Transforming Agriculture: NABARD’s Investment in Agri-Infrastructure

National Bank for Agriculture And Rural Development (NABARD), as a Development Bank, has been playing a very crucial role in setting up Agri infrastructure in India since its inception. NABARD with the support of Govt. of India, has initiated several programmes over the years to enhance Agri- infrastructure facilities in the country. Some of the major initiatives in this regard are as under:

1. Rural Infrastructure Development Fund (RIDF)

Against the backdrop of declining public investment in agriculture and rural infrastructure, RIDF was instituted in NABARD with an initial corpus of ₹2,000 crore with the main objective of providing loans to State Governments for completing ongoing rural infrastructure projects. RIDF corpus has now grown to ₹40,474.55 crore in 2024.  With the assistance of RIDF, it is estimated to create/restore irrigation potential of 422 lakh ha.

2. Long-Term Irrigation Fund (LTIF)

Long-Term Irrigation Fund (LTIF) was announced for fast-tracking 99 identified medium and major irrigation projects, spread across 18 states in mission mode.  So far 13 states have executed the MoA to avail funding assistance from NABARD. Further, the Govt. of India has approved the continuation of financial assistance under LTIF up to 31 March 2026 to willing State Governments for ongoing projects. The cumulative loan sanctioned during 2024 is ₹85,790.78 crore.

3. Micro Irrigation Fund (MIF)

Micro Irrigation Fund with an initial corpus of ₹5000 crore was operationalized in NABARD in 2019-20 to facilitate efforts of State Governments 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 is in operation up to 31 July 2024. The sanctions made by NABARD to date under MIF envisage the expansion of micro irrigation coverage by an area of 19.10 lakh ha.

4. Fisheries and Aquaculture Infrastructure Development Fund

The Government of India created the Fisheries and Aquaculture Infrastructure Development Fund (FIDF) with a total corpus of ₹7,522.48 crore. NABARD provides funds to the State Governments for various facilities like fishing harbours, fish landing centres, modernized State fish seed farms, modern fish markets, disease diagnostic laboratories, aquatic quarantine facilities, etc. During the FY2023-24, total disbursements stood at ₹289.21 Crore.

5. Dairy Processing and Infrastructure Development Fund

The Government of India created a Dairy Processing and Infrastructure Development Fund (DIDF) in NABARD, with a total corpus of ₹8,004 crores. The objectives of the scheme are modernisation and infrastructure augmentation for milk processing and value addition, and to ensure optimum price realisation by the primary producer. Cumulatively 32 proposals amounting to ₹3015.60 have been sanctioned under the scheme. Sanctioned projects have created a liquid milk processing capacity of 7.39 million litres per day, 265 Metric tonnes per day milk powder processing capacity and 3.4 Lakh litres per day Bulk Milk Coolers capacity.

6. NABARD Infrastructure Development Assistance (NIDA)

NIDA was designed as an alternative line of credit to address the gap between public investment in agriculture and rural infrastructure. In FY 2023-24, total sanctions under NIDA stood at ₹9,934.40 crore, for 15 credit proposals. The disbursement under NIDA for the FY 2023-24 was ₹7,303.96 crore.

7. New Agriculture Marketing Infrastructure sub-scheme of Integrated Scheme for Agricultural Marketing (ISAM)

NABARD is a subsidy channelizing agency for the New Agriculture Marketing Infrastructure sub scheme of Integrated Scheme for Agricultural Marketing (ISAM). The scheme is being implemented by the Ministry of Agriculture and Farmers’ Welfare (MoA&FW). The scheme lays special focus on promoting innovation and the latest technologies in post-harvest and agricultural marketing infrastructure. A scientific storage capacity of 812.36 lakh MT involving 49758 units has been created under the scheme since its inception including old schemes. 

In all, NABARD is playing a major role in setting up the agri-infrastructure by providing necessary funds for these schemes through various funds in collaboration with the Government of India.

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