NABARD, NaBFID Sign Pact for Rural Infrastructure and Agri-Value Chain Funding

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) for cooperation on rural infrastructure financing, as per The Economic Times news report. 

The agreement was signed by NABARD Chairman Shaji Krishnan V and NaBFID Managing Director Rajkiran Rai G. It sets out a framework for joint financing, knowledge sharing and the development of financing solutions. 

List of Sectors 

The MoU covers projects in water and sanitation, irrigation, rural roads and bridges, warehousing, terminal markets, post-harvest storage and cold-chain facilities. 

Compressed biogas is also included. The agreement extends to agricultural value chains, infrastructure with rural linkages and Public Private Partnership (PPP) projects. 

Funding for Longer-Duration Projects 

The two institutions said they will work on expanding access to long-term, competitively priced finance for projects covered under the agreement. 

The focus is on infrastructure and value-chain projects that can be commercially financed. Projects linked to connectivity and market access in rural areas are also part of the arrangement. 

Food Processing and Storage 

NaBFID Managing Director Rajkiran Rai G said the partnership could support the development of bankable projects in food processing, storage and cold-chain connectivity. 

According to Rai, work in these areas could help improve agricultural value chains and contribute to farmer incomes and the rural economy. 

Comments From NABARD 

NABARD Chairman Shaji Krishnan V said the collaboration could help narrow the gap between rural and urban areas and support rural development. 

The joint statement also said the agreement would bring together the capabilities of the two institutions for projects connected with sustainable rural development and the Viksit Bharat vision. 

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Conclusion 

The MoU gives NABARD and NaBFID a framework to work together on financing rural infrastructure. The areas covered include irrigation, sanitation, roads, storage and cold chains, as well as projects linked to agricultural value chains and PPPs. 

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