State Project Department
The State Projects Department (SPD) provides loans from the Rural Infrastructure Development Fund (RIDF) with the objective of supporting public sector capital investment in rural infrastructure through providing low cost fund support to State Govts. and State Owned Corporations. Over the years RIDF has become the single largest source of public capital formation in the rural infrastructure space.

1.  Genesis of RIDF
A major policy initiative for rural infrastructure development has been the setting up of RIDF in NABARD in 1995 for financing rural infrastructure projects.
RIDF was set up to fund incomplete infrastructure projects in States due to lack of financial resources. Due to inadequacy of critical infrastructure, banks were unable to channelise their lending to agriculture as per priority sector guidelines. 
The Government of India, therefore, announced in the budget of 1995-96, setting up of Rural Infrastructure Development Fund (RIDF), to be operationalised by NABARD towards financing of, at that point of time, the ongoing rural infrastructure projects in irrigation sector. Subsequently, RIDF was made available for new rural infrastructure projects and its ambit was broadened to cover almost all important aspects of rural infrastructure.
Resources to RIDF are contributed out of the shortfall in lending to priority sectors by Commercial Banks as stipulated by RBI. 
2.  Core functions of the Department
The corpus of a particular tranche of RIDF is decided by Government of India every year. Annual Corpus under RIDF is allocated among all States on the basis of prescribed norms comprising of
Geographical Area of the State
Composite Infrastructure Development Index
Rural Population
Inverse of Credit/Deposit Ratio 
State Performance under RIDF (Utilisation of NA, actual drawals to drawables (%)
Percentage of Borrowing power under RIDF to drawables
Share of irrigation and agri related projects to total sanctions 
The amount of contribution by banks to a particular tranche of RIDF is communicated by RBI   based on the level of priority sector shortfall. The concerned banks are called upon by NABARD as and when funds are required for disbursement. 
NABARD provides financial assistance to the State Governments for projects covering 37 activities broadly classified under 3 heads, viz.,  Agriculture & Related Sector, Social Sector and Rural Connectivity.
Eligible projects are prioritized and submitted by the State Governments through their Finance Departments to the respective Regional Offices (ROs) of NABARD. The projects are appraised by NABARD’s Regional Offices and forwarded to NABARD Head Office where they are placed before a Project Sanctioning Committee (PSC) or Internal Sanctioning Committee (ISC) for consideration for sanction.
Rural Infrastructure Promotion Fund (RIPF) has been created with an initial corpus of Rs. 25 crore and operationalized from 1st September 2011 with an objective to promote capacity building among stakeholders as also for supporting innovative/experimental/promotional infrastructure especially in rural sectors. The activities/projects supported under RIPF are in the nature of experimental prototype projects, which are likely to have positive impact on promotion of sustainable infrastructure development in rural and agricultural sectors.
3.  Broad achievements under RIDF
RIDF Tranche I, was placed with NABARD during 1995-96 with an allocation of Rs. 2,000 crore. The annual corpus has now reached to Rs.28,000 crore under RIDF XXV (2019-20).
Cumulative Sanctions & Disbursements as on 30 June 2019               (in Rs. Crore)
                                                                                                                                                        (in Rs. Crore) 
Particulars No of projects Sanctioned RIDF amount Sanctioned RIDF loan Disbursed Utilisation
Bharat Nirman
18,500 18,500 100%

From RIDF I to XXV, NABARD has sanctioned total 6,53,718 projects involving loan assistance of Rs. 3,28,030 crore to State Governments as on 30 June 2019 (including for warehousing projects).

Of this, an amount of Rs. 2,51,869 crore (77%) has already been disbursed. In addition, Rs. 18,500 crore was sanctioned and disbursed to National Rural Road Development Agency (NRRDA) for rural roads under Bharat Nirman. This translates to total sanctions of Rs.3,46,530 crore and total disbursements of Rs.2,70,369 crore (78%)


Sector-wise Share of Cumulative Sanctions

Sector-wise cumulative RIDF loans sanctioned as on 30 June 2019 (Rs.3,28,030 crore), accounted for:

  • Agriculture, irrigation and allied sectors (44%)
  • Social sector (17%) 
  • Rural roads and bridges (39%)

The estimated cumulative economic and social benefits under RIDF as on 30 June 2019 were as under:

Rural Infrastructure Additional benefits created
Irrigation potential
331.85 lakh ha 
Rural Bridges
11.48 lakh Mts
Rural Roads
4.68 lakh Kms.
Recurring Employment
19.124 million jobs
Non-recurring employment
1,38,905 lakh mandays 
Rural Roads & Rural Bridges
60,260 lakh mandays 
78,389 lakh mandays

Benefits of RIDF Projects:
NABARD's support for creation of Rural Infrastructure through RIDF has resulted in considerable benefits such as:

  • Commitment of funds under RIDF sanctioned projects has enabled State Governments to take up the implementation more expeditiously
  • Financing of incomplete projects has resulted in unlocking of sunken investments already made by the State Governments, thus, realizing the full benefits of the projects
  • Creation of additional irrigation potential, generation of non-recurring employment and creation of jobs has contributed to the economic prosperity in the rural areas
  • Monitoring of the projects has resulted in timely implementation of majority of the projects and has reduced the time and cost overrun
  • Completion of projects through RIDF assistance from NABARD has helped in growth of core sectors in rural areas by spurring the demand for credit from Banks.

4.  On-going projects and schemes:

State-wise, Tranche-wise details of closed/on-going projects/ schemes and broad sector-wise details are given in Annexure I and II.

Contact Information:
Shri Asit Kumar Mohanty
Chief General Manager
8th Floor, 'D' Wing
C-24, 'G' Block
Bandra-Kurla Complex
Bandra (East), Mumbai 400 051
Tel: (91) 022-26530068, (91) 022-26539238
Fax: (91) 022-26530101