In the year 2010, as part of a repositioning exercise, NABARD initiated steps for finding new business avenues for the bank in the wake of changing economic environment. As a consequence, a new department named, Business Initiatives Department (BID) was formed to provide direct credit support under new business initiatives to various clients, which extended assistance for rural development.
Accordingly, the business products being dealt by BID at present are:

NABARD Infrastructure Development Assistance (NIDA)

NIDA is a line of credit for funding rural infrastructure projects under the following three channels:

• Funding rural infrastructure projects directly to State Government and State-owned Institutions.
• Funding PPP infrastructure projects in rural areas, developed directly or through Special Purpose Vehicles promoted by State-owned Institutions, Co-operatives, Producer Organizations, Corporates etc.
• Funding non-PPP, rural infrastructure projects developed by Registered entities like Companies and Co-operatives

Achievements:

Since inception in 2010-11 till 31 May 2024, cumulative sanction and disbursement under NIDA stood at Rs.79365.71 crore and Rs.43863.92 crore respectively.

Progress during current year and last 5 years is indicated below:

Since launch, NABARD has sanctioned 153 projects under NIDA covering following sectors/activities:

• Power transmission
• Renewable energy (wind & solar)
• Restoration of power distribution
• Roads and bridges
• Warehousing / Storage
• Development of Market Yards
• Irrigation
• Drinking water
• Sanitation
• Rural Tourism
• Education
• Communication
• Agri Market Infrastructure
• Health Infrastructure
• Other Social Infrastructure

Direct Refinance Assistance (DRA) to Co-operative Banks

Implementation of the revival package recommended by Vaidyanathan Committee has enabled District Central Co-operative Banks (DCCBs) to raise financial resources from any financial institutions regulated/approved by RBI.

In response, NABARD has designed a short-term multipurpose credit product for financing directly to DCCBs and StCBs for expanding their lending business under specified activities.

Achievements:

Since 2010-11 till 31 May 2024, cumulative sanction and disbursement under DRA to Co-operative Banks stood at Rs.132302.30 crore and Rs.112991.83 crore respectively. The year wise progress during current year and last 5 years is given below:

The important activities funded by DCCBs covered under direct lending include:

• Crop loans above Rs.3.00 lakh (above interest subvention limit)
• Working capital loans
• Procurement operations through Primary Agricultural Credit Societies (PACS)
• Financing against pledge of sugar stocks
• Post harvesting and marketing activities
• Storage/grading/packaging of produce
• Food Credit Consortium

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.

Generally, CFF is extended for working capital loans towards procurement of agricultural and allied commodities, procurement of milk, supply of agricultural inputs, supply chain management, value addition etc.

Achievements:

As on 31 May 2024, cumulative sanction and disbursement under CFF stood at Rs.255971.87 crore and Rs.294000.85 crore respectively.

The year-wise progress during current year and last 5 years is given below:

Dairy Processing & Infrastructure Development Fund (DIDF)/ Animal Husbandry Infrastructure Development Fund (AHIDF)

As announced in the Union Budget 2017-18, Government of India (GoI) instituted a Dairy Processing and Infrastructure Development Fund (DIDF) with a total corpus of Rs.8004.00 crore for a period of 5 years (2018-19 to 2022-23) in NABARD. The objectives of the scheme are modernization and creation of additional infrastructure for milk processing, value addition by producing more dairy products and to help the producer owned and controlled institutions to consolidate their market position in the organized liquid milk market and to ensure optimum price realization to the primary produce.

Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 01 February 2024 has approved merger of DIDF with AHIDF and extension of AHIDF for another three years till 31 March 2026. Further, NABARD is included as loaning entity under the revamped AHIDF scheme. Accordingly, AHIDF will be institutionalized in NABARD for lending in FY 2024-25.

Achievements:

During the operational period of the scheme, 32 projects were sanctioned with cumulative loan amount of Rs.3015.60 crore and cumulative disbursement stood at Rs.2260.93, as on 31 May 2024.

The year-wise progress during the currency of the scheme is given below:

Fisheries & Aquaculture Infrastructure Development Fund (FIDF)

In the Union Budget 2018-19, Government of India had announced the creation of Fisheries and Aquaculture Infrastructure Development Fund (FIDF) with a total corpus of Rs.7522.48 crore for a period of 5 years (FY 2018-19 to FY 2022-23). NABARD will fund the public infrastructure components to State Governments/Union Territories for various fishery-based infrastructure activities such as establishment of Fishing Harbours, Fish Landing Centres, Integrated Cold Chain, Modern fish markets, Fish processing units and other infrastructure facilities. Further, GoI vide letter dated 26 February 2024 has extended the scheme for a period of another 3 years from 01.04.2023 to 31.03.2026 within the already approved fund size of Rs.7522.48 crore.

Achievements:

As on 31 May 2024, NABARD cumulatively has sanctioned term loan of Rs.3248.27 crore for 82 projects to 8 State Governments (Tamil Nadu - 64, Maharashtra - 5, Gujarat - 4, West Bengal - 3, Andhra Pradesh - 3, Goa - 1, Himachal Pradesh - 1, and Kerala - 1). Further, till date cumulative amount of Rs. 903.96 crore has been disbursed so far to 06 States viz., Tamil Nadu, Gujarat, West Bengal, Goa, Himachal Pradesh, and Kerala.

The year-wise progress during current year and last 4 years is given below:

(Rs. in crore)

Rural Infrastructure Assistance to State Governments (RIAS)

NABARD launched a new product Rural Infrastructure Assistance to State Governments (RIAS) with an initial corpus of Rs.15000 crore, with an aim to provide financial assistance to State Governments in Eastern Region, for creating infrastructure that supports rural livelihoods, hinging on 5-J approach – Jan (human being), Jal (Water), Jameen (land), Janwar (livestock) & Jungle (forest). In other words, RIAS would fund all activities that promote “Atmanirbharata” (Self-Reliance) and “circular economy” which eliminates wastes and promotes continual use of precious resources.

The progress during current year and last year is given below:

(Rs. in crore)

Contact Information:

Dr K Inkarsal
General Manager/ Officer-in-charge
2nd floor, 'A' Wing
C-24, 'G' Block
Bandra-Kurla Complex, Bandra (East)
Mumbai 400 051
Tel : (91) 022 68120018
E-mail: bid@nabard.org

Information under RTI - Section 4(1)(b)