3.2 Investing in Rural Infrastructure for Economic and Social Transformation

In rural areas, social infrastructure is key to reducing poverty, addressing inequalities between urban & rural regions . NABARD, through its multifaceted initiatives, is committed to fostering sustainable agriculture, rural development, and broader economic progress by investing in infrastructure that improves the quality of life in rural communities.

RIDF has been instrumental in financing projects related to rural roads, water supply, sanitation, irrigation, and healthcare facilities, thereby enhancing access to essential services and improving the quality of life in rural areas. Through NIDA, NABARD provides funding for large-scale infrastructure projects that promotes rural development, such as agri-processing units and renewable energy solutions, creating new livelihood opportunities and driving economic growth.

NABARD has provided loans to the Government of India to facilitate the development of vital social infrastructure through initiatives such as the Pradhan Mantri Awaas Yojana–Gramin and Swachh Bharat Mission–Grameen, with the goal of improving housing and sanitation facilities in rural areas.

3.2.1 Education

In India, the opportunity presented by the demographic dividend is considerable, making it essential to guarantee that every child has access to quality education. This is crucial for leveraging the potential of future generations, fostering inclusive development, and creating a more resilient and prosperous society. NABARD plays a pivotal role by offering financial support for the enhancement of educational infrastructure in rural regions through initiatives such as NIDA and RIDF, which encompass the construction and renovation of schools, hostels, and vocational training centres.

Support to educational institutions under NIDA as on 31 March 2024

Support to educational institutions under RIDF as on 31 March 2024

3.2.2 Health

A high population density coupled with large rural and underserved population makes investment in health infrastructure crucial to ensure that even the most marginalised communities can receive timely and quality medical care. NABARD has been providing finance through RIDF and NIDA to strengthen healthcare infrastructure in rural areas, benefiting a large segment of the population.

Support to public healthcare infrastructure under NIDA as on 31 March 2024

Number of healthcare centres (sub centres/Primary health centres/CHC/district hospitals) supported

FY 2023-24

Establishment of mother and child care units in

04 sub divisional hospitals; upgradation of

153 CHCs, 19 DHs, 6 SDHs

Cumulative

84 district hospitals

4 sub-divisional hospitals

153 community healthcare centres

Villages benefited

14,589

Cumulative

Population benefited (million)

3.26

Cumulative

Support to public healthcare infrastructure under NIDA as on 31st March 2024

No. of healthcare centres (sub centres/ primary health centres/ CHC/ district hospitals) supported

171

FY 2023-24

17,690

Cumulative

Population benefited (no.)

16.61 million

FY 2023-24

Villages benefited (no.)

3,481

FY 2023-24

3.2.3 Sanitation and Drinking Water

Poor sanitation facilities and unsafe drinking water expose communities to health risks, leading to high rates of morbidity and mortality, especially among children. Ensuring clean water and proper sanitation can prevent diseases like cholera, diarrhoea, typhoid, dysentery, etc. and improve overall public health. NABARD has been actively contributing to sanitation and safe drinking water initiatives in rural India by providing financial assistance, supporting infrastructure development, and promoting awareness programmes. Through RIDF, NABARD has helped finance projects for household and community sanitation, construction of toilets, and safe drinking water supply systems in villages. Under RIDF, NABARD contributed to the state share of flagship GOI schemes under Jal Jeevan Mission. Under NIDA initiative, NABARD has been extending long-term, flexible financing towards the development of pipelines, water treatment plants, construction of household and community toilets, wastewater management systems, rural drinking water supply networks and decentralised drinking water solutions, directly enhancing health and well-being of rural population.

Beneficiaries of Safe drinking water projects under RIDF

No. of rural drinking water supply scheme

205

FY 2023-24

20,706

Cumulative

No. of villages benefited (estimated) in FY 2023-24

14,361

Population served in FY 2023-24

20.57 million

Safe drinking projects financed under NIDA

Safe drinking water projects

9.79 million

Population served

31,722 habitations

Number of village benefited

3.2.4 Rural Housing

Through its collaboration with government schemes like the Pradhan Mantri Awaas Yojana–Gramin (PMAY-G) NABARD helps extend credit to rural households, enabling them to construct or upgrade their homes with essential amenities such as electricity, safe drinking water, sanitation, and cooking gas to impoverished and homeless individuals, as well as those residing in dilapidated dwellings in rural areas. Under the PMAY–G, NABARD extended loans from fiscal years 2018 to 2021 to the National Rural Infrastructure Development Agency (NRIDA), a Special Purpose Vehicle under the Government of India, to partially finance the central share.

By channelling funds through initiatives such as the RIDF, NABARD supports the creation of essential housing infrastructure, improving the living standards of rural communities. As on 31 March 2024, ₹488.10 billion are outstanding under PMAY-G bonds.