The Farm Sector Development Department (FSDD) was created out of NABARD’s erstwhile Development Policy Department - Farm Sector.
The objective of the department is to formulate policies and implement multifarious farm sector initiatives under various programmes aimed at:
- Conserving and managing natural resources
- Accelerating ground level credit flow by rural financial institutions
- Promoting incremental agricultural production and productivity
- Generating rural employment
- Raising the standard of living of rural poor through credit and grant
- Formulating appropriate policies concerning agriculture and allied sector activities, natural resource management, climate change adaptation and mitigation etc., within the overall policy framework of Government of India
- Climate change adaptation and mitigation
FSDD manages the following funds
- Farm Sector Promotion Fund (FSPF)
- Watershed Development Fund (WDF)
- Tribal Development Fund (TDF)
- Producers Organization Development Fund (PODF)
- ‘Producers’ Organization Development and Upliftment Corpus’ (PRODUCE) Fund
- Central Sector Scheme for Promotion and Nurturing of Farmers Producers Organisations (FPOs)
- Climate Change Fund (CCF)
In addition to above funds, NABARD is also the National Implementing Entity (NIE) of Adaptation Fund (AF) and National Adaptation Fund for Climate Change (NAFCC) and Direct Access Entity (DAE) of Green Climate Fund (GCF).
2. Core functions of the department
a. Farm Sector Promotion Fund (FSPF)
Farm Sector Promotion Fund (FSPF) was created in NABARD by merging two erstwhile funds, viz. Farm Innovation and Promotion Fund (FIPF) and Farmers' Technology Transfer Fund (FTTF), on July 26, 2014. The Fund focusses on promoting innovative and feasible concepts/projects and transfer of technology for enhancing production and productivity in agriculture and allied sectors.
b. Watershed Development Fund (WDF)
NABARD has been implementing watershed development projects since the inception of Indo-German Watershed Development Programme (IGWDP) in India during 1990s. The participatory watershed development concept and methodology has proved to be a successful initiative in enhancing the productivity, production, and improving livelihood security of rural community.
To replicate the initiatives further in the drought prone areas of the country, the Union Finance Minister, in his budget speech for 1999-2000 had announced creation of a Watershed Development Fund (WDF) in NABARD. Hence, Watershed Development Fund (WDF) was set up in NABARD in 1999-2000 with an initial corpus of Rs. 200 crore contributed by GoI and NABARD in equal proportion.
c. Tribal Development Fund (TDF)
NABARD has been supporting tribal development through concessional rates of refinance, separate line of credit to agencies supporting tribal families, promotional activities, etc. However, a key concern for NABARD has been the sustainability of tribal livelihoods.
Based on the successful experience of Adivasi Development Programmes, NABARD embarked upon an ambitious programme of replicating the wadi (a small orchard of one or two acre with multiple crops) model across the country. In this direction, Tribal Development Fund (TDF) was created by NABARD with initial corpus of Rs 50 crore, out of its profits for the year 2003-04. The Fund has grown over the years and the credit balance as on March 31, 2021 was Rs 1,336 crore. The projects under TDF are implemented by collaborating with State Governments, Krishi Vigyan Kendras (KVKs), NGOs and corporates. A comprehensive tribal development programme having wadi (small orchard)as the core component is being implemented for improving the livelihood of tribal population.
d. Promotion of Farmer Producer Organisations
Farmer Producer Organisation (PO) is a legal entity formed by primary producers, viz. farmers, milk producers, fishermen, weavers, rural artisans, craftsmen, etc. Producer Organisations have been considered to be one of the effective means of linking small producers with the agricultural value chain for the purpose of enhancing net income of producers. NABARD provides financial and development support to FPOs through the following programmes:
i. Producers Organisation Development Fund (PODF)
Recognising the strength of POs, NABARD created a dedicated fund “Producers, Organisation Development Fund (PODF)” during 2011, to support these organisations on three levers i.e. credit facilitation, capacity building and market linkage support. In addition, grant support is also made available for business incubation services, skill building, documentation of successful models, ICT application in business management, etc.
NABARD has also introduced a new scheme i.e. Producers’ Organization Development Fund – Interest Differential (PODF-ID) as the corpus has been augmented by way of appropriation of interest differential out of RIDF, for the promotion and nurturing of 3,000 FPOs.
ii. ‘Producers’ Organization Development and Upliftment Corpus’ (PRODUCE) Fund
PRODUCE Fund of Rs 200 crores was created by the Government of India in NABARD in 2014-15 for building 2,000 Farmer Producer Organizations (FPOs) in the country. The aim of the PRODUCE Fund is to promote new FPOs and support their initial financial requirements, to make them credit worthy, commercially vibrant and sustainable business enterprise of farmers.
iii. Central Sector Scheme for Promotion and Nurturing of Farmers Producers Organisations (FPOs)
The GoI has announced Central Sector Scheme on Formation and Promotion of 10,000 FPO and NABARD is one of the Implementing Agencies. The aim of the scheme is to promote new FPOs and support their initial financial requirements to make them credit worthy, commercially vibrant, and as a sustainable business enterprise for farmers. BIRD, Lucknow as Nodal Training Institute for the scheme A Credit Guarantee Fund of Rs 1,000 crore with equal contribution from GoI and NABARD has been set up under NABSANRAKSHAN, a subsidiary of NABARD.
- i. Formulating policies in alignment with Government policies and programmes on Climate Change, Agriculture and Agriculture Risk Mitigation, Farmers Club, Environmental, Social and Gender Issues;
- ii. Reviewing existing policies concerning development of agriculture and allied sector;
- iii. Framing appropriate operational guidelines for implementation of such policies through credit, promotional and developmental interventions;
- iv. Attempting for development of policy, design of intervention for reducing risks in agriculture. Appraisal of environmental and social risk and analysing the Social Cost Benefit of proposal posing to Adaptation Fund, Green Climate Fund and National Adaptation Fund for Climate Change;
- v. Digitising data/information pertaining to different programmes/ products;
- vi. Collaborating with developmental institutions of relevance.
f. Climate Change actions
- i. Under its Climate Change agenda, NABARD aims to address the challenges posed by climate change, particularly in the areas of agriculture and rural livelihood sectors in India.
- ii. NABARD, in the capacity of National Implementing Entity (NIE) of Adaptation Fund (AF) and National Adaptation Fund for Climate Change (NAFCC) and Direct Access Entity (DAE) of Green Climate Fund (GCF), aims to channelise national, international and private finances for adaptation and mitigation activities in India.
- iii. NABARD facilitates identification of project ideas/concepts based on State Action Plan for Climate Change (SAPCC) and its implementation with an objective to promote climate resilient and sustainable development.
- iv. Capacity building and sensitisation of stakeholders including State Governments, institution’s own staff and partner institutions on climate finance and accessing resources from National and International funding mechanisms.
g. Technical Advisory Group
- i. Providing technical inputs and advisory services/ technical opinion/ comments on various policy matters in the areas of agriculture and allied sectors to Central/ State Governments, Banks and Other Organisations;
- ii. Preparing model schemes/ bankable model projects and unit costs in the areas of agriculture and allied sectors;
- iii. Preparing strategy papers/sectoral papers in the areas of agriculture and allied sectors;
- iv. Participating on various technical committees/meetings/ conferences/ seminars in national and international level.
3. Broad achievements of the Department (As on March 31, 2021)
a. Farm Sector Promotion Fund (FSPF)
During 2020-21, Rs 17.67 crore was disbursed under FSPF for various promotional initiatives in agriculture such as innovative projects in agriculture and allied sectors, enhancing agriculture productivity and income of the farmers, creating market access, promotion of climate resilient agriculture in vulnerable / distressed districts, agricultural value chains, Farmers’ Clubs and their collectives including training and capacity building of farmers, etc.
166 projects were sanctioned during the year 2020-21 under Detailed Project Report (DPR) mode, involving a grant commitment of Rs 20.01 crore. The projects were sanctioned for demonstration of innovative technologies in the areas of cultivation of vegetable, fruits and cut flowers, Integrated Farming System, Promotion of Local Organic Farmers Groups under Participatory Guarantee System of India, Zero Budget Natural farming, IOT in agriculture, Conservation and management of Honey Bees, Bio floc fish culture, value chain development, Integrated Livestock Development Centre, Agri-Export Facilitation Centre etc. An amount of Rs 12.57 crore was disbursed as grant during the year towards implementation of various new and ongoing projects.
Further, under Capacity Building for Adoption of new Technology (CAT) programme, 270 exposure visits were undertaken to build the capacity of around 8,022 farmers in collaboration with select Research Institutes such as KVKs, SAUs, ICAR and ICRISAT, etc. for adopting new/ innovative methods of farming. A grant assistance of Rs 2.12 crore was provided during the year under the CAT initiative.
b. Watershed Development Fund (WDF)
NABARD entered into watershed development activities through KfW-assisted Indo German Watershed Development Programme in the year 1992 in Maharashtra, wherein participatory approach of watershed development was launched in India on pilot basis for the first time. Subsequently, in order to demonstrate effectiveness of these interventions, Watershed Development Fund (WDF) was set up in NABARD in 1999-2000 with an initial corpus of Rs 200 crore contributed by GoI and NABARD in equal proportion. The fund has been augmented over the years from the interest differential earned under RIDF and interest accrued on the unutilised portion of the Fund.
As on March 31, 2021, the cumulative sanction under all programmes stood at ₹ 2,389.51 crore covering an area of 23.42 lakh ha. An amount of ₹ 1902.46 crore has been released so far, against 3,401 projects sanctioned, 1,914 projects have been completed successfully.
The programme- wise details are given as under:
₹ in crore
||No. of Projects
||No of projects completed
||Area (lakh ha)
||Amt sanctioned (Rs. lakh)
||Amt released (Rs. lakh)
|Indo-German Watershed Development Programme (IGWDP-4 States)
|Watershed Development Fund (WDF)
|Integrated Watershed Development Programme (IWDP) - Bihar
|Kutch Drought Prone Programme (KDPP) - Gujarat
|WDF-Climate Proofing (CP)
|KfW Soil Projects
|Sustainable Development Plan (SDP)
|Indo-German Watershed Development Programme –Climate Proofing (IGWDP-CP)
|Springshed based watershed development programme
Currently, the following Watershed Development Programmes are being implemented by NABARD:
- Participatory Watershed Development Programme under Watershed Development Fund (WDF)
- Climate Proofing of Watersheds under WDF Programme
- Soil Restoration and Rehabilitation of Degraded Soils for Food Security (Climate Proofing Soil Project) through KfW, Germany - KfW Climate Proofing
- Sustainable Development Plan
- Springshed-based Development Projects
- Reclamation of saline and alkaline soils
- Integrated Water Management Scheme
- Web-based monitoring of watershed projects
i. Participatory Watershed Development Programme
Participatory watershed development programmes are implemented in two phases – (i) Capacity Building Phase (CBP) and (ii) Full Implementation Phase (FIP) in participatory mode, with the active involvement of Village Watershed Committees (VWCs) and Project Facilitating Agency (PFA). The projects are being implemented in 19 states and Union Territories, namely Andhra Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand and West Bengal.
As on March 31, 2021, 1,066 WDF projects have been sanctioned with financial outlay of Rs 797.30 crore, against which an amount of Rs 484.89 crore has been disbursed.
ii. Climate-proofing in watershed projects
To reduce vulnerability of climate change in rain-fed areas and enhance agriculture productivity, production, livelihood and income of the farmers, NABARD is implementing climate change adaptation initiatives in its watershed projects under WDF in 10 states (Andhra Pradesh, Bihar, Gujarat, Himachal Pradesh, Jharkhand, Maharashtra, Madhya Pradesh, Odisha, Telangana and Tamil Nadu). These projects are planned and designed based on the climate change vulnerability assessment in various sectors of agri and allied activities by the watershed communities. Based on the vulnerability of the sectors and the community to climate change impact, the project interventions are identified by the watershed communities and implemented with financial support from NABARD under WDF. As on March 31, 2021, 182 climate proofing projects were sanctioned with a financial commitment of ₹90.79 crore of which ₹ 61.59 crore released.
iii. Soil Restoration and Rehabilitation of Degraded Soils for Food Security (Climate Proofing Soil Project) through KfW, Germany
The soil restoration programme for sustainable food security aimed to address the issues of soil and water conversation, land reclamation, improving soil productivity and health, enhancing crop resilience to climate change, enhancing opportunities for livelihood and income generation for communities vulnerable to climate change, etc. in completed watershed projects area. The soil restoration programme for sustainable food security (Phase I) has been implemented by NABARD in five states namely, Karnataka, Telangana, Andhra Pradesh, Odisha and Chhattisgarh with a grant support of €10 million (₹70 crore) from KfW, Germany over a period of four years from December 2015 to December 2020. It covers 32 districts and 123 completed watershed projects under WDF in the select states. The districts within the identified states were selected based on the Rainfed Area Priority Index (RAPI) developed by Central Research Institute for Dryland Agriculture (CRIDA, Hyderabad) and Indian Agricultural Statistics Research Institute (IASRI). As on March 31, 2021, implementation of 123 projects were completed with financial commitment of ₹66.00 crore, of which an amount of ₹65.59 crore has been disbursed.
Implementation of KfW Soil Project Phase- II was started in January 2019 in two states viz. Kerala and Jharkhand, in 55 projects with financial support of € 5 million (₹35 crore) from KfW over the period of four years. As on March 31, 2021, 55 projects were under implementation with financial commitment of ₹36.57 crore, of which an amount of ₹18.23 crore has been disbursed.
Based on the experience of SEWOH Phase- I & II, KfW soil projects have been extended to Bihar, Maharashtra and Tamil Nadu in 48 WDF projects. The programme is being implemented from October 2020 with financial support of € 4.5 million from KfW over the period of four years. As on March 31, 2021, 55 projects were under implementation with financial commitment of ₹40.43 crore, of which an amount of ₹ 0.56 crore has been disbursed.
iv. Sustainable Development Plan (SDP)
Building on the success of the initial watershed programmes, NABARD has reoriented its approach towards sustainable development of watersheds by making the programme much more holistic. The approach includes technology transfer, agriculture extension, credit intensification, Integrated Pest Management (IPM), Integrated Nutrient Management (INM), promotion of Farmers’ Producer Organizations (FPOs), etc. Need-based capacity building and leadership development of the watershed community and convergence of various centrally sponsored schemes/ programmes also form part of the Sustainable Development Plan. As on March 31, 2021, 466 SDPs have been sanctioned, with total financial outlay of ₹45.07 crore of which ₹ 42.33 crore has been released.
v. Springshed Development Watershed Development Programme
Due to adverse impact of climate change in recent years, the springs, which are lifeline of the North Eastern Region (NER), are getting dried up affecting agriculture and livelihood of rural community. In order to revive and rejuvenate these springs and minimise the adverse impact of climate change on water availability both for human consumption and irrigation, especially during off-season, NABARD has launched an innovative and integrated springshed-based participatory watershed development programme in the NER, including Sikkim, on a pilot basis with financial support under WDF since January 2017. Now, these projects are extended to other hilly areas of states of Kerala, Karnataka, Maharashtra, Uttarakhand, Himachal Pradesh and UT of Jammu & Kashmir. As on March 31, 2021, 82 springshed development projects have been sanctioned with financial outlay of ₹16.40 crore, against which ₹7.13 crore has been disbursed.
vi. Pilot projects on reclamation of Saline and Alkaline soils through rain water management with watershed/landscape approach in Punjab and Haryana
Indiscriminate use of agri-inputs especially water and fertilizer, during Post- Green Revolution has resulted in severe land degradation leading to formation of saline and alkaline soils in Punjab, Haryana and Western Uttar Pradesh. In order to demonstrate long-term sustainability of saline and alkaline soil through participatory approach, pilot projects on reclamation of saline and alkaline soils through rainwater management with watershed/ landscape approach are being implemented in Punjab and Haryana. It covers an area of 3,000 ha (2,000 ha for reclamation of alkaline soils and 1,000 ha for reclamation of saline soils) with financial outlay of ₹20.38 crore. Based on MoU executed during December 2019 with ICAR- Central Soil Salinity Research Institute (CSSRI), Karnal, it has been extending technical support in implementation of the programme. As on 31 March 2021, four pilot projects have been sanctioned with financial outlay of Rs.11 Lakh, against which Rs.6.85 Lakh has been disbursed.
vii. Integrated Water Management Scheme (IWMS)
NABARD has conducted Water Conservation Campaign across 250 districts with focus on promoting efficient water conservation/management technologies and other water-smart practices in agriculture during 2017. In order to consolidate the outcomes of water conservation campaign and to carry forward the water conservation agenda more aggressively for mitigating the water scarcity situation and improving agricultural productivity in select vulnerable villagers, NABARD came up with Integrated Water Management Scheme (IWMS) through watershed approach for implementation across 50 districts, including 40 aspirational districts of the country, covering 250 villages across 20 states. As on 31t March 2021, 210 projects (each project covering a cluster of 5 villages) have been sanctioned with total financial outlay of ₹26.46 crore of which ₹21.83 crore released.
viii. Web-based monitoring of watershed projects
NABARD had signed a MoU with National Remote Sensing Centre (NRSC), Hyderabad for the monitoring of watershed projects by leveraging geospatial technologies. Under this initiative, a web portal and mobile app have been developed for uploading the data by Project Facilitating Agencies (PFAs). The portal is facilitating NABARD in real time tracking of physical and financial progress and impact evaluation (change detection) of watershed projects (‘pre’ and ‘post’ stages) through analysis of satellite images, generation of MIS reports on real time basis and mapping as well as geo-tagging of assets created in the project areas through mobile app.
c. Tribal Development Fund (TDF)
As on 31 March 2021:
- Total number of projects sanctioned: 835
- No. of states and union territories covered under the programme: 29
- Number of tribal families benefitted: 5,60,109
- Total financial assistance sanctioned from TDF: Rs.2,378.22 crore
- Grant assistance: Rs.2,237.53 crore
- Loan assistance: Rs.140.69 crore
- Total financial assistance disbursed: Rs.1,687.94 crore
- Grant assistance: Rs.1,649.21 crore
- Loan assistance: Rs.38.73 crore
State-wise cumulative status of TDF projects as on March 31 2021 is given below:
₹ in crore
||Name of State/ Union Territories
||No. of Projects
||No. of Families
||Total Financial Assistance Sanctioned
|| A & N Islands
|| Andhra Pradesh
|| Arunachal Pradesh
||UT of Jammu & Kashmir and Ladakh
||HO sanctioned (bee keeping in 2 States)
d. Promotion and Development of Farmer Producer Organizations
No. of FPOs sanctioned
No. of FPOs registered
No. of FPOs existing
No. of total Members
No. of FPOs credit Linked
No. of FPOs market linked
No. of POPIs
No. of RSA
No. of FPOs digitised
No. of members digitised
NABARD has developed a portal named ‘NABFPO.IN’ and digitised the FPO data including members’ profiles for use by the stakeholders. Broad details of FPOs are available on NABARD website (www.nabard.org).
Performance Measurement Tool has been developed for the assessment and monitoring of overall performance and facilitating designing of need based interventions and credit linkages for building robust organisation.
To increase the credit flow and to make the banks aware about the type of credit needs of FPOs, NABARD has developed guidance note on financing FPOs by Banks.
e. Climate Change - projects
Under Adaptation Fund (AF), six projects were approved by AFB with a total outlay of USD 9.8 million, benefitting 57,802 vulnerable people in six States viz. West Bengal, Andhra Pradesh, Madhya Pradesh, Uttarakhand and Tamil Nadu and Rajasthan, thereby exhausted the country cap of USD 10.0 million fixed by Adaptation Fund Board on an interim basis. The projects are in different stages of implementation.
Projects details are available at: Click Here
NABARD was accredited as Direct Access Entity (DAE) in the 10th Board meeting of the Green Climate Fund (GCF) in July 2015. NABARD is eligible to submit large size projects having outlay of more than USD 250 million. Under GCF, two proposals submitted by NABARD were sanctioned by GCF Board.
The details of the projects are as under:
||Name of the Project
||Total project outlay(USD)
||Project Co-Financing details(in USD)
||Line of credit for solar rooftop segment for commercial, industrial and residential housing sectors
|| Tata Cleantech Capital Limited (TCCL)
|| 250 mn
||GCF- 100 mn
|TCCL- 100 mn
|Project Developer’s equity- 50 mn
||Ground water recharge & solar micro-irrigation to ensure food security and enhance resilience in vulnerable areas of Odisha
|| Dept. of Water Resources, Govt. of Odisha
|| 166.3 mn
||GCF- 34.35 mn
|World Bank- 7.1 mn
|State Convergence fund and community- 124.9 mn
Additional projects details are available at: Click here
Under National Adaptation Fund for Climate Change (NAFCC), 30 projects with total grant assistance of Rs.847.47 cr. were sanctioned to 25 States (viz. Punjab, Orissa, Himachal Pradesh, Manipur, Tamil Nadu, Kerala, Mizoram, Chhattisgarh, Meghalaya, Telangana, Andhra Pradesh, Karnataka, Madhya Pradesh, Haryana, West Bengal, Assam, Maharasthra, Gujarat, Sikkim, Rajasthan, Bihar, Uttar Pradesh, Jharkhand, Nagaland and Arunachal Pradesh and two UTs viz. Puducherry & Jammu. The implementation of NAFCC projects would address climate change related impact on major sectors like water management, agriculture, livestock, coastal and forest eco-system. Apart from 28 state/ UT specific -projects, two multi-state projects are also under implementation. One Regional Project on ‘Climate Resilience Building in Rural Areas through Crop Residue Management” with aggregate grant assistance of Rs.120.66 cr. is being implemented in Punjab, Haryana, Uttar Pradesh and Rajasthan states. Second, A multi-state project on ‘Restoration of degraded landscapes to natural state of ecosystem for climate resilience and livelihood improvement of vulnerable communities’ with grant assistance of Rs.126.10 crore is being implemented in Rajasthan, Telangana and Maharashtra States.
Projects Details are available at: Click here
f. Centre for Climate Change
The Centre for Climate Change setup by NABARD was formally inaugurated on July 20, 2018 at BIRD, Lucknow. The objectives of the Centre are to address capacity building needs of the stakeholders concerned, policy advocacy, promoting national and international collaboration by bringing in the knowledge, technology and finance for addressing the climate change related challenges and harnessing the opportunities emerging from climate change, particularly in rural areas and for vulnerable communities.
g. Climate Change Fund
Climate Change Fund (CCF) was set up in the year 2015-16 with the outlay of Rs 5 crore from out of profit of NABARD. The Fund is being used for promoting and supporting activities relating to Climate Change. Various interventions that would further NABARD’s interest in the areas of climate change adaptation and mitigation will receive priority under the fund. The cumulative disbursement during the FY 2020-21 stood at Rs. 0.97 Crore from the CCF.
- Issue guidelines for ensuring implementation of Environmental, Social and Gender Policy of NABARD;
- Issue guidelines on Gender Action Plan for the period 2020-25;
- Issue guidelines on Development and Financing of Beekeeping and Bamboo Value Chain;
- Issue guidelines on promotion of Local Organic Farmers’ Group;
- Establishment of National Level Farmers Consultative Group to facilitate interaction with farmers for enhanced understanding of policy issues;
i. Technical Advisory Group
- Central Technical Advisory Group (C-TAG) has been constituted at Head Office under 11 major disciplines of agriculture and allied sectors.
- Regional Technical Advisory Groups (R-TAG) has been constituted at 10 major ROs by pooling the resources available at these regions
- Prepared seven National Sectoral papers, 52 model bankable projects and state-wise unit costs.
5. Additional Information
Shri U D Shirsalkar
Chief General Manager
NABARD, Head Office
5th Floor, ‘A’ Wing
Plot: C-24, 'G' Block
Bandra Kurla Complex, Bandra (East)
Mumbai - 400 051
Tel. : (+91) 022 - 26530094
Fax : (+91) 022 – 26530009
E-mail Address: email@example.com
Information under RTI – Section 4(1)(b)