Annual Report 2023-24 Financial Investment PDF

Annual Report 2023–2­4 I Investment in nvestment in infrastructure has a multiplier effect on growth and employment in an economy. infrastructure Rural infrastructure development strongly figures in the government’s plans and policies to map...

Annual Report 2023–2­4 I Investment in nvestment in infrastructure has a multiplier effect on growth and employment in an economy. infrastructure Rural infrastructure development strongly figures in the government’s plans and policies to map and productive the Indian landscape on the basis of connectivity and logistics. Intra-regional infrastructure to capacity has a integrate rural areas with nearby urban centres can transform India’s growth trajectory. multiplier effect on growth and employment in an economy. Figure 5.1: NABARD-managed infrastructure funds for rural India as on 31 March 2024 (₹ crore) 77.7 5,51,724.2 52.5 4,37,440.9 79,365.7 85,790.8 2.5 50,115.5 43,569.8 ` 61,350.9 3.1 42,563.9 9,934.4 RIDF 502.3 RIPF 7,304.0 2,605.1 A LT ID I F N 3,248.3 4,724.7 0.0 290.3 FIDF MIF 880.6 3,387.8 289.2 871.8  G AY- DID 0.0 0.0 PM F 176.3 0.0 3,015.6 FP -G 61,975.0 F M WIF SB 2,260.9 65.0 0.0 48,819.0 106.3 92.3 0.0 367.3 1,191.6 15,000.0 768.8 12,298.2 9,452.6 9,042.5 FY2024 CUMULATIVE TOTAL Sanctioned 61,002.3 8,15,566.2 Disbursed 54,287.0 6,19,871.9 RIDF sector composition (till 31 March 2024) 5.5 lakh crore 4.4 lakh crore No. of projects: 7.8 lakh Rural Agriculture connectivity Social sector 43% 36% 21% DIDF = Dairy Processing and Infrastructure Development Fund, FIDF = Fisheries and Aquaculture Infrastructure Development Fund, FPF = Food Processing Fund, LTIF = Long Term Irrigation Fund, MIF = Micro-Irrigation Fund, NIDA = NABARD Infrastructure Development Assistance, PMAY-G = Pradhan Mantri Awaas Yojana-Gramin, RIDF = Rural Infrastructure Development Fund, RIPF = Rural Infrastructure Promotion Fund, SBM-G = Swachh Bharat Mission-Grameen, WIF = Warehouse Infrastructure Fund. 64  ` Financing Rural Infrastructure for Sustainable Development Robust and reliable rural infrastructure to support modern agriculture, improved irrigation, NABARD provides enhanced rural connectivity, better market access, more renewable energy, and quality education technical and health is vital for enhancing production, consumption, and trade of goods and services. This, in assistance and financial support turn, will lead to more sustainable rural livelihoods in India. for the construction NABARD plays a crucial role in facilitating the financing, promotion, and sustainable of rural roads, irrigation systems, development of rural infrastructure. It provides technical assistance and financial support for warehousing the construction of rural roads, irrigation systems, warehousing facilities, and renewable energy facilities, and installations by leveraging various funds vested in it. The cumulative funds sanctioned by NABARD renewable energy till FY2024 under infrastructure financing stood at ₹8.2 lakh crore while disbursements added up to installations. ₹6.2 lakh crore (Figure 5.1). Figure 5.2: Performance of RIDF as on 31 March 2024 FUNDING BY REGION 8,144 5,614 5,989 7,124 7,533 5,815 7,111 8,858 7,657 5,819 8,929 10,052 5,264 4,002 8,432 11,533 5,909 4,993 8,230 10,300 6,051 5,577 9,627 10,682 9,937 7,238 2,609 3,879 9,839 7,517 3,651 4,798 10,144 8,385 4,227 5,530 North W est South Central East North-East FUNDING BY SECTOR NUMBER OF PROJECTS FUNDED FY2024 Agriculture & related 6,392 11,405 Agriculture 8,030 11,918 2,283 7,302 5,833 (33%) 3,686 11,008 10,898 Irrigation 11,314 7,547 1,403 13,448 13,065 3,693 6,752 Rural connectivity Rural bridges 3,940 3,098 1,346 5,298 4,085 (54%) 5,930 9,962 2,420 Rural roads 11,586 7,915 4,584 11,444 9,707 14,825 2,408 Social sector (13%) Social sector 12,367 6,839 1,399 12,624 9,820 45,881 33,883 (100%) 47,238 37,317 11,015 Total 50,116 42,564 Funds sanctioned (` crore) FY2022 FY2023 FY2024 Funds disbursed (` crore) FY2022 FY2023 FY2024 RIDF = Rural Infrastructure Development Fund. 65  Annual Report 2023–2­4 Since 1996, RIDF has contributed 5.1 RURAL INFRASTRUCTURE DEVELOPMENT FUND1 significantly to improved rural The Rural Infrastructure Development Fund (RIDF) (instituted in 1996) aims to support connectivity public investment, given the shortfall of priority sector lending, thus bridging the rural– and agricultural urban infrastructure gap towards promoting inclusive rural growth and socioeconomic productivity development. in India. 5.1.1 Trends and patterns During FY2024 (RIDF Tranche XXIX), NABARD received an allocation of ₹40,474.6 crore under RIDF (2.4% increase over FY2023) and sanctioned ₹50,115.5 crore towards financing rural projects in agriculture and related activities, irrigation, social sector, and rural connectivity (Figure 5.2). 5.1.2 Output>>Outcomes>>Impact Over the decades, RIDF has played a significant role in financing rural infrastructure projects across India, contributing to improved rural connectivity and agricultural productivity (Figure 5.3, Showcase 5.1). Figure 5.3: Outputs and outcomes under RIDF as on 31 March 2024 Rural roads Irrigation potential 5.6 lakh kilometre 422.2 lakh hectare Non-recurring employment generation Rural bridges 3,096.2 crore person-days 14.1 lakh metre RIDF = Rural Infrastructure Development Fund. 66  ` Financing Rural Infrastructure for Sustainable Development Showcase 5.1: Augmenting irrigation facilities in rainfed areas of Bundelkhand Project: Providing irrigation facilities in rainfed areas Location: 15 villages of Babina block, Jhansi district, Bundelkhand region, Uttar Pradesh Implementing agency: Irrigation and Water Resource Department, Government of Uttar Pradesh Total financial outlay: ₹246.8 crore NABARD assistance: ₹146.2 crore Year of completion: FY2024 Challenge addressed: Irrigation in drought-prone villages not within the command of any other project. Intervention A pump house was constructed upstream of the Sukwan–Dukhwan on the left bank of the Betwa river. Output>>Outcomes>>Impact Culturable command area created: 5,799 hectare Construction of pump house and canal system Number of villages benefitted: 15 Impact evaluation studies on RIDF projects have indicated improvements in rural socioeconomic conditions and rise in credit demand within project areas (Box 5.1). Additionally, these studies have shown a diversification of lending portfolios, growth in deposits, and expansion of bank branch networks, contributing to enhanced financial inclusion. Furthermore, the investments and interventions have led to better rural health benefits, which have not just reduced rural health care expenses but also resulted in a more productive rural workforce. 5.1.3 New initiatives in FY2024 NABARD contributed to the state share of flagship GOI schemes by sanctioning projects worth ₹5,155 crore under Jal Jeevan Mission, ₹1,063 crore under Pradhan Mantri Kusum Yojana, and ₹617 crore towards the installation of 20,000 solar powered pump sets under the Saur Sujala Scheme in Chhattisgarh. During the year, the RIDF portal underwent changes such as the introduction of an appraisal and disbursement module and monitoring through geo map. NABARD contributes 5.2 RURAL INFRASTRUCTURE PROMOTION FUND to the state share of flagship central Financial assistance is provided under Rural Infrastructure Promotion Fund (RIPF) for the schemes such as building of innovative, experimental, or promotional last mile rural infrastructure and rural Jal Jeevan Mission, capacity building initiatives. Pradhan Mantri Kusum Yojana, As on 31 March 2024, cumulative sanctions under RIPF stood at ₹77.7 crore and disbursements and Saur Sujala at ₹52.5 crore. Scheme. 67  Annual Report 2023–2­4 Box 5.1: RIDF-supported social sector projects: Impact evaluation by IIT Kharagpur 1. Impact evaluation of rural drinking water supply project in Odisha indicated increased availability of water, decreased use of surface water sources for drinking, reduced time allocation by women to the task of fetching water, improved hygiene practices, reduced open defecation, decreased water-borne diseases, and improved health and wellbeing with increased economic activities. 2. Impact evaluation of anganwadi project in West Bengal indicated improvements in school attendance; health check-ups of children, as also pregnant and nursing mothers; awareness level, knowledge, and skills; access to nutritious food and safe drinking water; cleanliness of the surroundings; and frequency of bank transactions, use of ATM cards, institutional savings and availment of bank loans. Food habits and nutritional status of the children, hygiene levels, drinking water and sanitation facilities, and quality of awareness building and education delivery at the centres could be improved further. IIT = Indian Institute of Technology, RIDF = Rural Infrastructure Development Fund. Showcase 5.2: Time-controlled automated sprinkler irrigation system for greenhouse cultivation Project: Time-controlled automated sprinkler irrigation system for greenhouse cultivation Location: South Sikkim (Namchi) district, Sikkim Implementing agency: Agricultural Technology Management Agency, Sikkim Total financial outlay: ₹5.4 lakh NABARD assistance: ₹4.8 lakh Challenge: Improving water-use efficiency in dry area for higher production and yield. Intervention: Automated time-based irrigation systems optimising soil moisture using sensor and pump set up in greenhouses for horticulture and floriculture. Beneficiaries: Five flower growers Output>>Outcomes>>Impact 30%–40% water saved. Improvement in foliar growth, quality of flowers, plant health, root growth, etc. Savings in time and effort due to automated system. Poly house 68  ` Financing Rural Infrastructure for Sustainable Development 5.3 LONG TERM IRRIGATION FUND2 The Long-Term Irrigation Fund (LTIF) funding arrangement has been extended up to FY2026 for LTIF was introduced state governments for 60 ongoing projects under the Accelerated Irrigation Benefit Programme and in the Union 85 projects under Command Area Development and Water Management with Government of India Budget for FY2017 to expedite the interest subvention up to 2%. completion of 99 medium and Figure 5.4: Performance of the LTIF major irrigation Out of the 99 projects, projects across 18 AIBP component of states in mission FY2024 Cumulatively, as on 31 March 2024: 58 projects completed Central share State share mode. Later, four State share as on 31 March 2024. more projects were 502.3 46,495.9 39,294.9 added, namely, Of the 34.6 lakh ha irrigation 2,605.1 26,500.6 34,850.3 Polavaram project potential augmentation in Andhra Pradesh, targeted, 25.20 lakh ha Sanctioned ( crore) achieved during 2016–2023.a North Koel project Disbursed ( crore) in Bihar and Jharkhand, re- lining of Sirhind and a Rajasthan feeders As shared by Ministry of Jal Shakti, Government of India. in Punjab, and AIBP = Accelerated Irrigation Benefit Programme, LTIF = Long Term Irrigation Fund. Shahpurkandi Dam in Punjab. 5.4 MICRO-IRRIGATION FUND3 Micro Irrigation Fund (MIF) was announced in the Union Budget for FY2020 endowed with the initial corpus of ₹5,000 crore, to be operationalised by NABARD for the period FY2020–FY2024. Figure 5.5: Performance of MIF as on 31 March 2024 FY2024: Sanctioned 290 crore; Disbursed 872 crore 150 Cumulative: Sanctioned 4,725 crore, Disbursed 3,388 crore 15 32 1 791 Andhra Pradesh 353 Gujarat 741 350 Haryana Karnataka 764 Punjab 567 290 Rajasthan 616 110 616 Tamil Nadu 1,358 Uttarakhand 1,358 Output Cumulative sanction ( crore) Expected expansion of micro-irrigation coverage: 19.1 lakh hectare Cumulative disbursement ( crore) Coverage achieved as on 31 March 2024: 16.6 lakh hectare MIF = Micro-Irrigation Fund. 69  Annual Report 2023–2­4 The objective of MIF is to support state governments in mobilising additional resources to expand micro-irrigation coverage and encourage its adoption beyond the provisions of Pradhan Mantri Krishi Sinchayee Yojana—Per Drop More Crop. 5.5 NABARD INFRASTRUCTURE DEVELOPMENT ASSISTANCE4 NABARD Infrastructure Development Assistance (NIDA) offers flexible long-term loans to state governments, well-managed public sector entities, and other eligible entities for financing rural infrastructure. Through NIDA, NABARD has been contributing to the creation of key Figure 5.6: Performance of NIDA as on 31 March 2024 FY2024, term loan sanctioned: 9,934.4 crore Agriculture storage and marketing infrastructure Social sector Roads Projects Sanctioned Share% Projects Sanctioned Share% Projects Sanctioned Share% 2 3,121.3 crore 31% 2 2,853.9 crore 29% 5 1,923.5 crore 19% Power transmission flood protection Rural education Irrigation and Projects Sanctioned Share% Projects Sanctioned Share% Projects Sanctioned Share% 3 785.6 crore 7% 2 730 crore 7% 1 520 crore 5% ` Cumulative: 153 projects with sanctioned term loan of 79,365.7 crore (including for withdrawn projects) Amount disbursed till 31 March 2024: 43,569.8 crore Cumulative term loan sanctioned by sector (amount in  crore) Others, 4,691.1, 6% Social sector, 7,525.9, 10% Irrigation, 31,498.6, 40% Drinking water, 9,786.4, 12% Rural connectivity, 12,272.4, 15% T ransmission and renewable energy, 13,591.3, 17% NIDA = NABARD Infrastructure Development Assistance Notes: Social sector includes health, education, rural housing, rural tourism, anganwadis, and old age homes. Others include agricultural marketing, warehousing, watershed development, communication, sewerage, etc. 70  ` Financing Rural Infrastructure for Sustainable Development infrastructure and improving the quality of life in rural India. The scope for funding has further broadened with the inclusion of public–private partnership (PPP) and non-PPP projects to be undertaken by registered entities like corporates/companies, cooperatives, etc. Figure 5.7: Expected outcomes of projects funded under NIDA Irrigation Warehousing and cold storage capacity 24.21 lakh ha covered 29,600 metric tonnes Micro-irrigation Sanitation 1.4 lakh ha covered STP (15 MLPD) with linked sewer lines Renewable energy 4 solar and 5 wind power Communication projects in 7 states Net-connected (113 mega watt) 30,000+ government offices 20 lakh households (free) Power transmission Rural tourism 55 projects in 15 states Development of infrastructure for Rural connectivity 13,167.7 km road length  tourism facilities at Jongal Balahu Archaeological Site in Assam 7.9 km bridge length Rural housing PMAY-G: 3.5 lakh units Rural education 8 medical colleges Social infrastructure 3 engineering colleges Construction and upgrading of 1 sericulture college old age homes 15 government model colleges childcare institutions 1,500 schools Drinking Agriculture integrated sports complexes marketing 6,840 anganwadis water supply 84 district hospitals 31,722 habitations with infrastructure 153 community healthcare centres doorstep water supply Integrated horticulture 4 sub-divisional hospitals market handling 20 lakh metric tonnes per year ha = hectare, MLPD = million litres per day, NIDA = NABARD Infrastructure Development Assistance, PMAY-G = Pradhan Mantri Awaas Yojana–Gramin, STP = sewage treatment plant. Showcase 5.3: Narmada–Kshipra Link Multipurpose Project Project: Narmada–Kshipra Link Multipurpose Project, Madhya Pradesh Location and challenge: Inter-basin water transfer through piped irrigation network to water- scarce areas of upper Chambal basin. Total project cost: ₹1,856.7 crore NIDA term loan: ₹1,745.8 crore Output>>Outcomes>>Impact Irrigation facilities extended to 30,000 hectare in 162 villages across Ujjain and Shajapur districts, enhancing crop yield. Quality drinking water supply to over 1.5 million people. Diversification to high-value hybrid crops like wheat, maize, gram, and other horticulture crops. Rise in farmers’ income up to ₹77,015 per hectare reducing rural–urban migration. 71  Annual Report 2023–2­4 Narmada–Kshipra Link Multipurpose Project, Madhya Pradesh 5.6 POST-HARVEST INFRASTRUCTURE NABARD has been offering loans and subsidies for setting up post-harvest infrastructure such as warehouses, cold storage facilities, processing units, packaging centres, etc., (Figures 5.8–5.10). 5.6.1 Warehouse Infrastructure Fund5 NABARD extends financial assistance through the Warehouse Infrastructure Fund (WIF) to state governments, state-owned agencies, and corporate entities to systematically enhance warehouse capacity, thereby strengthening agricultural value chains. The investment through WIF plays a pivotal role in facilitating and enhancing farmers’ access to finance through negotiable warehouse receipts (NWR). Figure 5.8: Sanctions and disbursements under WIF as on 31 March 2024 (₹ crore) Corpus 4,481 5,000 9,481  allocated Sanction 4,460 4,992 9,453 Disbursement 4,094 4,949 9,042 WIF 2013–14 WIF 2014–15 Total WIF = Warehouse Infrastructure Fund. Note: For WIF 2013–14, out of a corpus of ₹5,000 crore, ₹519 crore was refunded to commercial banks. 72  ` Financing Rural Infrastructure for Sustainable Development Figure 5.9: Region-wise performance of WIF as on 31 March 2024 North Central No. of projects No. of projects Sanctioned 226 Sanctioned 640 Share (%) 2.8 Share (%) 7.8 Capacity created Capacity created '000 tonne 3,563.6 '000 tonne 203 Share (%) 35.8 Share (%) 2 W est North-East No. of projects No. of projects Sanctioned 220 Sanctioned 1,780 Share (%) 2.7 Share (%) 21.8 Capacity created Capacity created '000 tonne 62.2 '000 tonne 655.5 Share (%) 0.6 Share (%) 6.6 South No. of projects East Sanctioned 4,462 No. of projects Share (%) 54.7 Sanctioned 811 Capacity created Share (%) 9.9 '000 tonne 3,777.7 Capacity created Share (%) 37.9 '000 tonne 1,335 Share (%) 13.4 Multi-state projects No. of projects Sanctioned 22 Share (%) 0.3 Total No. of projects Capacity created Capacity created Sanctioned 8,161 '000 tonne 9,961 '000 tonne 364 Share (%) 100 Share (%) 100 Share (%) 3.7 WIF = Warehouse Infrastructure Fund. Figure 5.10: Output under WIF as on 31 March 2024 8,161 storage structures (6,243 completed) Online trading platform projects of APLMC 99.6 lakh MT storage capacity created Geotagging of 1.1 lakh storage structuresa Integrated value-chain project for fruits and vegetables Web-based agri-storage information system Modern, scientific, and earthquake-resistant warehouses Users to locate warehouse within a 50-km radius in the NER on Kisan Bhandar appb NABARD-funded initiatives to improve storage infrastructure a These storage structures have been geotagged and linked to a centralised database which can be ported with other platforms like e-NAM to create an integrated portal. b The app is being further developed to help farmers know the availability of the space in the agri-storage infrastructure, improve booking and payment facilities, and integration with other website/apps such as payment gateways, bank branch location, etc. APLMC = Agricultural Produce and Livestock Market Committee, e-NAM = e-National Agriculture Market, km = kilometre, MT = metric tonne, NER = North-Eastern Region, WIF = Warehouse Infrastructure Fund. 73  Annual Report 2023–2­4 5.6.2 Food Processing Fund6 India’s food processing sector is one of the largest in the world with a projected output of $535 billion by FY2026.7 The development of the food processing industry is essential for enhancing food security, reducing post-harvest losses, generating employment, stimulating economic growth, and meeting the evolving needs of consumers in both domestic and international markets. NABARD’s Food Processing Fund (FPF) has been instrumental in mitigating food wastage, broadening value addition, and establishing connections between farmers and consumers. NABARD has committed ₹1,191.6 crore as financial assistance up to FY2024 for projects spanning 17 states, including NER states like Assam, Manipur, and Meghalaya. Figure 5.11: NABARD-supported food processing infrastructure as on 31 March 2024 Projects Output >> Outcomes >> Impact (expected) 2.5 lakh MT of dry warehouses capacity 14 mega food 9 agro-processing 58,500 MT aggregate capacity of silos parks in 12 states; clusters in 3 states; 97,610 MT cold storage capacity 7 operational 1 nearly complete 13,750 MT freezer capacity 11.4 MT per hour IQF capacity 15 food processing 3 industrial 142.5 MT per hour capacity to sort and grade fruits and vegetables units in 7 states; food parks 3 complete in Tamil Nadu 1,895 MT controlled ripening capacity 39.1 MT per hour capacity to extract and pack fruit pulp aseptically IQF = individually quick freezing, MT = metric tonne. Showcase 5.4: Unveiling a mega food park in Himachal Pradesh Project: Cremica Mega Food Park Implementing agency: Cremica Food Park Pvt Ltd Term loan sanctioned: ₹40.2 crore Location: Haroli, Una district, Himachal Pradesh. Progress The mega food park has an area of 52 acres, of which 23.8 acres is leasable area. Entire land is already under possession of the implementing agency and is notified for industrial use. 74  ` Financing Rural Infrastructure for Sustainable Development The following infrastructure has been completed in the core processing centre: ◊ Frozen cold store (four stores of 150 MT capacity each) ◊ Warehouse raw material (3,000 square metre) ◊ Sewage treatment plant (1.2 million litre per day) The construction of a primary processing centre in Solan, Himachal Pradesh is complete. Following independent units have set up their manufacturing facility in the food park, which are operational: NEC Retroflex, Trustable Food India Pvt Ltd, Una Miricle Food, and Nijjer Foxtale Con. Output >> Outcomes >> Impact Due to sale/lease of plots, the food park is reporting profits from its own operations. The entrepreneurs are optimistic that the Cremica Mega Food Park will be a harbinger of progress for the food processing industry of Himachal Pradesh. The Cremica Mega Food Park will potentially maximise value addition, minimise wastage, increase farmer’s income, and create employment opportunities to 8,500 people, particularly in rural sector. The mega food park links agricultural produce (potato, tomato, fruits, and meat) to the market by bringing together farmers, processors, and retailers to ensure maximising value addition and food processing. 5.6.3 New initiatives during FY2024 in post-harvest infrastructure NABARD’s senior officials deputed to the Working Group constituted by the Warehousing Development and Regulatory Authority (WDRA) have provided technical assistance in developing a digital gateway platform for promotion of e-NWR-based pledge financing for the benefit of small and marginal farmers and traders. NABARD has initiated the process of developing the Dynamic Kisan Bhandar App and associated web-based portal for facilitating access of small and marginal farmers to geotagged storage spaces, thereby reducing post-harvest losses. NABARD Consultancy Services has been brought in as the consultancy firm to develop the mobile application. 5.7 OTHER INFRASTRUCTURE INITIATIVES 5.7.1 Dairy Processing and Infrastructure Development Fund8 The Dynamic Kisan Bhandar App and portal will enable The Dairy Processing and Infrastructure Development Fund (DIDF) was vested with NABARD small and marginal in FY2018 for the creation and modernisation of milk processing facilities and development farmers to access of other dairy-related infrastructure, with initial corpus of ₹8,004 crore and implementation geotagged storage period up to FY2023. spaces. 75  Annual Report 2023–2­4 Figure 5.12: Performance of DIDF as on 31 March 2024 32 projects in 12 states Milk processing capacity: 7.4 MLPD sanctioned to NDDB and NCDC Milk powder processing capacity: 265 MTPD Loan: 3,015.6 crore Bulk milk cooler capacity: 0.3 MLPD Target investment: 4,465.5 crore Value-added product plants Disbursement: 2,260.9 crore capacity: 1.4 MLPD DIDF = Dairy Processing and Infrastructure Development Fund, MLPD = million litres per day, MTPD = metric tonnes per day, NCDC = National Cooperative Development Corporation, NDDB = National Dairy Development Board. 5.7.2 Fisheries and Aquaculture Infrastructure Development Fund9 As per the Union Budget FY2019, the Fisheries and Aquaculture Infrastructure Development Fund (FIDF) was established (with NABARD as one of the nodal loaning entities) with a total corpus of ₹7,522.5 crore, spanning a lending period of 5 years from FY2019 to FY2023. The scheme has since been extended till 31 March 2026. Figure 5.13: Performance of FIDF as on 31 March 2024 Cumulative (till 31 March 2024) During FY2024 No. of projects: 82 Disbursed: 289.2 crore Sanctioned: 3,248.3 crore States: Tamil Nadu, Goa, Gujarat, West Disbursed: 880.6 crore Bengal, Kerala, and Himachal Pradesh. Impact (expected) Generation of employment opportunities to sea-going fisherfolk and people in shore-based establishments Facilitation of distribution and marketing of fish and crustacean products Tripartite Memoranda of Agreement with 12 state governments/Union Territories— Tamil Nadu, West Bengal, Andhra Pradesh, Gujarat, Karnataka, Kerala, Maharashtra, Goa, Odisha, Himachal Pradesh, Jammu and Kashmir, and Haryana. FIDF = Fisheries and Aquaculture Infrastructure Development Fund. 76  ` Financing Rural Infrastructure for Sustainable Development Showcase 5.5: Construction of fishing harbour at Tharangambadi in Mayiladuthurai District, Tamil Nadu Project: Construction of fishing harbour Location: Tharangambadi in Mayiladuthurai district, Tamil Nadu Funding Project outlay: ₹120 crore A term loan of ₹108 crore availed by the Government of Tamil Nadu from NABARD in February 2020. Challenges addressed Fishing is the primary source of livelihood for 10 coastal villages near Tharangambadi in Mayiladuthurai district. The fishing community suffered severe losses during natural disasters, particularly during the 2004 Indian Ocean Tsunami and 2018 Gaja cyclone. The fisherfolk had been experiencing difficulties in berthing their boats due to the non-availability of infrastructure. Tharangambadi fishing harbour site Intervention The fishing harbour completed in May 2023 is designed to facilitate the berthing of 800 fibre boats and 225 mechanised boats. Other infrastructure facilities include breakwaters structures on both the northern and southern ends of the harbour for boats to enter and exit, slipway, a fish auctioning yard, a fishing net mending shed, an overhead water tank, freshwater sump, vehicle parking area, public toilets, administrative and security buildings, etc. Output>>Outcomes>>Impact (expected) Fisherfolk from Chinnamedu, Vellakoil, Chinnangudi, Kuttiyandiyur, Thazhampettai, Pudupettai, Chandrapadi, Perumalpettai, and Chinnoorpettai can use the new harbour. The socioeconomic status of fisherfolk from these villages is expected to improve substantially. Additional employment is likely to be generated for ◊ 3,975 sea-going fisherfolk, ◊ 2,000 others employed in shore-based establishments, and ◊ those engaged in distribution and marketing of fish and crustacean products. The average annual landing of fish and crustacean of 29,025 tonnes is valued at ₹380.3 crore. Fisherfolk can go fishing throughout the year and fully exploit the under-utilised fishery resources. 77  Annual Report 2023–2­4 5.7.3 Rural Infrastructure Assistance to State Governments Innovative Under the initiative ‘Renewed Engagements with State Governments for Infrastructure Financing’, financing solutions Rural Infrastructure Assistance to State Governments is being revamped to realign with requirement are crucial for of state governments in the eastern region and aspirational districts in other states for creating building resilient infrastructure that supports rural livelihoods. and inclusive infrastructure systems. 5.8 WAY FORWARD The synergy between physical and digital infrastructure is essential for building resilient, efficient, and inclusive infrastructure systems that support sustainable development, foster innovation, and enhance quality of life for people around the world. NABARD is in the process of developing policy guidelines for working capital financing and development of exclusive short-term working capital financing products which can facilitate composite loan assistance to prospective entrepreneurs willing to set up food processing units outside the designated food parks. It is also exploring the possibility of collaboration with financial and banking institutions, viz. commercial banks, regional rural banks, and cooperative banks, for providing working capital finance assistance. The effectiveness of RIDF support may be enhanced by extending financial assistance to PPP projects and catalysing private sector investment in rural infrastructure development, contributing to sustainable economic growth, poverty reduction, and ensuring holistic development of rural areas. Innovations in infrastructure financing are essential for mobilising capital, unlocking investment opportunities, and accelerating infrastructure development. Such innovative financing solutions are bound to play a crucial role in addressing infrastructure gaps, promoting sustainable development, and building resilient and inclusive infrastructure systems for the future. NOTES 1. https://www.nabard.org/content1.aspx?id=573&catid=8&mid=8. 2. https://www.nabard.org/content1.aspx?id=655&catid=8&mid=8. 3. https://www.nabard.org/content1.aspx?id=1720&catid=8&mid=8. 4. https://www.nabard.org/content1.aspx?id=2800&catid=8&mid=8. 5. https://www.nabard.org/content1.aspx?id=571&catid=8&mid=8. 6. https://www.nabard.org/content.aspx?id=570. 7. India’s food processing sector poised to reach $535 billion by 2025-26, Economic Times, 7 April 2024. https://economictimes.indiatimes.com/news/india/indias-food-processing-sector-poised-to-reach-535- billion-by-2025-26/articleshow/109102067.cms?from=mdr 8. https://dahd.nic.in/schemes/programmes/didf. 9. https://www.fidf.in/ 78