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 operationalized 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 and Drawals to Drawables
  • Percentage of BP to Drawables
  • Share of Irrigation, & Agri related 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 31 March 2020
                                                                                                                                                                   (Rs. in 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 6,76,930 projects involving loan assistance of Rs. 3,55,857 crore to State Governments as on 31 March 2020 (including for warehousing projects).
Of this, an amount of Rs. 2,75,984 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.3,74,357 crore and total disbursements of Rs.2,94,484 crore (78%)
Sector-wise Share of Cumulative Sanctions
Sector-wise cumulative RIDF loans sanctioned as on 31 March 2020 (Rs.3,55,857 crore), accounted for:
  • Agriculture, Irrigation and allied sectors (43%)
  • Social sector (18%)
  • Rural roads and bridges (39%)
The estimated cumulative economic and social benefits under RIDF as on 31 March 2020 were as under:
Rural Infrastructure Additional benefits created
Irrigation potential
340.96 lakh ha
Rural Bridges
11.78 lakh m.
Rural Roads
4.80 lakh km.
Recurring Employment
191.32 lakh jobs
Non-recurring employment
1,40,129 lakh mandays
Rural Roads & Rural Bridges
62,047 lakh mandays
80,088 lakh mandays
Benefits of RIDF Projects:
NABARD's support for creation of Rural Infrastructure through RIDF has resulted in considerable benefits such as expeditious implementation of infrastructure projects under RIDF.
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.
Studies by reputed national institutes like IIMs, IITs etc. on RIDF assisted projects have not only documented improved agricultural productivity and income levels of farmers but also revealed enhanced demand for credit in the project areas apart from diversification of lending portfolio, growth in deposits, improved branch network leading to greater financial inclusion.
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