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 strengthen collaboration in financing infrastructure projects with significant rural impact.
The partnership combines NABARD’s expertise in agriculture and rural infrastructure with NaBFID’s specialised capabilities in long-term infrastructure financing. The collaboration will focus on joint financing, knowledge sharing and innovative financial solutions aimed at improving access to long-term and competitively priced finance for rural infrastructure and value-chain projects.
Focus on Long-Term Rural Infrastructure Finance
The MoU establishes a framework through which the two institutions will explore financing opportunities and infrastructure advisory services across the project lifecycle.
This will cover activities including:
- Project identification
- Project appraisal and due diligence
- Credit structuring and pricing
- Joint project monitoring
- Financial modelling
- Project structuring
- Debt syndication
- Infrastructure advisory services
The institutions will also undertake joint capacity-building initiatives by leveraging their respective training institutions to promote knowledge exchange and strengthen expertise in infrastructure financing.
Strengthening Rural Value Chains
The collaboration is expected to support commercially viable projects that can strengthen rural connectivity, agricultural value chains and market access.
Speaking about the partnership, Dr Shaji Krishnan V., Chairman, NABARD, highlighted the social and commercial importance of rural infrastructure. He said the collaboration could support value-chain financing and capacity building while helping bridge the rural-urban divide and advance rural prosperity.
Shri Rajkiran Rai G., Managing Director, NaBFID, said the partnership reflects the natural synergy between the two institutions. He highlighted opportunities to develop commercially viable and bankable projects in areas such as food processing, storage and cold-chain connectivity, which can contribute to higher farmer incomes and a stronger rural economy.
Key Infrastructure Areas
The partnership will cover Public Private Partnership (PPP) projects, agri-value chains and infrastructure projects with strong rural linkages.
Key focus areas include:
- Water and sanitation
- Irrigation
- Post-harvest storage
- Cold-chain facilities
- Terminal markets
- Rural roads and bridges
- Warehousing
- Compressed biogas
These sectors are considered important for developing resilient and future-ready rural infrastructure while supporting India’s broader Viksit Bharat development vision.
Supporting Rural Economic Growth
By combining NABARD’s rural-sector expertise with NaBFID’s infrastructure-financing capabilities, the partnership aims to increase the availability of long-term funding for rural infrastructure and allied value chains.
Improved infrastructure can help strengthen connectivity, logistics, storage capacity and market access, while supporting commercially sustainable projects that contribute to higher rural incomes.
The collaboration is also expected to help develop stronger infrastructure ecosystems in rural areas and contribute to reducing the rural-urban development gap.
About NaBFID
The National Bank for Financing Infrastructure and Development (NaBFID) is a Development Financial Institution established in April 2021. It focuses on addressing the long-term financing requirements of India’s infrastructure sector.
The institution aims to accelerate infrastructure development, support sustainable economic growth and catalyse investment in transformative infrastructure projects. It is also working towards developing deeper and more liquid markets for bonds, loans and derivatives associated with infrastructure financing.
About NABARD
The National Bank for Agriculture and Rural Development (NABARD) is India’s premier development financial institution focused on agriculture and rural development.
Established on July 12, 1982, and headquartered in Mumbai, NABARD works to promote sustainable and equitable agricultural and rural prosperity through credit support, institutional development, related services and innovative initiatives.
Through its role in rural finance and development, NABARD supports farmers, rural institutions and the broader rural economy.
A Strategic Step for Rural Infrastructure
The NABARD-NaBFID partnership brings together two complementary areas of expertise: rural development finance and long-term infrastructure finance.
As India continues to expand its infrastructure network and strengthen agricultural and rural value chains, greater access to long-term capital could help unlock investment in critical areas such as irrigation, warehousing, cold chains, roads, sanitation and food processing.
The new MoU provides a framework for both institutions to work together on bankable projects and financing solutions that can support sustainable rural development, stronger value chains and India’s long-term economic growth.