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 jointly support the financing and development of rural infrastructure projects, agricultural value chains and infrastructure projects with rural linkages. The agreement was signed in Mumbai on August 26.
The partnership will focus on identifying and financing projects that can strengthen rural connectivity and improve infrastructure supporting agriculture and allied activities. Key areas covered under the collaboration include irrigation, water and sanitation, rural roads and bridges, warehousing, post-harvest storage, cold-chain infrastructure and terminal markets.
The two institutions will also explore financing opportunities in agricultural value chains, food processing, storage and compressed biogas projects, with an emphasis on commercially viable and bankable projects. The initiative is expected to help channel greater institutional finance towards infrastructure that can improve farm-to-market connectivity and strengthen rural supply chains.
Under the MoU, NABARD and NaBFID will collaborate on project identification, appraisal, credit structuring, debt syndication and joint monitoring. The partnership will also include capacity-building initiatives aimed at improving the preparation and financing of infrastructure projects.
The collaboration brings together NABARD’s expertise in agriculture and rural development finance with NaBFID’s mandate as a specialised development financial institution focused on long-term infrastructure financing. Their combined approach is expected to facilitate larger and more structured financing for rural infrastructure projects.
The initiative assumes significance as India continues to expand investment in rural infrastructure, where improvements in roads, irrigation, storage, sanitation and logistics can play an important role in strengthening agricultural productivity and rural economic activity.
By facilitating greater access to long-term institutional capital, the partnership is expected to support the development of bankable rural infrastructure projects and strengthen the broader agricultural and rural value-chain ecosystem.
