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.

Business products of BID

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:

As on 30 June 2024, cumulative sanction and disbursement (since 2010) under NIDA stood at Rs.82336.77 crore and Rs.43929.30 crore respectively.

Progress during last five financial years and current financial year

Impact

So far 156 projects sanctioned under NIDA has created/to be created the following visible impacts

Direct Refinance Assistance (DRA) to Co-operative Banks

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

In response, NABARD has designed a short-term multipurpose credit product for financing directly to DCCBs and StCBs to argument their lending resources.

The credit limits can be used by the borrowing institutions to sanction loans to individuals (such as farmers, traders, artisans, etc.) through their branches and through PACS for various purposes such as:

• Crop loans above Rs.3 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

Achievements

As on 30 June 2024, cumulative sanction and disbursement under DRA to Co-operative Banks stood at Rs.1,33337.30 crore and Rs.1,14,203.83 crore respectively.

Progress during last five financial years and current financial year

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.

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.

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 30 June 2024, cumulative sanction and disbursement under CFF stood at Rs.2,56,971.87 crore and Rs.2,94,300.85 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.

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.

The objective of the fund establishment was to provide subsidized loan @6.5% to stressed milk cooperatives for primarily replacing their decades old chilling and processing plants and addition of value-added product plants.

Objectives of the DIDF scheme

• To modernize the milk processing plants and machinery and to create additional infrastructure for processing more milk.

Implementing Agency and End Borrowers

• Implemented by National Dairy Development Board (NDDB) and National Cooperative Development Corporation (NCDC)
• End Borrowers: Milk Unions, State Dairy Federations, Multi-state Milk Cooperatives, Milk Producer Companies and NDDB subsidiaries.

Scheme Outlay

• Rs.11,184 Crore, Total project outlay- Rs.10,005 Crore (Loan: Rs. 8,004 Crore, End Borrowers’ contribution: Rs.2,001 Crore); NDDB & NCDC Contribution: Rs.12 Crore, Interest subvention (Government of India): Rs.1,167 Crore

Achievements:

During the operational period of the DIDF scheme, 32 projects were sanctioned with cumulative loan amount of Rs.3,015.60 crore and cumulative disbursement stood at Rs.2,260.93 (as on 30 June 2024)

The year-wise progress of the DIDF scheme

Fisheries & Aquaculture Infrastructure Development Fund (FIDF)

In the Union Budget 2018-19, Government of India (GoI) announced the 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.

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.

FIDF envisages creation of fisheries infrastructure facilities both in marine and inland fisheries sectors and augment the fish production to achieve the target of 15 million tonnes by 2020 set under the Blue Revolution.

Under the FIDF, NABARD provides fund to State Governments/Union Territories for 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.

Achievements:

As on 30 June 2024, NABARD cumulatively has sanctioned Term loan of Rs.3,248.27 crore under 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).

So far, cumulatively Rs.903.96 crore has disbursed to 6 States viz., Tamil Nadu, Gujarat, West Bengal, Goa, Himachal Pradesh, and Kerala.

Progress during last five financial years and current financial year

(Rs. in crore)

Rural Infrastructure Assistance to State Governments (RIAS)

NABARD has launched a new product Rural Infrastructure Assistance to State Governments (RIAS) for financing long-term infrastructure needs of State Governments with special focus on Eastern & Northeastern States and Aspirational & Border districts.

• RIAS provides a more holistic financing to State Governments for creation of rural infrastructure under both project and programme mode with a flexible tenor and moratorium.
• RIAS offers a judicious blend of both credit and credit+ interventions and value-added services in the form of PMU, technical assistance, capacity building and training, environmental and social impact assessments, etc.

Progress during last financial years and current financial

(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: bid@nabard.org

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