NABARD, NaBFID Sign MoU to Boost Long-Term Financing for Rural Infrastructure Projects
Partnership aims to strengthen financing, advisory support and capacity building for infrastructure projects with strong rural impact
The National Bank for Agriculture and Rural Development (NABARD) and the National Bank for Financing Infrastructure and Development (NaBFID) have entered into a Memorandum of Understanding (MoU) to strengthen collaboration in financing infrastructure projects with significant rural impact.
The agreement establishes a framework for joint financing, knowledge sharing and the development of innovative financing solutions. It focuses on expanding access to long-term, competitively priced finance for projects that strengthen rural infrastructure and value chains.
The MoU was signed in the presence of Ms Monika Kalia, Deputy Managing Director and Chief Financial Officer, NaBFID; Mr Goverdhan S. Rawat and Dr Ajay K. Sood, Deputy Managing Directors, NABARD, along with senior officials from both institutions.
Dr Shaji Krishnan V., Chairman, NABARD, said:
"Rural infrastructure itself has both a social and a commercial dimension. Our role has been to fund financially sustainable, market-based structures, and this partnership lets us work together on value-chain financing, on capacity building through our respective training institutions, and on both the liability and asset sides of our business. I am confident this collaboration can help bridge the rural-urban divide and advance rural prosperity, which remains an important national priority. This MoU is a good starting point, and we look forward to working together towards that larger goal."
Speaking on the partnership, Shri Rajkiran Rai G, Managing Director, NaBFID, said:
"NABARD brings deep, long-standing expertise in the rural sector, and rural infrastructure is emerging as a key driver of economic growth. This collaboration reflects the natural synergy between the two institutions. There is a real opportunity to design commercially viable, bankable projects in areas such as food processing, storage and cold-chain connectivity, and in doing so, contribute meaningfully to raising farmer incomes and strengthening India’s rural economy."
Under the partnership, NABARD and NaBFID will explore funding arrangements and infrastructure advisory services throughout the project lifecycle. The collaboration will cover project identification, appraisal, due diligence, credit structuring, pricing and joint project monitoring.
Both institutions will also work together on advisory services, including project structuring, financial modelling and debt syndication. Joint capacity-building programmes will leverage the training institutions of NABARD and NaBFID to strengthen expertise in infrastructure financing.
The collaboration will extend to Public Private Partnership (PPP) projects, agri-value chains and infrastructure with strong rural linkages. Priority sectors include water and sanitation, irrigation, post-harvest storage and cold-chain facilities, terminal markets, rural roads and bridges, warehousing and compressed biogas.
According to the institutions, these focus areas are aimed at supporting resilient and future-ready rural infrastructure aligned with the vision of Viksit Bharat.
The partnership seeks to improve the availability of long-term finance for rural infrastructure and allied value chains by supporting commercially viable projects, improving connectivity and market access, and contributing to higher rural incomes.
By combining their respective strengths, NABARD and NaBFID aim to support sustainable rural development and help narrow the rural-urban divide.