In the year 2010, as part of a repositioning exercise, NABARD initiated steps for evolving new business avenues in the wake of changing economic environment. Consequently, a new department named, Business Initiatives Department (BID) was formed to extend direct credit support to new business initiatives with focus on infrastructure development and economic upliftment of rural India. The department has now been renamed as ‘PROJECT FINANCE DEPARTMENT’ w.e.f. 07 April 2025.

Business products of the Department

NABARD Infrastructure Development Assistance (NIDA)

NIDA offers flexible long-term loans to well managed Public and Private sector entities for financing rural infrastructure. Projects for agriculture infrastructure, rural connectivity, renewable energy, power transmission, rural tourism, drinking water and sanitation and other social and commercial infrastructure are financed under NIDA.

The following institutions are eligible for funding under NIDA: -

• a) State Governments
• b) Central/ State Govt. Companies, Corporations, Institutions
  
• c) Co-operatives/ Federations
• d) Local Bodies
• e) Private Companies
• f) Any other Agency/ Institution or class of institutions made eligible under the Scheme guidelines.

Achievements:

As on 31 May 2025, cumulative sanction and disbursement (since 2010) under NIDA stood at Rs 1,09,973.07 crore and Rs 55,810.14 crore respectively.

Progress during last five financial years and current financial year:

Impact

So far 169 projects sanctioned under NIDA have created/proposed to create the following visible impacts:

Credit Facility for Federations (CFF)

CFF was launched with the objective of providing short-term credit facility 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.

CFF is extended to these entities towards procurement of agricultural and allied commodities, procurement of milk, supply of agricultural inputs, supply chain management, value addition etc.

Eligible institutions for funding under CFF

• State/Central Government Agricultural Marketing Federations and Corporations
• Dairy Co-operatives/Federations
• Agricultural Marketing Co-operatives/Federations
• Registered Companies

Achievements

As on 31 May 2025, cumulative sanction and disbursement under CFF stood at Rs 3,12,521.87 crore and Rs 3,75,240.59 crore respectively.

Progress during last five financial years and current financial year

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

Consequent to the Union Budget 2017-18 announcement, Dairy Processing & Infrastructure Development Fund (DIDF) was set up with a corpus of Rs 8,004 crore with National Bank for Agriculture and Rural Development (NABARD) for a period of 5 years i.e. 2018-19 to 2022-23 in NABARD. The primary objective of the scheme was to modernize the milk processing plants and machinery and to create additional infrastructure for processing more milk and increase value addition especially in the cooperative sector.

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.

A special fund namely, the Animal Husbandry Infrastructure Development Fund (AHIDF), with targeted lending of Rs.15,000 crore from 2020-21 to 2022-23 by banks was launched by D/o Animal Husbandry and Dairying (DAHD). Further, Union Cabinet approved the continuation of Animal Husbandry Infrastructure Development Fund (AHIDF), to be implemented under Infrastructure Development Fund (IDF) with an outlay of Rs 29,110.25 crore for another three years up to 2025-26. The scheme with the facility of 3% interest subvention for all eligible entities aims at incentivising investments by individual entrepreneurs, private companies, MSME, FPOs, Section 8 companies and dairy cooperatives to establish (i) dairy processing and value addition infrastructure, (ii) meat processing and value addition infrastructure (iii) Animal Feed Plant (iv) Breed improvement technology and multiplication farm (v) Setting up of Veterinary Vaccine and Drugs Manufacturing facilities and (vi) Animal Waste to Wealth Management (Agri Waste Management). Operational guidelines for the scheme issued by DAHD have been shared with all banks, NABARD, NDDB & NCDC.

Under the extended AHIDF scheme, NABARD has been included as one of the loaning entities and accordingly, NABARD has institutionalized the scheme for lending to Dairy Cooperatives including Milk Producer Companies. Through Regional offices, NABARD is popularizing the AHIDF scheme.

Achievements:

During the operational period of DIDF scheme, 32 projects were sanctioned with cumulative loan amount of Rs 3,015.60 crore and cumulative disbursement stood at Rs 2310.01 crore (as on 31 May 2025)

The year-wise progress of the DIDF scheme

Fisheries & Aquaculture Infrastructure Development Fund (FIDF)

To address the infrastructure requirements of the fisheries sector, Government of India (GoI) in Union Budget 2018-19, announced creation of Fisheries and Aquaculture Infrastructure Development Fund (FIDF) with a total corpus of Rs 7,522.48 crore for a period of 5 years i.e. 2018-19 to 2022-23.

The scheme has now been extended 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.

Interest Subvention and Lending Rate of Interest

Under FIDF, Government provides interest subvention up to 3% per annum for providing concessional finance by the Nodal Loaning Entities (NLEs) to the State/ UT Government, cooperatives and private entrepreneurs at the interest rate not lower than 5% per annum with maximum repayment period of 12 years inclusive of moratorium of 2 (two) years on repayment of principal.

Nodal Loaning Entities (NLEs)

1. National Bank for Agriculture and Rural Development (NABARD)

2. National Cooperatives Development Corporation (NCDC)

3. All Scheduled Banks

Nodal Implementing Agency (NIA)

National Fisheries Development Board (NFDB) is the NIA under the scheme. Eligible entities may submit their proposals online at Click Here

Fisheries and Aquaculture Infrastructure Development Fund – Credit Guarantee Scheme (FIDF – CGS)

Government has also approved for providing the Credit Guarantee Facility to the projects of entrepreneurs, individual farmers and cooperatives from the existing Credit Guarantee Fund of Infrastructure Development Fund of Department of Animal Husbandry and Dairying. This Credit Guarantee Scheme for FIDF is managed by M/s NABSanrakshan Trustee Private Limited and provides a credit guarantee cover of 25% of the credit facility, with a maximum limit of Rs. 12.50 crore.

For more details, please visit - FIDF | Department of Fisheries, GoI

Achievements:

As on 31st May 2025, NABARD cumulatively has sanctioned Term loans worth Rs 3,268.18 crore for 86 projects to 8 State Governments (Tamil Nadu - 64, Maharashtra - 5, Gujarat - 4, West Bengal - 7, Andhra Pradesh - 3, Goa - 1, Himachal Pradesh - 1, and Kerala - 1).

So far, cumulatively Rs.1323.13 crore has been disbursed to 6 States viz., Tamil Nadu, Gujarat, West Bengal, Goa, Himachal Pradesh, and Kerala.

Progress during the last six financial years is as follows: -

(Rs. in crore)

Rural Infrastructure Assistance to State Governments (RIAS)

NABARD has introduced Rural Infrastructure Assistance to State Governments (RIAS) to finance long-term infrastructure creation by State Governments, especially in Eastern & Northeastern States and Aspirational & Border districts. RIAS provides much needed flexibility to State Governments in terms of repayment frequency, moratorium and loan tenor. Further, financial assistance under RIAS can also be availed under programme mode, allowing states to integrate multiple projects under one single programme for greater socio-economic impact.

In FY2024-25, NABARD sanctioned term loans to State Governments of Chhattisgarh, Kerala and Rajasthan for projects/ programmes encompassing varied sectors like irrigation, affordable housing, agriculture and climate sustainability.

As on 31st May 2025, cumulative sanction and disbursement under RIAS stood at Rs 4252.47 crore and Rs 65.16 crore respectively.

Progress during last two financial years and current financial year is given below:

(Rs. in crore)

Contact Information:

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

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