The Memorandum of Understanding (MoU) provides a framework for joint financing, knowledge sharing and the development of innovative financing solutions, with a focus on expanding access to long-term, competitively priced finance for projects that can strengthen rural infrastructure and value chains, a joint statement said on Thursday.
The MoU, signed by NABARD (National Bank for Agriculture and Rural Development) Chairman Shaji Krishnan V and NaBFID (National Bank for Financing Infrastructure and Development) Managing Director Rajkiran Rai G, seeks to cover Public Private Partnership (PPP) projects and agri-value chains as well as infrastructure with strong rural linkages.
Key areas include water and sanitation, irrigation, post-harvest storage and cold-chain facilities, terminal markets, rural roads and bridges, warehousing and compressed biogas, it said, adding, these areas are critical to building resilient and future-ready rural infrastructure in line with the vision of Viksit Bharat.
“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,” NABARD Chairman Shaji Krishnan V said.
Speaking on the partnership, NaBFID Managing Director Rajkiran Rai G said this partnership 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, he added.The partnership aims to facilitate greater availability of long-term finance for rural infrastructure and allied value chains, supporting commercially viable projects, improving connectivity and market access, and contributing to higher rural incomes, it said.
By combining their respective strengths, NABARD and NaBFID aim to support sustainable rural development and contribute to narrowing the rural-urban divide, it added.