Lok Sabha Question No. 2371 (UNSTARRED), answered on 2025-12-15
Subject: NABARD Funds in Karnataka
Ministry: FINANCE
Asked by: Shri Kota Srinivasa Poojary

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

## LOK SABHA UNSTARRED QUESTION NO. 2371

ANSWERED ON MONDAY, 15 DECEMBER, 2025/ 24 AGRAHAYANA, 1947 (SAKA)

## NABARD Funds in Karnataka

## 2371. SHRI KOTA SRINIVASA POOJARY:

Will the Minister of FINANCE be pleased to state:

(a)  whether  it  is  a  fact  that  there  are  complaints  of  less  funds  being  released  through  the NABARD Scheme in the State of Karnataka, if so, the details thereof;

(b) the criteria /guidelines for NABARD Scheme;

(c) the types of projects which are eligible for NABARD loan facility;

(d) the details of loans released by NABARD to the State of Karnataka during the last three years for promoting sustainable and equitable agriculture and rural development;

(e) the details of Schemes launched by NABARD for skill development; and

(f) the steps taken by NABARD to increase the amount of fund allocated for skill development training?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a) to (d): In order to ensure adequate flow of credit from the banking system to the sectors of the economy which are crucial for socio-economic development, Priority Sector Lending (PSL) targets are allotted to banks by the Reserve Bank of India (RBI). In the event of any shortfall in achievement of PSL targets by the banks, funds are then allocated to financial institutions for  financing  critical  sectors.    National  Bank  for  Agriculture  and  Rural  Development (NABARD) receives annual allocations from the PSL shortfall corpus from which it releases funds to states.

In recent years, due to the improved performance of banks in meeting the target for Priority Sector Lending, the PSL shortfall corpus has been decreasing.

In  view  of  the  reduced  PSL  shortfall,  the  allocation  under  various  funds  out  of  PSL  was rationalized,  keeping  in  view  the  demand  of  institutions,  priorities  of  the  Government  and utilization of funds during previous years. As a result of reduction in allocation to Short Term Seasonal  Agricultural  Operations  (ST  (SAO))  funds,  there  was  reduced  fund  allocation  to Karnataka by NABARD.

NABARD implements various schemes for agricultural and rural development in the country, which inter-alia include refinance for rural financial institutions (both Short term and Long term), Direct Refinance Assistance for Cooperative Banks, NABARD  Infrastructure Development Assistance (NIDA) for infrastructure financing, Rural Infrastructure Development  Fund  (RIDF),  Food  Processing  Fund  (FPF),  Warehouse  Infrastructure  Fund (WIF), Tribal Development Fund (TDF), etc. The eligibility criteria are decided as per the scheme guidelines.

The details of loans sanctioned to the Govt. of Karnataka by NABARD for the past three years are given at Annexure I .

(e) to (f): NABARD supports skill development and entrepreneurship among rural youth and women  through  various  skill  development  programmes,  such  as  Skill  Development  and Entrepreneurship among Rural Youth (SDERY), Micro Enterprise Development Programme (MEDP)  for  Women  Self  Help  Group  (SHG)  members  and  Livelihood  and  Enterprise Development Programme (LEDP) for Women SHG Members. NABARD does not maintain any fixed allocation exclusively for skill development training programmes. However, in case of higher requirement, proposals are considered subject to eligibility, relevance and demand for those schemes .

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## Statement referred to in part (a) to (d) of Lok Sabha Sabha Un-Starred Question No. 2371 on 'NABARD funds in Karnataka' due for answer on 15.12.2025

Details of loans sanctioned by NABARD in the State of Karnataka during past three years (Amount in ₹ crore)

| Product/Scheme                                        | 2022-23   | 2023-24   | 2024-25   |
|-------------------------------------------------------|-----------|-----------|-----------|
| Total Long Term Refinance                             | 9378.1    | 11479.6   | 7128.37   |
| Total Short Term Refinance                            | 14726     | 14726     | 14313.6   |
| Direct Refinance Assistance (DRA) (Cooperative Banks) | 532       | 892.09    | 1430.71   |
| NABARD Infrastructure Development Assistance (NIDA)   | 97.39     | 1362.27   | 1020.30   |
| Rural Infrastructure Development Fund (RIDF)          | 1367.76   | 1727.50   | 2408.11   |
| Micro Irrigation Fund (MIF)                           | -         | 110.23    | 49.63     |
| Warehouse Infrastructure Fund (WIF)                   | 46.07     | -         | -         |