting a flexible approach to meet the needs of producers. In order to give a special focus, the “Producers Organization Development Fund”(PODF) has been set up wef. 01 April 2011, with an initial corpus of 50 crores . Any registered Producers Organization viz, Producers Company( as defined under Sec 581 A in part IXA of Company’s Act 1956), Producers Cooperatives, registered Farmer Federations, Mutually Aided Cooperative Societies, Industrial Cooperative Societies, other registered federations, PACS, etc. set up by producers are eligible under the Fund. Support under PODF is provided as under:

Credit Support under PODF is provided for financial intervention. Support in the form of grant, loans, or a combination of these is also available for capacity building & market interventions.

Since most of the Producer Organisations are having low capital base, scope for NABARD's intervention under PODF has been enhanced to support Producers Organisation for contribution to share capital.

Projects sanctioned under PODF:

During the FY 2011-12, 13 projects to Producers Organisation, have been sanctioned assistance of 32.29 crore (including term loan of 31.31 crore and grant of 0.98 crore).

70 PACS have been sanctioned assistance of 7.75 crore (including term loan of 7.30 crore and grant of 0.45 crore).

The cumulative sanctions under PODF stand at 40.04 crore and disbursements at 7.43 crore.

3. Developing PACS into multi-service centres

PACS being the registered cooperative society has been providing credit and other services to its members. It has been observed that PACS are generally meeting out only the credit requirements of its members. However, there is a need to provide other services to the farmers. Hence PACS should be developed as a unit to meet all their needs. To ensure better returns on the agricultural produce, the farmers should not only be encouraged to use the latest technology to increase agricultural production but also to store their produce in a scientific way to minimise storage losses and provide pledge loan to bridge credit gap.

In order to enable PACS to provide more services to their members and generate income for themselves, an initiative has been taken to develop PACS as multi service centres. This will enable PACS to provide ancillary services to its members and diversify its activities. Assistance under PODF is available to SCB/CCB/PACS for this purpose.

2154 PACS have been developed as multi-service centres through various interventions either from NABARD or from other sources.

4. NABARD Infrastructure Development Assistance (NIDA)

NIDA is a new line of credit available for rural infrastructure investment to state- owned institutions, with sustained income streams which can repay the loan directly to NABARD, without depending upon budgetary resources of the State Government. Assistance will be provided based upon the viability of the borrowing entity and its financial condition, including track record of execution of works and delivery of services related to the specific investment being financed.

NIDA loan will typically be of long tenure (more than 7 years and upto 15 years), with flexible repayment schedules that may be tailored to suit business requirements of the borrower, and carry rates of interest which appropriately reflects the borrower’s risk profile while ensuring business viability. The loans will be guaranteed against appropriate security and collateral. NABARD will also build-in appropriate “Finance+” services like monitoring, quality assurance, programme management, capacity building, etc. to increase the sustainability of the investments in the long run.

In the fiscal year 2011-12, projects worth 891 crore have been sanctioned to various State-owned corporations engaged in the business of solar power generation, power transmission, warehousing and irrigation.

An amount of 423 crore has been disbursed under NIDA during 2011-12.

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