New Delhi: The National Bank for Agriculture and Rural Development (NABARD) and the National Bank for Financing Infrastructure and Development (NaBFID) have signed a Memorandum of Understanding (MoU) to strengthen financing support for infrastructure projects with significant rural linkages.
The partnership aims to combine NABARD’s expertise in rural and agricultural infrastructure with NaBFID’s capabilities in infrastructure financing. The collaboration is expected to expand access to long-term and competitively priced finance for rural infrastructure and agricultural value-chain projects.
NABARD and NaBFID to Explore Joint Financing
Under the MoU, both institutions will collaborate on joint financing, knowledge sharing and innovative financing solutions for infrastructure projects.
The partnership will cover various stages of the project lifecycle, including:
- Project identification
- Project appraisal and due diligence
- Credit structuring and pricing
- Joint project monitoring
- Project structuring
- Financial modelling
- Debt syndication
- Infrastructure advisory services
The two institutions will explore suitable funding arrangements to support commercially viable projects with strong rural linkages.
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Key Areas Covered Under the Partnership
The collaboration will focus on infrastructure projects that can strengthen rural connectivity, agricultural value chains and essential services.
Key areas identified under the MoU include:
- Water and sanitation
- Irrigation
- Post-harvest storage
- Cold-chain facilities
- Terminal markets
- Rural roads and bridges
- Warehousing
- Compressed biogas (CBG)
- Agri-value chains
- Public Private Partnership (PPP) projects
The partnership is expected to improve infrastructure capacity and market access while supporting the development of stronger rural and agricultural ecosystems.
Joint Capacity Building to Strengthen Infrastructure Financing
NABARD and NaBFID will also undertake joint capacity-building initiatives through their respective training institutions.
The initiatives will facilitate knowledge exchange and help strengthen institutional capabilities in infrastructure financing.
The collaboration is also expected to promote greater understanding of project structuring, financing models and other aspects of developing bankable infrastructure projects.
NABARD Chairman Highlights Rural Development Focus
Shaji Krishnan V., Chairman, NABARD, said the collaboration could help develop financially sustainable and market-based structures for rural infrastructure and value-chain financing.
He highlighted the potential of the partnership to contribute towards narrowing the rural-urban divide by improving financing access for infrastructure projects in rural areas.
NaBFID Sees Potential to Strengthen Farmer Incomes
Rajkiran Rai G., Managing Director, NaBFID, said the partnership could support the development of commercially viable and bankable projects in areas such as food processing, storage and cold-chain connectivity.
Such infrastructure, he noted, has the potential to strengthen farmer incomes and the rural economy by improving value-chain efficiency and market connectivity.
Partnership to Support Long-Term Rural Infrastructure Finance
The collaboration between NABARD and NaBFID is expected to improve the availability of long-term finance for commercially viable rural infrastructure projects.
The partnership could also help:
- Strengthen rural connectivity.
- Improve market access for agricultural products.
- Support modern storage and cold-chain infrastructure.
- Promote sustainable rural development.
- Develop financially viable infrastructure projects.
- Encourage greater private-sector participation through PPP models.
The initiative aligns with the broader objective of developing resilient infrastructure under the Viksit Bharat vision.
About NABARD
The National Bank for Agriculture and Rural Development (NABARD) is a key development financial institution focused on agriculture, rural development and rural infrastructure in India. It supports rural credit, infrastructure development, institutional strengthening and initiatives aimed at improving livelihoods and strengthening the rural economy.
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