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 Governments and State-Owned Corporations. Over the years, RIDF has become an important source
of public capital formation in the rural infrastructure space.
I. Rural Infrastructure Development Fund (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 infrastructure projects in States, which are
incomplete due to lack of financial resources. Due to inadequacy of critical infrastructure, banks were unable
to channelize their lending to agriculture as per priority sector guidelines.
The Government of India, therefore, announced setting up of Rural Infrastructure Development Fund (RIDF) in the
budget of 1995-96, to be operationalised by NABARD towards financing of, at that time, the ongoing rural
infrastructure projects in the irrigation sector. Subsequently, RIDF was made available for new rural
infrastructure projects and its ambit was broad based 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.
a. 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
- Inverse of Composite Infrastructure Development Index
- Share in National Rural Population and Rural poverty rate
- Inverse of Credit/Deposit Ratio and inverse of per capita PS credit
- Performance under RIDF (Average disbursements and utilisation of drawables)
- Average sanctions for Agriculture (including Irrigation) and Drinking Water projects
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 39 activities broadly classified
under three heads, i.e. Agriculture & Related Sector, Social Sector, and Rural Connectivity.
Eligible projects are prioritised and submitted by the State Governments through their Finance Departments/Nodal
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 Sanctioning Committee of the Board 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 operationalised
from September 1, 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. Cumulative sanctions as on 31
October2024 stood at Rs. 5,72,216 crore and disbursements against the projects stood at Rs. 4,51,999 crore.
b. 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.35000.00 crores under RIDF XXX (2024-25).
Cumulative Sanctions & Disbursements as on 30 November 2024
Particulars |
No. of Projects Sanctioned |
RIDF Amount Sanctioned |
RIDF Loan Disbursed |
Utilisation |
RIDF
|
783013 |
553716.28
|
433498.94
|
78% |
Bharat
Nirman |
- |
18500.00
|
18500.00
|
100% |
Total |
783013
|
572216.28
|
451998.94
|
79% |
From RIDF I to XXX, NABARD has sanctioned total 7,83,013 projects involving loan assistance of Rs.5,53,716 crore to
State Governments as on 30 November 2024 (including for warehousing projects).
Of this, an amount of Rs.4,33,499 crore (78%) has already been disbursed. In addition, Rs 18,500 crore was sanctioned
and disbursed for rural roads under Bharat Nirman. This translates to total sanctions of Rs. 5,72,216 crore and
total disbursements of Rs 4,51,999 crore.
c. Sector-wise Share of Cumulative Sanctions
Sector-wise cumulative RIDF loans sanctioned as on 30 November 2024, accounted for:
- Agriculture, irrigation and allied sectors (43%)
- Social sector (21%)
- Rural roads and bridges (36%)
The estimated cumulative economic and social benefits under RIDF as on 30 November 2024 were as under:
Rural Infrastructure |
Additional benefits created |
Irrigation Potential |
453 lakh ha |
Rural Bridges |
14 lakh m |
Rural Roads |
5.7 lakh km |
|
|
Non Recurring Employment (lakh mandays) |
Irrigation |
1,49,119 |
Rural Roads & Rural Bridges |
70,735 |
Others |
92,510 |
d. 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 incomplete projects has resulted in unlocking of investments already made by the State
Governments,
thus, realising 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.
e. 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.
(ii) Long Term Irrigation Fund (LTIF)
- LTIF was operationalized in NABARD during 2016-17 for fast tracking the completion of the 99 identified
Medium
and Major Irrigation projects, spread across 18 states, in mission mode. Subsequently, 04 other
projects, viz.,
Polavaram project in Andhra Pradesh, North Koel project in Bihar and Jharkhand, Relining of Sirhind
&
Rajasthan Feeders in Punjab and Shahpur kandi Dam in Punjab were included under the ambit of LTIF.
- During 2016-2021, NABARD has provided loan towards Central share to National Water Development Agency
(NWDA),
SPV of Govt. of India, as well as State share to willing State Governments with a tenor of 15 years. So
far 13
states have executed the MoA to avail funding assistance from NABARD.
- From 2021-22 onwards, the funding arrangement is being continued towards meeting State share only for the 60
ongoing AIBP projects and 85 ongoing CADWM major/medium irrigation projects (out of the 99 irrigation
projects)
with GoI interest subvention up to 2% only. Funding requirements for central share will be met through
budgetary
resources of GoI.
- During 2024-25, no loan amount has been sanctioned and loan amount of Rs 291.97 crore has been released under LTIF
for State share. The cumulative loan sanctioned and released as on 30 November 2024 is Rs 85,790.78 crore (Central
Share- Rs 46,495.93 crore & State Share- Rs 39,294.85 crore) and Rs 61,602.89 crore (Central Share -Rs 26,500.60 crore &
State Share - Rs 35,102.29 crore), respectively.
- Out of the 99 projects, Accelerated Area Benefited Programme (AIBP) component of 58 projects and Command Area
Development & Water Management (CAD&WM) component of 16 project have been completed. The funding
assistance
extended during 2016-23 in respect of 99 irrigation projects has facilitated creation of irrigation potential of
25.20 lakh ha against the targeted irrigation potential of 34.63 lakh ha. Further, 21.15 lakh hectare Culturable
Cultivated Area has been developed under Command Area Development &Water Management programme. (Source-MoJS,
GoI)
Table: The details of State-wise sanction and release of funds under LTIF as on 30 November 2024 are given as under:
Rs. in crore
Sr. No. |
State |
Loan sanctioned |
Loan released |
Central share |
State share |
Central share |
State share |
1 |
Andhra Pradesh |
425.07 |
513.87 |
91.81 |
489.34 |
2 |
Assam |
195.04 |
116.01 |
7.55 |
116.01 |
3 |
Bihar |
240.01 |
0.00 |
146.07 |
0.00 |
4 |
Chhattisgarh |
165.73 |
80.07 |
62.79 |
0.00 |
5 |
Goa |
17.6 |
209.95 |
3.84 |
209.941 |
6 |
Gujarat |
8158.5 |
3611.03 |
5635.45 |
3611.03 |
7 |
Jammu & Kashmir |
57.34 |
0.00 |
46.26 |
0.00 |
8 |
Jharkhand |
1847.00 |
1020.44 |
756.73 |
768.1 |
9 |
Karnataka |
1837.336 |
0.00 |
1183.32 |
0.00 |
10 |
Kerala |
48.71 |
0.00 |
2.69 |
0.00 |
11 |
Madhya Pradesh |
3537.52 |
2863.18 |
811.1 |
1705.02 |
12 |
Maharashtra |
4627.50 |
18021.31 |
1796.79 |
16121.77 |
13 |
Manipur |
309.86 |
390.37 |
228.35 |
370.02 |
14 |
Odisha |
1751.81 |
5614.22 |
1340.82 |
4811.8189 |
15 |
Punjab |
143.71 |
0.00 |
70.5 |
0.00 |
16 |
Rajasthan |
1084.668 |
423.06 |
509.94 |
423.06 |
17 |
Telangana |
3478.826 |
0.00 |
673.86 |
0.00 |
18 |
Uttar Pradesh |
4661.86 |
6431.34 |
1553.91 |
6431.18 |
|
Sub-Total |
32588.09 |
39294.85 |
14921.78 |
35102.29 |
19 |
Polavaram |
11217.71 |
- |
10650.15 |
- |
20 |
North Koel Reservoir |
1378.61 |
- |
721.22 |
- |
21 |
Shahpurkandi Dam |
485.35 |
- |
207.45 |
- |
22 |
Relining of Sirhind Feeder and Rajasthan Feeder |
826.17 |
- |
0.00 |
- |
|
Gross-total |
46495.93 |
39294.85 |
26500.60 |
35102.29 |
III. Micro Irrigation Fund (MIF)
- MIF with an initial corpus of Rs 5000 crore was operationalized in NABARD in 2019-20 to facilitate State Govts.
efforts in mobilizing additional resources for expanding coverage under micro irrigation and incentivizing its
adoption beyond provisions of Pradhan Mantri Krishi Sinchayee Yojana-Per Drop More Crop. The MIF funding
arrangement for the initial corpus was in operation upto 31 July 2024, with the existing terms and conditions.
As announced in Union Budget 2021-22, augmentation of MIF corpus by another Rs 5000 crore and its implementation
upto FY 2025-26 is under consideration of GoI.
- The MoA & FW, GoI has conveyed that, the continuation and augmentation of the MIF by another Rs.5000 Crore
for
15th Finance Commission period has been approved by Union Cabinet in its meeting dt. 03.10.2024. Further, the
interest subvention by GoI is now 2% instead of earlier 3%.
- During 2024-25, no loan amount has been sanctioned and loan amount of Rs 251.68 has been released. Cumulative loan
sanctioned stood at Rs 4719.10 crore, against which Rs 3639.49 crore has been released as on 30 November 2024.
Table: The details of State-wise sanction and release of funds under MIF as on 30 November 2024 are given as
under:
Rs. in crore
Sr. No |
Name of the State |
Loan Sanctioned |
Loan Released |
1 |
Andhra Pradesh |
616.13 |
616.13 |
2 |
Gujarat |
764.13 |
641.29 |
3 |
Tamil Nadu |
1357.93 |
1357.93 |
4 |
Haryana |
785.30 |
365.89 |
5 |
Punjab |
149.65 |
32.13 |
6 |
Uttarakhand |
14.84 |
0.58 |
7 |
Rajasthan |
740.79 |
465.67 |
8 |
Karnataka |
290.33 |
159.87 |
|
Total |
4719.10 |
3639.49 |
The sanctions made by NABARD till date under MIF envisages expansion of micro irrigation coverage by an area of 20.51
lakh ha. Out of this, an area of 16.63 lakh ha has been covered by the States as on 31 March 2024 (Source-MoA&FW,
GoI).
(iv) Pradhan Mantri Aawas Yojana - Grameen (PMAY-G)
- Government of India launched PMAY–G with effect from 1 April 2016 in order to provide a pucca house with basic
amenities like electricity, cleaned safe water, sanitation, LPG under “Housing for all by 2022”, programme for
the poor homeless and /or living in dilapidated dwellings in rural areas. Under PMAY-G, NABARD has extended loan
from 2017-18 to 2020-21 to National Rural Infrastructure Development Agency (NRIDA), SPV of GoI towards part
funding of Central share. The cumulative sanction and disbursement under PMAY-G stood at Rs 61,975 crore and Rs 48,819.03 crore respectively. Loan assistance released by NABARD under PMAY-G has facilitated construction of
1.77 crore houses as on 31 March 2022. (Source: MoRD, GoI website).
(v) Swachh Bharat Mission-Gramin (SBM-G)
- In order to accelerate the efforts to achieve universal sanitation coverage and eliminate open defection in
rural areas, NABARD has extended loans during 2018-19 and 2019-20 to National Centre for Drinking Water,
Sanitation & Quality (NCDWS&Q), a SPV of GoI, towards part funding of Central share under the Scheme. The
cumulative sanction and disbursement as on 31 March 2020 under the scheme stand at Rs 15,000.00 crore and Rs 12,298.20 crore, respectively.
VIDEOS:
Contact Information
Dr K Inkarsal
Chief General Manager
8th Floor, 'D' Wing
C-24, 'G' Block
Bandra-Kurla Complex
Bandra (East), Mumbai 400 051
Tel: (91) 022- 68120051 (91) 022-26539238
Information under RTI – Section 4(1)(b)