Lok Sabha Question No. 1681 (UNSTARRED), answered on 2015-07-30
Subject: RIDF
Ministry: RURAL DEVELOPMENT
Asked by: M. B. RAJESH

## GOVERNMENT OF INDIA MINISTRY OF RURAL DEVELOPMENT DEPARTMENT OF RURAL DEVELOPMENT

## LOK SABHA UNSTARRED QUESTION NO. 1681 TO BE ANSWERED ON 30.07.2015

## RIDF

## 1681. SHRI MB. RAJESH

Will the Minister of RURAL DEVELOPMENT be pleased to state:

- a whether the Government has   proposed to conduct a comprehensive review of implementation of Rural Infrastructure Development Fund (RIDF);
- whether the Government proposes to restructure the RIDF; and
- if so, the details thereof:
- (d) if s0, the details thereof ?

## ANSWER MINISTER OF RURAL DEVELOPMENT (SHRI BIRENDER SINGH)

(a) to (d): The Rural Infrastructure Development Fund (RIDF) which is a fund of National Bank for Agriculture and Rural  Development (NABARD) does not come in the purview of Ministry of Rural Development: Information obtained from NABARD indicates that the implementation of RIDF is being reviewed periodically by NABARD's Board of Directors and the Project  Sanctioning Committee (PSC) which is Sub Committee of Board, empowered to sanction RIDF projects. The brief on Implementation of RIDF as supplied by NABARD is enclosed as Annexure-Land the list of activities covered under RIDF is enclosed as Annexure I

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## to (d) of Lok Sabha Unstarred Q No1681 th due for answer on 305 July2015

## Brief on Implementation of RIDF

1. The Rural Infrastructure Development Fund (RIDF) was set up with NABARD in 199596 from out of shortfall in lending to priority sector by scheduled commercial banks. The fund which started as a "last mile approach' to facilitate completion of ongoing irrigation, flood protection and watershed management during 1995-96, today covers as many as 34 activities which are broadly classified under three categories as (i) Agriculture and related sector (ii) Social sector and (iii) Rural connectivity (Annexure\_ID). While annual corpus level has grown from Rs.2,000 crore in 1995-96 to Rs.25000 crore under RIDF XXI (201516), the cumulative allocation (RIDF I to XX) stood at Rs.2,17,500 crore (inclusive of Rs.18500 crore under Bharat Nirman Programme). As many as 5,36,781 projects have been sanctioned to 30 State\_Governments/UTs involving cumulative sanction of Rs.2,30,951 crore against which Rs.1,66,489 crore have been disbursed as on 31 March 2015. Over the years, RIDF has emerged as the single largest source of capital formation (19%) from financial institutions and the demand from State Governments has been increasing: public
2. 2 NABARD has been able to support infrastructure projects of 30 State Governments/UTs the last two decades and RIDF has become very cost effective source of funding: Apart from   funding, NABARD has added value in terms of sector-wise critical infrastructure planning through State Focus Papers, appropriate prioritization of projects, streaml the procedural aspects like administrative approval, e-tendering processes,  periodical review of projects by High Power   Committee   chaired by Chief Secretary of the State   Governments. NABARD has  also given   priority for  agriculture related and irrigation projects with higher quantum of loan at 95% and given due weightage for North East Region and hilly states for connectivity and social sector projects. Out of the earnings from RIDF funding; NABARD has created Rural Infrastructure Promotion Fund to provide grant assistance for innovative infrastructure pilots and capacity building of stakeholders. during ining prior
3. to various State Governments is estimated to have created an irrigation potential of 258 lakh ha and 396 lakh kms of rural roads creating recurring employment of 1.80 crore jobs and non-recurring employment of 1132 crore mandays. A few  studies on the impact of RIDF by reputed national institutes like IIMs, IITs have documented improved agricultural productivity and improved income levels of farmers and also revealing enhanced demand for credit in the project areas apart from diversification of

lending portfolio, growth in deposits, improved branch network leading to greater financial inclusion.

- 4\_ Over the years, depending upon the capital formation requirement in different critical rural   infrastructure, various state   governments  have approached NABARD for inclusion of additional activities which have been recommended by Board of NABARD and approved by Government of India as eligible for funding under RIDF. The list of such activities added over the years is given in Annexure I. public
- 5\_ To evaluate the effectiveness of RIDF on the intended outcomes in rural India and also to look at possible improvements in funding   policy and operational   systems and procedures;

NABARD has commissioned 12 Impact Evaluation Studies to assess the overall impact of RIDF interventions at ground level. These studies across irrigation and connectivity sectors covering all geographical zones in the country have been outsourced to reputed national IITs. The main objectives of RIDF Impact Evaluation Study include the following: IIMs;

- 6\_ The preliminary findings indicate   positive impact of RIDF funding of projects on improved agricultural productivity and improved income levels of farmers but also revealed enhanced demand the   project areas  apart  from  diversification of lending portfolio,  growth in deposits; improved branch network   leading to   greater financial inclusion.

## Annexure-II

## Statement referred toin reply to\_parts (a to (d)of Lok Sabha Unstarred Q No1681 th July2015

## wherever expedient

| Date of Inclusion   | Activities included                                                                                                                                                                                                                          |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 04 July 1995        | Ongoing Medium and Minor Irrigation Projects                                                                                                                                                                                                 |
| 22 August 1995      | Ongoing infrastructure projects in other sector like land development, soil conservation; watershed development; afforestation, etc. Rural   Roads & which  would help marketing centres Bridges linking                                     |
| 22 April 1997       | Social Forestry and Soil Conservation Tube wells with small command area Renovation of existing tanks Salinity Ingress Schemes Watershed projects Bridge on State Highways Main District Roads (MDR), Other District Roads and Village Roads |
| 16 July 1998        | Percolation tanks                                                                                                                                                                                                                            |
| 14 December 1998    | Construction of Fish Jetties Construction of Cold Storages and Godowns                                                                                                                                                                       |
| 19 July 1999        | Drinking Water Supply Projects                                                                                                                                                                                                               |
| 25 April 2000       | Power transmission system improvement Connectivity of through IT Mini Hydel Projects villages `                                                                                                                                              |
| 28 September 2000   | Projects in Power Sector                                                                                                                                                                                                                     |
| 03 March 2002       | Flood Protection Works                                                                                                                                                                                                                       |
| 14 2005 May         | Preference to Agri related projects improving agricultural productivity                                                                                                                                                                      |
| 25 July 2005        | Infrastructure facilities in Schools laboratories etc. viz ,                                                                                                                                                                                 |
|                     | Special Provisions for Hilly &North Eastern States                                                                                                                                                                                           |
| 23 January 2009     | System Improvement in Power Sector                                                                                                                                                                                                           |
| 24 April 2009       | Power projects upto 25 MW                                                                                                                                                                                                                    |
| 27 August 2010      | Warehousing and allied activities Flood Protection Projects                                                                                                                                                                                  |
| 29 March 2011       | Kharland Development Projects                                                                                                                                                                                                                |

| 22 September 2011   | Underground Drainage (Sewage) Infrastructure Projects                                                                                                                                                                                                                |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 22 December 2011    | Rural Education Sector                                                                                                                                                                                                                                               |
| 23 September 2013   | Construction of Hostel Complex and Hospital Staff Quarters                                                                                                                                                                                                           |
| 27 2014 May         | Solid Waste Management and Infrastructure works related with sanitation in rural areas Infrastructure works related with alternate sources of energy viz. Solar; Wind, etc. and Energy Conservation Hydel Projects upto 25 MW 5/10 MW Solar Photovoltaic Power Plant |