Nabard’s funding for rural infra has crossed Rs. 1 lakh crore

By | September 29, 2011

According to a recent press report the loans offered to state governments by the National Bank for Agriculture and Rural Development (NABARD) has crossed the Rs 1,00,000-crore mark and currently stands at Rs 1,02,844 crore as on September 30, 2011. The lending includes loans offered to 28 states and the Union Territory of Pondicherry in order to help the rural roads component of Bharat Nirman.

Reports said that maximum funds were utilised for irrigation and agriculture (40%), followed by rural roads (33%), rural bridges (12%), rural drinking water supply (9%) and social sector (6%).

Reports also said that the Rural Infrastructure Development Fund (RIDF) was set up with the Nabard by the Union government in 1995-96 with an initial amount of Rs 2,000 crore. The funds were supplied by the RBI from scheduled commercial banks in proportion to the extent of their shortfall in agriculture lending.

Reports added saying that Rs 2,000 crore has been allocated specifically for creation of warehousing infrastructure in different states.

This has opened a new channel of funding from the bank to support streamlining of presently available at 6.5% interest per annum to storage of food grains at the production, distribution and consumption levels, not only for state governments, but also for government owned/supported entities and private sector entities, which supplement storage requirements for agricultural and allied sector.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit for the latest rates/offers.
Category: Articles Glossary Tags: ,

About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

Leave a Reply

Your email address will not be published. Required fields are marked *