Lok Sabha Question No. 202 (STARRED), answered on 2025-08-04
Subject: Funds for Infrastructural Development Projects by NABARD
Ministry: FINANCE
Asked by: Shri Sunil Bose, Shri Maddila Gurumoorthy

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## STARRED QUESTION NO. *202

ANSWERED ON MONDAY, AUGUST 4, 2025/SRAVANA 13, 1947 (SAKA)

## FUNDS FOR INFRASTRUCTURAL DEVELOPMENT PROJECTS BY NABARD

## *202. Shri Maddila Gurumoorthy:

Shri Sunil Bose:

Will the Minister of FINANCE be pleased to state:

- (a) the details of funds allocated, sanctioned and released by the National Bank for Agriculture and Rural Development (NABARD) for different categories of infrastructure projects during the last three years in the country, State/UT-wise including Andhra Pradesh, Karnataka and Bihar;
- (b) whether there is year after year reduction in the allocation of funds and if so, the reasons therefor;
- (c) the way by which the quantum of NABARD assistance to Andhra Pradesh compares with other States during the said period;
- (d) whether any proposals from Andhra Pradesh are currently pending with the Government/NABARD  for  approval  or  fund  release  along  with  the  steps  taken  by  the Government in this regard;
- (e)    whether  NABARD's  support  has  led  to  improvement  in  accessibility  to  credit  by  the farmers and reduce the dependency on informal lending and if so, the details thereof;
- (f)  the steps taken/being taken by NABARD to ensure equitable and timely allocation of funds to the States for critical infrastructure development; and
- (g) whether any new initiative has been undertaken by the NABARD to strengthen farmerproducer organisations and if so, the details thereof?

## ANSWER

## THE FINANCE MINISTER (SMT. NIRMALA SITHARAMAN)

- (a) to (g): A statement is laid on the Table of the House.

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## Statement referred in reply to parts (a) to (g) of Lok Sabha Starred Question No. *202 to be answered on 04.08.2025 regarding Funds for Infrastructural Development Projects by NABARD by Shri Maddila Gurumoorthy and Shri Sunil Bose :

(a): NABARD extends loan assistance to State Governments for creation of rural infrastructure through  various  funds  i.e.  Rural  Infrastructure  Development  Fund  (RIDF),  NABARD Infrastructure  Development  Assistance  (NIDA),  Rural  Infrastructure  Assistance  to  State Governments (RIAS), Long Term Irrigation Fund (LTIF), Micro Irrigation Fund (MIF), Food Processing Fund (FPF), Warehouse Infrastructure Fund (WIF) and Fisheries and Aquaculture Infrastructure Development Fund (FIDF). State/UT wise yearly allocation is made under RIDF on the basis of funds allocated by Reserve Bank of India (RBI) from Priority Sector Lending (PSL) Shortfall. Other than RIDF, the support through various funds is provided to States/UTs on the basis of proposals received from the respective State/UT Governments and no yearly allocation is made. The details of funds allocated, sanctioned and released under the RIDF by NABARD to States/UTs during the last three years is given at Annexure I .  The details of amount sanctioned and disbursed to different States/UTs under funds other than RIDF is given at Annexure II .

(b): The reduction in the Priority Sector Lending (PSL) Shortfall fund in the financial year 2024-25 resulted in consequent reduction in RIDF fund allocation to the States/UTs.

(c) & (d): During the past three financial years, Andhra Pradesh has been allocated an average of appx. 5% from the RIDF corpus. As informed by NABARD, no proposal from Andhra Pradesh is currently pending for approval under the above funds.

(e):  NABARD's  funding  support  through  the  above-mentioned  funds  enhances  rural infrastructure viz. roads, irrigation, and storage facilities, which lead to increased productivity and better market access in rural areas. This in turn improves the ability of rural borrowers to absorb and utilize credit effectively. NABARD also provides short-term & long-term refinance to Cooperative Banks and Regional Rural Banks (RRBs) for agricultural loans at concessional rates. As per the findings of NABARD All-India Rural Financial Inclusion Survey (NAFIS) 2021-22, the proportion of agricultural households availing credit from institutional sources increased from 60% in 2016-17 to 75% in 2021-22 .

The Government has also taken various steps to promote accessibility of credit  to  farmers which inter-alia include, increase in limit of collateral free loans under the Kisan Credit Card (KCC) Scheme to ₹ 2 lakh from ₹ 1.6 lakh, inclusion of allied sectors such as animal husbandry and fisheries under KCC scheme, Interest Subvention (IS) and Prompt Repayment Incentive

(PRI) under the Modified Interest Subvention scheme (MISS) which ensure loans upto ₹ 3 lakh at an effective interest rate of 4 %, etc. In the Union Budget 2025-26, the Government has announced to enhance loan limit under the MISS from Rs. 3 lakh to Rs. 5 lakh for loans taken through the KCC.

(f): The State/UT wise allocation of RIDF by NABARD is based on various parameters viz. geographical  area,  rural  population,  composite  infrastructure  development  index,  inverse Credit Deposit (CD) ratio, rural credit, etc. to address regional disparities in infrastructure and enhance  the  credit  absorption  capacity  in  the  rural  areas.  Further,  the  borrowing  power  of States/UTs  and  the  level  of  utilization  of  previous  RIDF  sanctions  are  also  taken  into consideration to ensure equitable distribution and optimal utilization of the limited allocated corpus.  The  proposals  received  from  the  respective  State/UT  Governments  are  processed promptly by NABARD and funds are allocated in a timely manner.

(g): NABARD has promoted formation of 6215 Farmer Producer Organisations (FPOs) till date under various schemes. The major support provided to FPOs inter-alia includes formation of FPOs, capacity building, credit facilitation and market linkage support, financial literacy, etc.  In  addition,  NABARD  in  partnership  with  Small  Farmers'  Agri-Business  Consortium (SFAC)  &  Open  Network  for  Digital  Commerce  (ONDC)  has  conducted  FPO  Melas ('TARANG-celebrating Collectivization') at 50 locations across 24 states/UTs to demonstrate the products of FPOs/OFPOs to enable the marketing & branding of FPO products.

*****

## Statement  referred  to  in  part  (a)  of  Lok  Sabha  Starred  Question  No.  202  regarding  'Funds  for Infrastructural Development Projects by NABARD' due for answer on 04.08.2025

State/UT-wise details of Allocation, Sanction and Disbursement under RIDF during the past three years - FY 2022-23 to FY 2024-25 (₹ crore)

| State/UT                                                                                                                       | Allocation                                                                                                                     | Sanction                                                                                                                       | Disbursement*                                                                                                                  |
|--------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|
| Andhra Pradesh                                                                                                                 | 7,029                                                                                                                          | 7,041                                                                                                                          | 4,700                                                                                                                          |
| Arunachal Pradesh                                                                                                              | 1,341                                                                                                                          | 1,370                                                                                                                          | 1,349                                                                                                                          |
| Assam                                                                                                                          | 9,161                                                                                                                          | 9,261                                                                                                                          | 7,676                                                                                                                          |
| Bihar                                                                                                                          | 6,874                                                                                                                          | 6,806                                                                                                                          | 5,207                                                                                                                          |
| Chhattisgarh                                                                                                                   | 4,884                                                                                                                          | 4,914                                                                                                                          | 3,658                                                                                                                          |
| Goa                                                                                                                            | 1,734                                                                                                                          | 1,735                                                                                                                          | 1,368                                                                                                                          |
| Gujarat                                                                                                                        | 10,742                                                                                                                         | 10,782                                                                                                                         | 9,875                                                                                                                          |
| Haryana                                                                                                                        | 5,189                                                                                                                          | 5,153                                                                                                                          | 4,538                                                                                                                          |
| Himachal Pradesh                                                                                                               | 2,811                                                                                                                          | 2,844                                                                                                                          | 2,485                                                                                                                          |
| Jammu &Kashmir                                                                                                                 | 3,695                                                                                                                          | 3,785                                                                                                                          | 2,343                                                                                                                          |
| Jharkhand                                                                                                                      | 6,396                                                                                                                          | 6,395                                                                                                                          | 5,400                                                                                                                          |
| Karnataka                                                                                                                      | 6,222                                                                                                                          | 6,234                                                                                                                          | 5,504                                                                                                                          |
| Kerala                                                                                                                         | 2,175                                                                                                                          | 2,186                                                                                                                          | 1,775                                                                                                                          |
| Madhya Pradesh                                                                                                                 | 11,016                                                                                                                         | 11,004                                                                                                                         | 9,966                                                                                                                          |
| Maharashtra                                                                                                                    | 5,678                                                                                                                          | 5,661                                                                                                                          | 5,017                                                                                                                          |
| Manipur                                                                                                                        | 400                                                                                                                            | 409                                                                                                                            | 400                                                                                                                            |
| Meghalaya                                                                                                                      | 627                                                                                                                            | 632                                                                                                                            | 633                                                                                                                            |
| Mizoram                                                                                                                        | 658                                                                                                                            | 682                                                                                                                            | 679                                                                                                                            |
| Nagaland                                                                                                                       | 103                                                                                                                            | 100                                                                                                                            | 100                                                                                                                            |
| Odisha                                                                                                                         | 10,537                                                                                                                         | 10,564                                                                                                                         | 10,746                                                                                                                         |
| Puducherry                                                                                                                     | 398                                                                                                                            | 364                                                                                                                            | 243                                                                                                                            |
| Punjab                                                                                                                         | 2,520                                                                                                                          | 2,572                                                                                                                          | 2,223                                                                                                                          |
| Rajasthan                                                                                                                      | 7,529                                                                                                                          | 7,603                                                                                                                          | 6,760                                                                                                                          |
| Sikkim                                                                                                                         | 350                                                                                                                            | 345                                                                                                                            | 200                                                                                                                            |
| Tamil Nadu                                                                                                                     | 9,677                                                                                                                          | 9,702                                                                                                                          | 9,070                                                                                                                          |
| Telangana                                                                                                                      | 2,790                                                                                                                          | 2,789                                                                                                                          | 2,974                                                                                                                          |
| Tripura                                                                                                                        | 2,219                                                                                                                          | 2,298                                                                                                                          | 1,700                                                                                                                          |
| Uttar Pradesh                                                                                                                  | 8,744                                                                                                                          | 8,740                                                                                                                          | 7,908                                                                                                                          |
| Uttarakhand                                                                                                                    | 2,403                                                                                                                          | 2,508                                                                                                                          | 2,158                                                                                                                          |
| West Bengal                                                                                                                    | 6,249                                                                                                                          | 6,311                                                                                                                          | 5,938                                                                                                                          |
| Total                                                                                                                          | 1,40,153                                                                                                                       | 1,40,789                                                                                                                       | 1,22,595                                                                                                                       |
| * Disbursement in some States is higher than sanctioned amount as it also includes the projects sanctioned prior to FY 2022-23 | * Disbursement in some States is higher than sanctioned amount as it also includes the projects sanctioned prior to FY 2022-23 | * Disbursement in some States is higher than sanctioned amount as it also includes the projects sanctioned prior to FY 2022-23 | * Disbursement in some States is higher than sanctioned amount as it also includes the projects sanctioned prior to FY 2022-23 |

## Statement  referred  to  in  part  (a)  of  Lok  Sabha  Starred  Question  No.  202  regarding  'Funds  for Infrastructural Development Projects by NABARD' due for answer on 04.08.2025

State/UT-wise  details  of  Sanction  and  Disbursement  under  funds  other  than  RIDF during the past three years - FY 2022-23 to FY 2024-25 (₹ crore)

| State/UT         | Sanction   | Disbursement   |
|------------------|------------|----------------|
| Andhra Pradesh   | 2,431.29   | 285.02         |
| Assam            | 5,880.76   | 3,844.21       |
| Chhattisgarh     | 2,152.03   | 2.02           |
| Goa              | 161.06     | 164.76         |
| Gujarat          | 4,815.98   | 2,175.31       |
| Haryana          | 1,906.40   | 727.79         |
| Himachal Pradesh | 5.00       | 4.06           |
| Jharkhand        | 502.34     | 502.34         |
| Karnataka        | 1,786.03   | 4,181.59       |
| Kerala           | 7,389.83   | 4,284.66       |
| Madhya Pradesh   | 678.00     | 1,543.17       |
| Maharashtra      | 5,706.56   | 7,449.09       |
| Manipur*         | 0.00       | 6.00           |
| Meghalaya*       | 0.00       | 4.30           |
| Mizoram          | 68.92      | 60.26          |
| Odisha*          | 0.00       | 1,524.46       |
| Punjab           | 3,218.31   | 844.40         |
| Rajasthan        | 7,689.93   | 1,939.55       |
| Tamil Nadu       | 1,236.85   | 5,269.75       |
| Telangana*       | 0.00       | 1,145.39       |
| Uttar Pradesh*   | 0.00       | 4.15           |
| Uttarakhand      | 1,300.59   | 4.06           |
| West Bengal      | 687.75     | 473.00         |
| Total            | 47,617.63  | 36,439.63      |

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