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Direct Credit |
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Direct credit from NABARD constitutes loans to State Governments. |
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Supporting Cooperatives |
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| In order to strengthen the owned funds position of cooperative credit institutions and thereby increasing their capacity to leverage larger resources, NABARD provides loans to State Governments to contribute to the share capital of these institutions. |
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Rural Infrastructure Development |
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With the objective of assisting State Governments in the completion of ongoing rural infrastructure projects and to take up new infrastructure projects, the Rural Infrastructure Development Fund (RIDF) was set up with NABARD in 1995-96 with contributions from Commercial banks by way of deposits. The shortfall in agri/priority sector lending was deposited by the commercial banks with NABARD as part of their contribution to the RIDF. The total corpus covering RIDF I (1995-96) to X (2004-05) is Rs. 42,000 crore. Sanctions under all trenches of RIDF as on 31 March 2005 were Rs.42948.51 crore against which the disbursements were Rs. 25384.02 cr. |
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Anticipated Benefits |
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It is anticipated that the projects sanctioned upto 31 March 2005 under RIDF would result in: |
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Creation of additional irrigation potential in 92.47 lakh ha. |
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Addition of 178000 km of rural road network & 331000 meter bridge length |
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Contribution to the GDP to the tune of Rs. 11058 crore |
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Generation of recurring employment of 48.01 lakh jobs and non-recurring employment of 13681 lakh man days due to increased irrigation |
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Generation of non-recurring employment expected from non-irrigation projects: 23238 lakh person days |
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Co-financing |
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To ensure substantial credit flow to agriculture and rural sector and to instill confidence in banks for financing hi-tech/export oriented agriculture projects involving large financial outlays/sunrise technologies, etc., NABARD has entered into agreements for co-financing with 12 Commercial Banks thereby sharing the credit risks with partner banks. |
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Under this arrangement, projects have been sanctioned in areas like floriculture, organic farming, milk processing, ethanol production, infrastructure development and forestry. |
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Bulk-lending/ Revolving Fund Assistance |
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NABARD provides bulk-lending facilities to NGOs. As on 31.3.2005, 30 agencies have been sanctioned assistance of Rs 27.07 crore against which Rs.15.18 crore has been disbursed. |
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