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 financing for infrastructure projects with a strong rural impact. The partnership combines NABARD’s experience in agriculture and rural development with NaBFID’s expertise in long-term infrastructure finance. The agreement will provide a framework for joint financing, project advisory, knowledge sharing and development of new financing solutions for rural infrastructure and allied value chains.
The two institutions will work together to improve access to long-term and competitively priced funding for commercially viable projects. The collaboration will cover the complete project lifecycle, including identification, appraisal, due diligence, credit structuring, pricing and joint monitoring. The MoU was signed in the presence of Monika Kalia, Deputy Managing Director and Chief Financial Officer, NaBFID, 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 the partnership would help combine commercial financing with the social importance of rural infrastructure. “Rural infrastructure has both a social and commercial dimension. This partnership will allow us to work together on value-chain financing, capacity building and other areas of mutual interest. I am confident this collaboration can help bridge the rural-urban divide and support rural prosperity,” he said.
Rajkiran Rai G, Managing Director, NaBFID, said rural infrastructure is becoming an important contributor to economic growth.“NABARD brings deep and long-standing expertise in the rural sector, while NaBFID has specialised capabilities in infrastructure financing. There is a strong opportunity to develop commercially viable and bankable projects in areas such as food processing, storage and cold-chain infrastructure. These investments can strengthen rural economies and contribute to higher farmer incomes,” he said.
The partnership will also cover Public Private Partnership projects and infrastructure linked to agricultural value chains. Priority areas include water and sanitation, irrigation, post-harvest storage, cold chains, terminal markets, rural roads and bridges, warehousing and compressed biogas projects.
NABARD and NaBFID will also explore advisory support covering project structuring, financial modelling and debt syndication. Their respective training institutions will collaborate on capacity-building programmes and knowledge exchange in infrastructure financing.
The initiative is aimed at improving connectivity, market access and infrastructure capacity in rural areas. It will also support the development of financially sustainable projects aligned with India’s broader Viksit Bharat objectives. By bringing together their respective financial and sectoral strengths, NABARD and NaBFID intend to create greater opportunities for long-term investment in rural infrastructure and strengthen the foundations of a more connected and productive rural economy.
The National Bank for Agriculture and Rural Development (NABARD) is a development financial institution established in 1982. Headquartered in Mumbai, NABARD works to promote sustainable and equitable agriculture and rural prosperity through credit support, institutional development and related initiatives.
The National Bank for Financing Infrastructure and Development (NaBFID) was established in April 2021 as a Development Financial Institution. It focuses on addressing the long-term financing requirements of India’s infrastructure sector and supporting the development of deeper and more efficient infrastructure finance markets.
