NABARD and NaBFID have signed a Memorandum of Understanding (MoU) to strengthen cooperation in financing infrastructure projects that have a strong rural impact. The partnership will focus on long-term finance, knowledge sharing and innovative funding solutions for rural infrastructure and value chains.
MoU Highlights
- The MoU creates a framework for:
- Joint financing.
- Knowledge sharing.
- Developing innovative financing solutions.
- It aims to improve access to long-term and competitively priced finance.
- Coverage includes:
- Public-Private Partnership (PPP) projects.
- Agri-value chains.
- Infrastructure having strong rural linkages.
- Major focus areas: Terminal markets, Water and sanitation,Warehousing, Irrigation, Post-harvest storage and cold chains, Compressed biogas, Rural roads and bridges.
- The partnership is expected to support commercially viable projects, improve rural connectivity and market access, and contribute to higher rural incomes.
NABARD- National Bank for Agriculture and Rural Development
- It is India’s premier institution for policy, planning and credit operations related to agriculture and rural development.
- Established: 1982.
- Created by transferring:
- Agricultural credit functions of the RBI.
- Refinance functions of the Agricultural Refinance and Development Corporation (ARDC).
- Established under an Act of Parliament.
- Supports both farm and non-farm sectors.
- Over more than four decades, it has contributed to rural development through:
- Agri-finance.
- Infrastructure development.
- Banking technology.
- Microfinance.
- Rural entrepreneurship.
- Headquarters: Mumbai.
- Presence includes 31 offices, 355 district offices and 29 cluster offices across India.
NaBFID- National Bank for Financing Infrastructure and Development
- A specialised Development Finance Institution (DFI) supporting India’s infrastructure sector.
- Established: 2021.
- Established under the National Bank for Financing Infrastructure and Development Act, 2021.
Key Objectives
- Address gaps in long-term non-recourse financing for infrastructure.
- Strengthen India’s bond and derivatives markets.
- Support sustainable growth of the Indian economy.
NaBFID also promotes innovative financing instruments, deeper bond and derivatives markets, best practices in infrastructure financing and data-driven risk management.