NABARD's Performance Snapshot 2023-24 PDF

For Internal Use only  For Internal Use only Central Warehousing Publication Unique Code: I.HO.CPD/25/01 The cover page has been generated using AI tools. It portrays the harmonious blend of traditional farming practices with mo...

For Internal Use only  For Internal Use only Central Warehousing Publication Unique Code: I.HO.CPD/25/01 The cover page has been generated using AI tools. It portrays the harmonious blend of traditional farming practices with modern technology. It highlights the use of data-driven agricultural management, symbolized by a tablet displaying charts and graphs. The futuristic screens in the background suggest advanced monitoring and analysis of farm productivity, indicating innovation in farming practices.  For Internal Use only INDEX Sr. No. Particulars Page No. Snapshot of NABARD’s Performance - 2023-24 1 I Financial Functions of NABARD 1 Refinance Support 2-10 2 Infrastructure Support 11-14 3 Other Business Initiatives 15-19 4 Storage and Marketing infrastructure 20-25 II Developmental Functions 1 Farm Sector Development 26-32 2 Off-farm Sector Development 33-35 3 Micro-Credit Innovations 36-40 4 Financial Inclusion and use of Banking Technology 41-42 5 Institutional Development 43-48 6 Supervisory Role 49-50 7 Climate Action & Sustainability 51-53 III Internal Service Operations 1 Corporate Planning 54-59 2 Subsidiary and Strategic Investments 60 3 Risk Management 61-64 4 Finance 65 5 Accounts 66-67 6 IT infrastructure 68-70 7 Premises and Procurement 71-72 8 Inspection 73 9 HR related Development 74-75  For Internal Use only 10 Rajbhasha Prabhag 76-79 11 Research and Development in NABARD 78-82 12 Strategic Planning and Product Innovation 83-86 13 Data Management Analytics and Business Intelligence 87 14 Corporate Communication 88-90 IV NABARD Subsidiaries 1 NABCONS 91-92 2 NABFINS 93 3 NABFOUNDATION 94-95 4 NABKISAN 96-97 5 NABSAMRUDDHI 98-99 6 NABSANRAKSHAN 100-101 7 NABVENTURES 102  For Internal Use only Snapshot of NABARD’s Performance - 2023-24 The National Bank for Agriculture and Rural Development Act, 1981 provided for establishment of a development bank to be known as the National Bank for Agriculture and Rural Development (National Bank) for providing and regulating credit as well as other facilities for promotion and development of agriculture, micro enterprises, small enterprises and medium enterprises, cottage and village industries, handlooms, handicrafts and other rural crafts and other allied economic activities in rural areas with a view to promoting integrated rural development and securing prosperity of rural areas. NABARD with its Head Office at Mumbai has a pan-India presence with 31 Regional Offices, and 479 District Development Managers (DDMs) engaged in rural development. NABARD’s Training Establishments located at Lucknow, Kolkata and Mangaluru, cater to the capacity building requirements of rural financial institutions of the country, besides its own staff. As an apex development financial institution of the country, NABARD’s initiatives are aimed at building an empowered and financially inclusive rural India through specific goal oriented departments which can be broadly categorised as: Financial, Developmental and Supervision, touching almost every aspect of rural economy. From providing refinance support to building rural infrastructure, from preparing district credit plans to guiding and motivating the banking industry in achieving the targets under these plans, from supervising Cooperative Banks and Regional Rural Banks (RRBs) to helping them develop sound banking practices and on-boarding them to the CBS platform, from designing new development schemes to implementation of GoI’s schemes, from training handicraft artisans to providing them a marketing platform for marketing of products and empowering women to digital financial inclusion, NABARD has touched lives of millions. A Business Target of ₹4.48 lakh crore with Balance Sheet of ₹9.04 lakh crore was approved by the Board for the F.Y. 2023-24. With concerted and collective efforts put in by every NABARDian, NABARD’s balance sheet size touched the figure of ₹9 lakh crore, registering YoY growth of 13.6% during 2023-24. The hard work and commitment shown by HoDs, RO- In-Charges and all staff members helped NABARD to achieve business level (disbursements under loan products) of ₹4.36 lakh crore, besides achievement under developmental programmes. This business achievement comprised of ₹3.16 lakh crore under refinance, ₹73,879 crore under different products of BID, ₹46,041 crore under products of SPD and ₹474 crore under DSM. Going by the past performance, a Business Budget of ₹5.31 lakh crore has been approved by the Board for 2024-25. With continued momentum, greater zeal and enthusiasm NABARD is expected to touch balance sheet figure of ₹10 lakh crore during the FY 2024-25. The document ‘Snapshot of NABARD’s Performance - 2023-24’ is an attempt to incorporate all the activities undertaken by HO Departments during the year 2023-24. The document is divided into four parts viz., financial functions of NABARD, Developmental functions, Internal Service Operations and NABARD Subsidiaries. 1  For Internal Use only I. Financial Functions 1. Refinance Support Ensuring adequate flow of formal credit to agriculture sector for production & marketing activities, and capital formation has been the principal focus of NABARD. NABARD through refinance schemes supports the resources of banks/ FIs. Over the years the concessional refinance extended by NABARD, with support of GoI & RBI, under STCRCF, STRRBF and LTRCF has resulted not only in augmentation of credit, both for agriculture and allied activities, but has also made credit at the ground level affordable. Department of Refinance maintained the momentum like previous financial year and achieved 24% and 15% growth in Long Term and Short-term refinance respectively during 2023-24. Total ST refinance reached an all-time high disbursement of ₹1,83,153 crore surpassing the target of ₹1,51,641 crore. The disbursement under LT refinance has been moderately lower than the target of ₹1,74,690 crore and reached at ₹ 1,32,487 crore during 2023-24. This could be achieved in spite of non-availability of SLF 3 from RBI as envisioned in the Business Budget. 1. Refinance performance during 2023-24 Refinance (₹crore) Sl. Particulars No. 2022-23 2023-24 Ach. Target Ach. % ach. 1 Total LT Refinance 1,07,014.74 1,74,690.00 1,32,486.90 76 (ii) Out of 1 LTRCF** 14,875.07 25,000.00 15,154.22 61 Total ST Refinance 2 1,58,905.25 1,51,641.00 1,83,152.52 121 (i+ii+iii+iv) (i) ST(SAO)* 64,224.20 75,000.00 65,675.67 88 (ii) Additional ST(SAO) 65,564.60 57,443.00 79,463.31 138 ST(Others), including (iii) 29,076.55 19,148.00 37,933.75 198 Weavers (iv) SFB 40.00 50.00 79.79 160 Total ST and LT 3 2,65,920.09 3,26,331.00 3,15,639.42 97 Refinance (1 +2) *As against Board approved target of ₹75,000 crore, RBI released ₹65,675.67crore ** As against Board approved target of ₹25,000 crore, RBI released ₹15,154.22crore 2  For Internal Use only Trends in Refinance The total refinance including the ST and LT in the year 2019-20 which was ₹1,78,562.33 crore increased to ₹3,15,639.44 crore in the year 2023-24, with a steady average growth of 16%. a) LT Refinance NABARD’s long-term refinance lays emphasis on investment credit which leads to capital formation through asset creation. Capital formation in agriculture is critical to increase agricultural production and productivity, protects farmers from uncertainty due to climatic changes and provides them sustainable flow of income. In order to give a boost to the investment credit in agriculture, Government of India set up ‘Long Term Rural Credit Fund’ (LTRCF) with NABARD in 2015, created out of the shortfall in priority sector lending of Scheduled Commercial Banks, for providing long term refinance support to Cooperative Banks and RRBs at concessional rate, against their term lending for agricultural activities. LTRCF plays a vital role in providing long term credit to small and marginal farmers who account for 86% of total number of landholdings. The details of LT refinance disbursed during the last 5 years are as under: (₹ crore) Year LT Refinance Out of (‘a’), amount % of LTRCF disbursed (a) disbursed under LTRCF disbursement to LT refinance 2019-20 78,180 14,929 19 2020-21 92,786 14,881 16 2021-22 1,16,102 15,190 13 2022-23 1,07,015 14,875 14 2023-24 1,32,487 15,154 11 The CAGR of LT Refinance over the past 5 years was 11.13% and the refinance amount increased from ₹78,180 crore in 2019-20 to ₹1,32,487 crore in 2023-24. During the year the increase has been a stupendous 24% over the previous year. Refinance Trend for the last 5 years (₹ crore) 200000.00 183153.00 152135.96 158905.30 150000.00 130964.16 132487.00 116135.55 107015.00 100382.10 92786.22 100000.00 78180.23 50000.00 0.00 2019-20 2020-21 2021-22 2022-23 2023-24 Total Short Term Refinance LT Refinance -Total 3  For Internal Use only (i) Agency wise break up The share of Commercial Banks in total refinance disbursement has been 67%, followed by StCBs and RRBs share of 13% and 10%, respectively. Share of NABARD Subsidiaries and NBFCs together was 7% and that of SCARDBs was 2%. The disbursement to NBFCs, including NBFC - mFIs, has increased from ₹ 2,080 crore to ₹7000 crore, an increase of ₹4,920 crore. (₹crore) 2023-24 2022-23 Agency % % Target Disb. Target Disb. Share Share Commercial 111705.00 88378.15 67 75,000 74,928.76 70.0 Banks RRBs 22006.00 13460.61 10 18,000 11,825.56 11.1 StCBs 19594.00 17113.97 13 12,500 12,955.13 12.1 SCARDBs 3024.00 2100.65 2 3,000 2,284.77 2.1 NabSamruddhi 1019.61 555 578.87 0.5 NABKISAN 4500.00 1479.18 3 1,350 1,192.14 1.1 NABFINS 1934.75 1,225 1,169.51 1.1 NBFC including 13861.00 7000.00 5 11,870 2,080.00 1.9 NBFC-mFI) State Govt. 0.00 0.00 0 0 - - Total 1,74,690.00 1,32,486.90 100 1,23,500 1,07,014.74 100 (ii) State wise Analysis: State wise Refinance disbursement Odisha MADHYA PRADESH North Eastern states 1% 3% 2% TAMIL NADU Total Punjab 3% 13% WEST BENGAL 4% HARYANA 4% MAHARASHTRA Kerala 4% 13% UTTAR PRADESH 6% TELANGANA 6% Other states 10% RAJASTHAN 6% Gujarat 9% ANDHRA PRADESH 7% KARNATAKA 9% 4  For Internal Use only Tamil Nadu topped the year with refinance disbursement of ₹17,133.12 crore followed by Maharashtra with disbursement of ₹16,761.25 crore during the year. Karnataka and Gujarat had percentage share of 9%, Andhra Pradesh, Rajasthan, Telangana and Uttar Pradesh each had percentage share of 7%. The top 14 states contributed 89% of the total refinance disbursement. Northeastern States’ share was mere 1%. Total share of other 10 states, excluding the Northeastern States was 10%. The refinance disbursement to NABARD Subsidiaries was ₹4,433.54 crore and to NBFC/mFIs was ₹7,000 crore with share of 3% and 5%, respectively during the year. Tamil Nadu, Gujarat, and Maharashtra were the top three states recording growth over last year’s performance in terms of amount with ₹9,605.27 crore, ₹4,146.72 crore and ₹3,889.74 crore disbursement, respectively. West Bengal, Madhya Pradesh and Bihar were the other important states having significant reduction in refinance during the year over the last year with ₹3,950.67 crore, ₹ 1,373.48 crore and ₹1,283.56 crore decrease, respectively. b) ST Refinance NABARD provides short term refinance to StCBs, DCCBs, RRBs and SCBs for a period not exceeding 18 months for production, marketing, and procurement activities. The ST refinance products of NABARD are detailed below: (i) ST (SAO) - Short-Term refinance for Seasonal Agriculture Operations: Concessional refinance is available under this product to StCBs and RRBs through STCRC and STRRB funds, respectively, for production of crops. The allocation for these funds is received from RBI, out of the shortfall of Priority Sector Lending of Scheduled Commercial Banks. As against a proposed budget of ₹55,000 crore and ₹20,000 crore under STCRC and STRRB fund respectively during the year FY 2023-24, ₹50,517.76 crore and ₹15,157.91 crore, were received and the same was disbursed. Achievement under short term refinance during the last five years was as below: (₹crore) Product 2019-20 2020-21 2021-22 2022-23 2023-24 ST (SAO) 54,740 54,373 55,695 64,224 65,676 Additional ST (SAO) 37,672 41,358 67,818 65,564 79,463 ST (Others) 7,970 11,733 28,590 29,077 37,934 SFB 33 40 80 Total 1,00,382 1,07,464 1,52,136 1,58,905 1,83,153 ST refinance disbursements in 2023-24 reached an all-time high of ₹1,83,152.52 with overall growth of 15% against last year’s refinance of ₹1,58,905 crore. Additional ST (SAO) recorded increase of 21% while ST-SAO increased by 2%. The non-availability of additional funds from the Priority Sector shortfall (STCRC and STRRB) from RBI contributed to the low growth in ST-SAO disbursement. 5  For Internal Use only (ii) ST (Others) Short Term Credit limit in the form of a cash credit is available at commercial rate of interest for activities other than Seasonal Agricultural Operations i.e. marketing of crops, working capital loans to individuals, bonafide commercial or trade transactions, production and marketing activities of artisans and village/cottage/tiny sector industries, financing persons belonging to weaker sections and engaged in trade, business and service activities, including distribution of inputs for agriculture and allied activities. During 2023-24, refinance of ₹37,933.8 crore was disbursed under ST (Others), reporting a growth of 30% over refinance of ₹29,076.6 crore disbursed during 2022-23. (iii) Additional ST (SAO) Since 2016-17, Additional Short-Term refinance for (SAO) over and above normal ST (SAO) limit is provided to StCBs/RRBs through market borrowings, to tide over the liquidity constraints arising due to increased ground level demand for credit, low accretion of deposits and to offset the delay in receipt of STCRC/ STRRB funds allocated by RBI/GoI, etc. During the year 2023-24, ₹79,463.32 crore was disbursed under Additional ST (SAO) with the growth of 21% over previous year. c) Performance under Special Refinance Products (i) Special Refinance Schemes To address the issue of reverse migration and to give boost to the agriculture and rural sector in the post COVID era, NABARD introduced following three special refinance schemes under which refinance at concessional rate of interest was made available to eligible financial institutions. These schemes also continued in 2022-23. However, no fund has been received under this scheme for 2023-24. PACS as MSCs: Agriculture Infrastructure Fund (AIF) scheme of GoI under Atmanirbhar Bharat initiative, for establishing decentralized farm-gate Post Harvest Management infrastructure, includes PACS as one of the eligible institutions for availing bank loan and claiming interest subvention under the scheme. NABARD introduced Special Refinance Scheme to saturate all the potential PACS for conversion as Multi Service Centres, over a period of three years commencing from the year 2020-21. Under the scheme refinance is provided to StCBs at 3% for lending to PACS at 4%, to create quality infrastructure (capital assets) and increase their business portfolio in tune with needs of membe₹ Interest subvention of 3% is available for eligible purpose under AIF, resulting the effective rate of 1% to PACS. ₹621.84 crore has been disbursed during the year 2023-24 under the scheme SRS PACS as MSC. Scheme for promoting micro food processing activities - Scheme for promoting micro food processing activities in rural areas, with concessional rate of interest to give fillip to the recently launched “PM Scheme for Formalisation of Micro Food Processing Enterprises (PM -FME)” under Atmanirbhar Bharat Abhiyan by MoFPI, GoI. The disbursement during the current year is NIL (ii) Schematic Refinance for Water, Sanitation and Hygiene (WASH) To provide clean water, sanitation, and hygienic conditions to rural and semi urban areas and thereby to protect human health during outbreak of infectious disease, NABARD introduced 6  For Internal Use only a special refinance scheme on Water, Sanitation and Hygiene (WASH). Under the scheme the concessional refinance is available to banks and eligible financial institutions for WASH activities. Cumulative disbursement under the scheme till 31 March 2024 was ₹163.47 crore. (iii) ST Refinance to SFBs To further accelerate the financial inclusion by facilitating credit availability to farmers for agricultural operations, working capital loans in MSE sector, loans to retail trade, small businesses, professionals, and other unorganized sector, at affordable rate of interest, SFBs were included as an eligible institution to avail ST refinance. An amount of ₹79.79 crore has been extended to Shivalik SFB during 2023-24. (d) Other Initiatives during the year i) Pilot Project on World’s largest Grain Storage Plan Ministry of Cooperation, GoI has implemented Pilot Project for World’s Largest Grain Storage Plan in Cooperative Sector. NABARD has provided concessional refinance under Special Refinance Scheme for PACS as MSC to StCBs at 3% for lending to PACS at 4% (availing margin of 1% to be shared between DCCB and StCB). Interest subvention of 3% is also available for eligible purpose under AIF. The effective rate of interest to PACS under the facility is just 1%. Further MoU's have been signed among NBCC, NCDC, NCCF, NABARD, Ministry of Cooperation, GoI and Department of Consumer Affairs, GoI for implementation of project. Eleven Godowns under Pilot Project were inaugurated by Hon’ble PM on 24 February 2024 under World’s Largest Grain Storage Plan. Hon’ble PM also laid foundation stones for construction of 500 godowns under the said scheme. ii) Sugar Ethanol Interest Subvention scheme The Government of India introduced Sugar Ethanol Interest Subvention scheme in 2018-19 with a view to increase the production of ethanol and its supply under the 'Ethanol Blended Petrol (EBP).' NABARD is the nodal agency responsible for managing the Sugar Ethanol Interest Subvention Scheme of the Department of Food and Public Distribution (DFPD), Government of India. As per the instructions of GoI, NABARD has opened a CNA account with ICICI Bank to release interest subvention. As on 31 March 2024, ₹570.90 crore has been released to 65 banks through the CNA account. Interest Subvention of ₹492.26 crore (817 quarterly claims settled) has been provided to the sugar mills through Cooperative Banks, RRBs and SCBs, etc. during the year 2023-24. Cumulatively ₹930.90 crore (2170 quarterly claims settled) has been provided to the sugar mills. NABARD has launched a sugar ethanol portal to speed up the claims settlement process. Claims of ₹ 492.26 crore have been settled during the FY24 bringing the total interest subvention under the scheme to ₹930.90 crore. iii) Kisan Rin portal Kisan Rin Portal has been developed by MoA&FW, GoI for online submission of KCC-MISS claims by the banks and has gone live on 26 December 2022. Presently, data entry is going on in the portal. As on 31.03.2024, 297 Cooperative Banks and 43 RRBs have started data entry in the portal. NABARD is monitoring the progress in respect of Cooperative Banks and RRBs. To facilitate the banks, we have already conducted several online training programmes and 7  For Internal Use only weekly VCs for nodal officers of Cooperative Banks and RRBs with the technical support of technical team of MoA&FW. As on 31 March 2024, Cooperative Banks have completed 62% data and 36% claim entry on the portal and RRBs have completed 89% data entry and 26% claim entry on the portal. iv) NABPARIKSHAN APP DoR is undertaking verification of refinanced assets through a digital app “NABPARIKSHAN”. The application enables the ROs and DDMs to monitor and verify the assets for which refinance has been availed in terms of aspects such as eligibility of assets, purpose, borrower, NPA status, etc. As on 31 March 2024, 1,600 assets have been verified. v) Floating rate under Long Term (LT) – To cater to the demand from our client banks, floating rate product was introduced by Department of Refinance in 2023-24 under Long Term Refinance for Public Sector Commercial Banks, Private Sector Commercial Banks, Small Finance Banks, NBFCs and NBFC-mFIs. vi) KCC Saturation Phase As a part of the Prime Minister’s package for farmers, Hon’ble Finance Minister had announced to cover 2.5 crore farmers under the second phase of KCC Saturation Scheme to facilitate credit to the farm sector. Department of Animal Husbandry and Dairying and Department of Fisheries, GoI also decided to simultaneously launch a special drive to provide KCC to 1.5 crore dairy farmers belonging to milk unions and milk producing companies and 1 crore fish farme₹ Instructions were issued to Cooperative Banks for implementation of second phase of the saturation campaign with special focus on Animal Husbandry farme₹ As on 31 March 2024, 146.58 lakh KCC with credit limit of ₹1,41,639.91 crore (out of which 7.58 lakh KCCs with credit limit of ₹6,063.85 crore for dairy farmers and 0.53 lakh KCCs with credit limit ₹315.77 crore for fish farmers) were issued by Cooperative Banks and RRBs. e) Implementation of Capital Subsidy Schemes of the Government of India NABARD has been playing an important role in channelling subsidy to eligible banks under various credit-linked subsidy schemes of Government of India, primarily for agriculture projects and priority sector activities. Implementation of these schemes has also enabled enhancement of ground level credit (GLC) to agriculture and allied sector and priority sector activities. The following capital subsidy schemes are being implemented by NABARD: i) New Agriculture Marketing Infrastructure sub scheme of Integrated Scheme for Agricultural Marketing (ISAM) The Revised Agricultural Marketing Infrastructure sub scheme of ISAM was approved by the Ministry of Agriculture and Farmers’ Welfare (MoA&FW) for implementation w.e.f. 22 October 2018 for the period coterminous with the 14th Finance Commission i.e. up to 2019- 20. GoI had approved the continuation of the scheme till 31 March 2026. The scheme lays special focus on developing and upgrading of Gramin Haats as GrAMs through strengthening of infrastructure thereof, which may function as farmer-consumer market (retail market) and collection/aggregation points (spokes) with linkages to secondary market (hub) and on processing/exporting with participation of FPOs, other farmers’ groups and eligible private sector promote₹ Capital subsidy ranging from 25% to 33.33% of the capital cost for institutions eligible for refinance from NABARD or any other FI such as State Financial 8  For Internal Use only Corporations (SFCs) approved by DAC&FW is provided under the scheme. Claims of ₹ 915.42 crore have been settled during the FY24 bringing the total subsidy under the scheme to ₹1384.48 crore. ii) Agri Clinics and Agri Business Centres (ACABC) The Central Sector Scheme of Agri-Clinics and Agri-Business Centres was launched in April 2002 by Ministry of Agriculture, GoI with the objective of supplementing the efforts of public extension by facilitating qualified agricultural professionals to set up agri-ventures. GoI revised the guidelines with effect from 4 August 2010 by providing for only composite subsidy instead of capital subsidy and interest subsidy. Composite subsidy of 44% of the project cost for women, SC/ST & all categories of candidates from North East and Hill states and 36% of project cost for all other beneficiaries is provided under the scheme. During 2023-24 the scheme was in force. Claims of ₹11.42 crore have been settled during the FY24 bringing the total subsidy under the scheme to ₹146.89 crore. Performance under ACABC, New AMI Scheme and Old AMI Scheme Performance during 2023-24 (₹ Crore) Particulars ACABC New AMI Scheme Old AMI Scheme No. of Units 239 4679 -- Subsidy released (₹ crore) 11.42 915.42 -- Cumulative Performance as on 31 March 2024 No. of Units 3697 7498 42260 Subsidy released (₹ crore) 146.89 1384.48 4466.91 Cumulative performance as on 31 March 2024 Scientific storage capacity of 608.53 lakh MT involving 42260 units has been created under Rural Godown Scheme, Agri Marketing Infrastructure, Grading and Standardization Scheme and Agri Marketing Infrastructure Scheme (Old Scheme) involving subsidy of ₹4466.91 crore. Scientific storage capacity of 203.83 lakh MT involving 7498 units has been created under New AMI scheme, involving subsidy of ₹1384.48 crore. 3697 units have been assisted involving subsidy of ₹146.89 crore under Agri Clinics and Agri Business Centre Scheme. f). Interest Subvention released by NABARD under various GoI schemes NABARD implements crop loan interest subvention scheme of GoI for Cooperative Banks and RRBs, under which interest subvention of 1.5% is provided to banks for extending crop loans up to ₹3 lakh at a concessional interest rate of 7% per annum. The scheme also provides an incentive of 3% subvention to the farmers making prompt repayment of loans, thereby making credit available at an effective interest of 4% per annum. GoI has given its approval for continuation of Modified Interest Subvention Scheme for Short Term Loans for agriculture and allied activities availed through KCC during the Financial Year 2023-24. Besides loans for raising crops, the government extends similar subvention to loans against Negotiable Warehousing Receipts (NWRs) devised to avoid distress sale of produce by small and marginal farme₹ Interest subvention of 1.5% to banks and 3% to farmers towards prompt repayment incentive (PRI) is also extended on short-term loans up to ₹ 2 lakh to animal husbandry and fisheries 9  For Internal Use only farmers, provided the loans are extended by banks @ 7% per annum. In case of farmers possessing KCC for raising crops and involved in activities related to animal husbandry and/or fisheries, the interest subvention on short-term loan is available on an overall limit of ₹3 lakh per annum. NABARD has released an amount of ₹ 8297.17 crore under Interest Subvention Scheme for Short Term crop loan during the year 2023-24. NABARD also implements interest subvention scheme under DAY-NRLM, for Cooperative Banks and RRBs. During the year 2023-24, NABARD has released ₹1,036.15 crore to Women SHGs through Cooperative Banks and RRBs under this scheme with cumulative disbursement of ₹5638.86 crore. NABARD is the nodal agency for implementing Scheme for extending Soft Loan to Sugar Mills to facilitate payment of cane dues for sugar season 2018-19. Interest Subvention of ₹294.63 crore (992 quarterly claims settled) has been released to the sugar mills through Cooperative Banks, RRBs and SCBs during the year 2023-24. 10  For Internal Use only 2. Infrastructure Support Infrastructure is the backbone of economic growth for any nation since it provides the basic physical and organisational structures and facilities needed for the operation of any economy. While productivity enhancement is the key driver to economic growth, good infrastructure, markets that are functioning well, appropriate institutions, and access to technology are the determinants of productivity levels. The Government of India (GoI) and NABARD have initiated several programmes over the years to enhance rural infrastructure facilities in the country. Some of the major initiatives in this regard are as under: 1. Rural Infrastructure Development Fund (RIDF) In the backdrop of declining public investment in agriculture and rural infrastructure, RIDF was instituted in NABARD during 1995-96 with an initial corpus of ₹2,000 crore with the main objective of providing loans to State Governments for completing ongoing rural infrastructure projects. Resources to the fund are contributed by Commercial Banks, in a proportion indicated by RBI, with respect to banks’ shortfall in priority sector lending as a last mile approach for unfinished irrigation, food production, and watershed management. Today, it covers as many as 39 activities, classified under three broad sector, viz., (i) Agriculture and Related sector (ii) Social Sector and (iii) Rural Connectivity. Expanding Corpus RIDF corpus has grown from an initial corpus of ₹2,000 crore in 1995–96 (Tranche I) to ₹40,474.55 crore in 2023-24 (Tranche XXIX). The cumulative allocations during these years has reached to ₹4,98,411 crore (including Bharat Nirman). Tranche Wise Corpus (₹ Crore) 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 VI XXIII II III IV IX XI XII XV XIX XIII XIV XX XXI XXII XXIV XXV XXIX I V X XVIII (incl WH) XVI XVII (incl WH) XXVI XXVII VII XXVIII VIII 11  For Internal Use only Highlights for 2023-24 i. Sanctions under Tranche XXIX As against corpus of ₹40,474.55 crore, total sanctions aggregated to ₹50,116 crore (i.e. 124% of the allocation), under Tranche XXIX as on 31 March 2024. The details of sectoral share are as under: (₹crore) Sector Sanction (2023-24) Share (%) Agriculture Related (including irrigation) 20,750 41 Rural Connectivity 16,742 33 Social Sector 12,624 26 Total 50,116 100 ii. Disbursements The RIDF disbursements aggregated to ₹42,563.92 crore as on 31 March 2024, achieving 123% of the target of ₹34,528 crore. iii. Cumulative Sanctions As against a cumulative corpus of ₹4,98,411 crore, a cumulative loan of ₹5,51,724 crore (including ₹18,500 crore under Bharat Nirman) as on 31 March 2024 has been sanctioned to various State Governments since commencement of RIDF under Tranche I to XXIX. As many as 7.77 lakh projects have been sanctioned under Agriculture and Related (including Irrigation), Rural Connectivity and Social Sector. Purpose-wise sanctions under RIDF (%) 21 30 Irrigation Agri-related Projects Bridges Roads 26 Social Sector Schemes 13 10 The sector-wise analysis of aggregate sanctions under RIDF I to XXIX reveals that Agriculture and Related Sector (including irrigation) accounted for 43% of the total sanctions, followed by 12  For Internal Use only Rural Connectivity (36%) and Social Sector (21%). Irrigation Sector alone accounted for 30% of cumulative sanctions. iv. Cumulative Disbursements Since inception, an aggregate amount ₹4,37,441 crore has been disbursed, forming 79.29% of aggregate sanction of ₹5,51,724 crore as on 31 March 2024. The total loan outstanding under RIDF as on 31 March 2024 stood at ₹1.69 lakh crore. v. Anticipated Benefits under RIDF The RIDF assistance to various State Governments, as on 31 March 2024, is estimated to create/restore irrigation potential of 422 lakh ha, 5.62 lakh km of rural roads and 14.08 lakh meters of bridges and also generate non-recurring employment of 3096.23 crore man-days. vi. Initiatives On 11th October 2023, in association with Department of Financial Services (DFS), Ministry of Finance (MoF), Government of India (GoI), a review meeting on Rural Infrastructure Development Fund (RIDF) was conducted with all senior finance department officials of the State Governments and as an outcome, a committee has been set up, under the chairmanship of Additional Secretary, DFS, for suggesting enhancements in the operation of RIDF. The final report of the committee will be submitted soon. During the year, as part of providing complete digitization for the operation of RIDF, facilitations in the portal were enhanced with dedicated modules for disbursements. Modules for sanction is under finalisation. A dashboard for the use of State government officials was also rolled out during this year. 2. Long Term Irrigation Fund (LTIF) i. Background Long-Term Irrigation Fund (LTIF) was announced in the Union Budget 2016–17 for fast tracking 99 identified medium and major irrigation projects, spread across 18 states in mission mode by December 2019. Subsequently, GoI also approved funding for four more projects under During 2016-2021, NABARD has provided loan towards Central share to National Water Development Agency (NWDA), SPV of Govt. of India, as well as State share to willing State Governments with a tenor of 15 yea₹ So far 13 states have executed the MoA to avail funding assistance from NABARD. Further, the GoI has approved continuation of financial assistance under LTIF upto 31 March 2026 to willing State Governments for ongoing projects. From 2021-22 onwards, the funding arrangement is continued towards meeting State share only for the 60 ongoing AIBP projects and 85 ongoing CADWM major/medium irrigation projects (out of the 99 irrigation projects) with GoI interest subvention up to 2% only. Funding requirements for central share will be met through budgetary resources of GoI. ii. Financial progress During 2023-24, loan amount of ₹502.34 crore was sanctioned to Govt. of Jharkhand and an aggregate loan amount of ₹2605.14 crore was released under LTIF in r/o Govt. of Assam, Govt. of Maharashtra, Govt. of Madhya Pradesh, Govt. of Odisha, Government of Jharkhand and Govt. of Rajasthan towards State Share. The cumulative loan sanctioned as on 31 March 2024 13  For Internal Use only is ₹85,790.78 crore; of which Central Share stands at ₹46,495.93 crore and State Share at ₹39294.85 crore. Against this, cumulative amount released as on 31 March 2024 was ₹61350.92 crore comprising Central share of ₹26,500.60 crore and State share of ₹34850.32 crore. 3. Micro Irrigation Fund (MIF) i. Background MIF with an initial corpus of ₹5000 crore was operationalized in NABARD in 2019-20 to facilitate efforts of State Governments in mobilizing additional resources for expanding coverage under micro irrigation and incentivizing its adoption beyond provisions of Pradhan Mantri Krishi Sinchayee Yojana-Per Drop More Crop. Tri-partite Memorandum of Agreement (MoA) under MIF has since been executed amongst MoA&FW, GoI; NABARD and State Govt. in respect of 10 States, viz., Andhra Pradesh, Gujarat, Haryana, Maharashtra, Punjab, Tamil Nadu, Rajasthan, Uttarakhand, Karnataka and West Bengal. For facilitating drawl of funds under ₹500 crore under MIF, the State Govts. Of Gujarat, Haryana, Maharashtra, Punjab, Rajasthan, Tamil Nadu, Karnataka and Uttarakhand have signed the Amendatory Agreement with the MoA&FW and NABARD. The MIF funding arrangement for the initial corpus is in operation upto 31 July 2024 till a decision on the RKVY scheme is taken by the cabinet, whichever is earlier, with the existing terms and conditions. As announced in Union Budget 2021-22, augmentation of MIF corpus by another ₹5000 crore and its implementation upto FY 2025-26 is under consideration of GoI. ii. Financial progress During 2023-24, ₹290.33 crore loan has been sanctioned to Govt. of Karnataka and an aggregate loan amount of ₹871.78 crore was released under MIF in r/o Govt. of Haryana, Govt. of Gujarat, Govt. of Punjab, Govt. of Uttarakhand, Govt. of Karnataka and Govt. of Rajasthan. The cumulative loan sanctioned stood at ₹4724.74 crore, against which ₹3387.80 crore has been released as on 31 March 2024. iii. Physical Progress The sanctions made by NABARD till date under MIF envisages expansion of micro irrigation coverage by an area of 19.10 lakh ha. Out of this, an area of 13.89 lakh ha has been covered by the States as on 31 December 2023 (Source: MoA&FW, GoI) 14  For Internal Use only 3. Other Business Initiatives Operations under other business products scaled new heights during the FY 2023-24 and posted spectacular performance in sanction and disbursements, despite the challenges being faced due to rising interest rates and GoI restrictions on State Government borrowings. The sanctions under all the products reached a level of ₹75,451 crore registering a y-o-y growth of about 10%, and the disbursements during the year stood at all time high of ₹73,879 crore with staggering y-o-y growth of about 30%. The loan outstanding under BID products increased to ₹75,022 crore at the end of FY 2023-24 as against ₹68,676 crore (as at end of FY 2022-23), registering y-o-y growth of about 10% with net addition of more than ₹13750 crore. The total outstanding from new business products, as percentage to the total loan book of NABARD formed an impressive 9.51%. The gross interest income from BID products during FY 23-24 was ₹4,824 crore, which was 28 % higher than previous financial year. The outstanding position for last 5 years is given below: (₹crore) Financial Year March March March March March 20 21 22 23 24 Total loan book size 4,81,515 6,03,000 6,80,272 7,33,187 7,97,176 Of which, new business 27,910 43,754 56,747 61,262 75,801 products % of new business products 5.80 7.26 8.34 8.36 9.51 O/s to the total loan book Performance under various new business initiatives products is furnished in following paragraphs. 1. NABARD Infrastructure Development Assistance (NIDA) NIDA was designed as an alternative line of credit to address this gap. The product is funded by NABARD on its own either through its cash flows or through market borrowings. The entities eligible for NIDA loan are State Governments, State Government owned entities/corporations, SPVs formed for raising off budget resources, etc. NIDA was designed for on budget and off budget borrowings by the State Governments and State-owned organisations for creation of infrastructure. In FY 2023-24, total sanctions under NIDA stood at ₹9,934.40 crore, for 15 credit proposals, which included two new clients. The disbursement under NIDA for the FY 2023-24 was ₹7,303.96 crore. The performance under NIDA during last 5 years is represented in the following graph. 15  For Internal Use only Performance under NIDA during last 5 years (₹ crore) 35000 32404 30000 27890 25000 22768 23319 20000 17999 15000 11750 9934 10000 8125 7506713663297304 4382 3582 3727 5000 0 Sanction Disbursement Outstanding 2019-20 2020-21 2021-22 2022-23 2023-24 The 5-year CAGR of sanctions, disbursements and outstanding under NIDA was 6.17%, 23.91% and 28.84%, respectively. 2. Credit Facility to Federations Credit Facility to Federations (CFF) provides short-term credit support to State Government entities like agricultural marketing federations, civil supply corporations, dairy cooperatives, /milk unions or federations, etc., for procurement, processing and marketing of agricultural commodities, input supply, etc. In FY 2023-24, total sanctions under CFF stood at ₹38,700 crore, for 13 credit proposals, which included two new clients. The disbursements under CFF was ₹ 39,240.23 crore during FY 2023-24. The outstanding position as on 31 March 2024 was ₹20,583.03 crore against ₹17,355.21 crore as on 31 March 2023. The sanctions, disbursement and outstanding under CFF as on 31 March, during last 05 years are given in graph below. Performance under CFF during last 5 Years (₹ crore) 60000 50000 47853 46434 39240 40160 40607 38700 40000 37207 36436 31437 30000 25071 22315 20583 20000 20038 17355 12123 10000 0 2019-20 2020-21 2021-22 2022-23 2023-24 Sanction Disbursement Outstanding 16  For Internal Use only The major sector benefitted under CFF is food grain procurement under MSP operations, wherein the limits availed by procurement agencies (State Govt. Corporation/State Marketing Federations) are used for timely payment of remuneration price (MSP) to the farme₹ 3. Direct Refinance Assistance (DRA) to DCCBs for Short-Term Multipurpose The credit limit under this product is sanctioned to well-governed and financially strong StCBs and DCCBs, as per the latest inspection report of NABARD. The purpose of the loan covers, inter alia, working capital, repair and maintenance of farm equipment and other productive assets, storage/grading/packaging of produce, marketing activities, etc. The limit is in the nature of cash-credit, operative for one year from the date of sanction. The limit is also available for a period of three months to meet the specific requirements of banks. Sanction under DRA registered a significant increase of 25% i.e., from ₹21,435 crore in FY 2022-23 to ₹ 26,816 crore during FY 2023-24. The disbursements under DRA have increased by 48% from ₹18,179 crore during FY 2022-23 to ₹26,869 crore during FY 2023-24. The sanctions, disbursements and outstandings under DRA during last 05 years are given in following graph: Performance for last 5 years under DRA (₹ crore) 30000 26869 26816 25000 21435 18521 17574 18179 20504 20000 9200 15000 11890 13956 8932 10000 7373 9822 5000 4567 3026 0 2019-20 2020-21 2021-22 2022-23 2023-24 Sanction Disbursement Outstanding 4. Performance under Government of India schemes a. Dairy Processing and Infrastructure Development Fund In line with its announcement in the Union Budget 2017–18, Government of India created a Dairy Processing and Infrastructure Development Fund (DIDF) in NABARD, with a total corpus of ₹8,004 crore to be utilised over a period of five years (2018-19 to 2022-23). The objectives of the scheme are modernisation and infrastructure augmentation for milk processing and value addition, and to ensure optimum price realisation by the primary produce₹ Cumulatively 32 proposals amounting to ₹3015.60 have been sanctioned under the scheme. Sanctioned projects have created a liquid milk processing capacity of 7.39 million litres per day, 265 Metric tonne per day milk powder processing capacity and 3.4 Lakh litres per day Bulk Milk Coolers capacity. Apart from Liquid milk processing and Milk Powder processing capacity, 1.42 MLPD of value-added product plant has also been completed till date. Department of Animal Husbandry and Dairying (DAHD), GoI vide letter No.M- 02023/2/2017-CDD-Part (2) (E-15424) dated 27 October 2023 has requested NABARD to 17  For Internal Use only consider releasing pending loan instalments in the ongoing projects. Accordingly, an amount of ₹176.31 crore released to NDDB during FY 2023-24. Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 01 February 2024 has approved merger of DIDF with AHIDF and extension of AHIDF for another three years till 31 March 2026. Further, NABARD is included as loaning entity under the revamped AHIDF scheme. b. Fisheries and Aquaculture Infrastructure Development Fund In line with its announcement in the Union Budget 2018–19, Government of India created the Fisheries and Aquaculture Infrastructure Development Fund (FIDF) with a total corpus of ₹7,522.48 crore to be implemented over a period of five years (FY 2018-19 to 2022-23). NABARD will fund the public infrastructure components to the State Governments to the tune of about ₹2,600 crore for various facilities like fishing harbours, fish landing centres, modernized State fish seed farms, modern fish markets, disease diagnostic laboratories, aquatic quarantine facilities, etc. During the FY2023-24, total disbursements stood at ₹289.21 crore. CCEA in its meeting held on 08 February 2024 has accorded approval for extension of the scheme for another 03 years i.e., up to 31.03.2026. Now the scheme is open for fresh sanctions as well as disbursements. Further, an upper cap of 10% in respect of lending to the State Governments/ Union Territories has been approved. Under FIDF, NABARD is funding State Governments/ Union Territories only. Accordingly, ₹152.82 crore (10% of 1528.21 crore balance loan amount available under the scheme) is available for sanction by NABARD and disbursements in the sanctioned projects will be allowed as per phasing. Performance under DIDF and FIDF during last 5 years is given in the graph below. Performance under Government of India Schemes - DIDF and FIDF (₹ crore) 2500.00 1987.99 2000.00 1500.00 1083.55 1000.00 912.28 670.00 735.26 500.00 351.24 348 364.00 225.67 289.21 120.70 194 118.66 172 176.31 0.00 0.00 0.00 0.00 0.00 0.00 2019-20 2020-21 2021-22 2022-23 2023-24 DIDF Sanctions DIDF Disbursement FIDF Sanctions FIDF Disbursement 18  For Internal Use only 5. Rural Infrastructure Assistance to State Governments (RIAS) Rural Infrastructure Assistance to State Governments (RIAS) aims at providing financial assistance to State Governments in Eastern Region and aspirational districts in other states, for creating infrastructure that supports rural livelihoods. Sanctions and disbursements during FY 2023-24 were nil. Under the initiative “Renewed Engagements with State Governments for Infrastructure Financing”, RIAS is being revamped to realign with requirement of State Governments. 6. Overall BID performance: The performance under new business initiatives/ products is showcased in the following graph. Performance of under all BID products during last 5 years (₹ crore) 80000 75901 75451 73879 75801 71435 70000 64358 63047 61262 60000 56907 56747 50804 50000 68676 43754 39085 40000 27909 30000 20000 10000 0 Sanction Disbursement Outstanding 2019-20 2020-21 2021-22 2022-23 2023-24 Interest Income for last 5 years - All BID products (₹ crore) 6000.00 4,824.30 5000.00 3,760.50 4000.00 3,391.67 3000.00 2,491.31 1,917.48 2,076.12 2000.00 1000.00 0.00 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 19  For Internal Use only 4. Storage and Marketing Infrastructure NABARD administers two Funds viz. Warehousing Infrastructure Fund and Food Processing Fund (FPF) allocated by Government of India for supporting the creation of warehouse infrastructure for scientific storage of food grains in the country. At present, the following funds are administered by DSM: Warehousing Infrastructure Fund Food Processing Fund 1. Warehouse Infrastructure Fund (WIF) Government of India announced a dedicated Warehouse Infrastructure Fund (WIF) with a corpus of ₹5,000 crore in 2013–14. The WIF corpus was augmented with a further allocation of ₹5,000 crore in 2014–15. The fund was setup to support State Governments, State-owned agencies, and Corporates for creation of scientific warehouse capacity through financial support. Creation of Storage Infrastructure in APMCs was later included as an eligible activity for support under WIF. The Fund envisages financing State Governments, State Government Undertakings and Private Sector for establishing dry warehouses, cold storages, and cold chain infrastructure. As on date, the corpus under WIF is fully committed and a total of 8161 projects have been sanctioned across the country which envisage creation of a storage capacity of 13.74 million MT. In terms of capacity created, a total 9.96 million MT capacity of scientific storage has been created in the country through WIF. Milestones Achieved (31 March 2024) Total 9.96 million MT capacity operationalized consisting of varied storage structures, from a small 100 MT capacity farm gate warehouses of PACS, to the modern State-of-the- Art 50,000 MT SILOs meant for bulk storage. From Integrated Value Chain project for Fruits & Vegetables, to the on-line electronic trading platform of APMC projects are supported under WIF. Modern, scientific and earthquake resistant warehouses are constructed to ensure food security under the Targeted Public Distribution System(TPDS) in the difficult terrains of Northeast States. Region wise distribution of sanctions under WIF Southern and Western region accounts for major share of decentralized storage. Northern region, being the major procurement region, accounts for large sized storage structures whereas small sized storage structures at village level have been sanctioned in Gujarat, Odisha, and Tamil Nadu. (₹crore) Region No of No. of Capacity Cumulative Cumulative Loan Projects Projects Created Loan Loan Disbursed Sanctioned completed (in '000 Sanctioned Disbursed during MT) 2023-24 Southern 4,462 3,361 3,777.73 5,372.86 5,097.89 107.45 20  For Internal Use only Region No of No. of Capacity Cumulative Cumulative Loan Projects Projects Created Loan Loan Disbursed Sanctioned completed (in '000 Sanctioned Disbursed during MT) 2023-24 Western 1,780 1,703 655.47 402.71 476.11 0.43 Northern 226 190 3563.61 913.99 833.64 151.59 Central 640 41 203.01 341.81 241.21 33.90 Eastern 811 777 1335.00 1997.98 2051.58 34.77 North 220 149 62.17 295.26 39.12 Eastern 230.04 Multi 22 22 364 128 112.00 0 State Total 8,161 6,243 9,945.19 9,452.61 9,042.49 367.25 Cumulative No. of Projects Sanctioned and Completed 4462 3361 1780 1703 640 811 777 220 226 190 41 149 22 22 Southern Western Northern Central Eastern North Multi Eastern State No of Projects Sanctioned No. of Projects completed Region – wise projects sanctioned and completed. Region-wise Cumulative Sanctions and Disbursements (₹ crore) 5373 5098 1998 914 2052 403 342 476 834 241 295 230 128 112 Southern Western Northern Central Eastern North Multi Eastern State Cumulative Loan Sanctioned (₹. crore) Cumulative Loan Disbursed (₹. crore) 21  For Internal Use only Projects financed under WIF: Silos financed to Haryana State Co-operative Supply and Marketing Federation Limited (HAFED), Haryana Inside view of warehouse constructed by UP State Warehouse Corporation Cold Storage project constructed in Haryana State Industrial and Infrastructure Development Corporation (HSIIDC), Haryana 22  For Internal Use only Geo Tagging of Agri-storage Infrastructure (ASI) in the Country ASI’s geotagged on a static Google Map The food grain production in the country has been growing incrementally every year and our country has attained food grain surplus status. Scientific warehousing is an essential requirement to reduce the storage losses as also to support procurement operations. As on date, we do not have centralised data base on capacity of the scientific warehouses/cold storage etc. for assessing storage surplus/deficit status in the country. In order to remove this operational constraint, NABARD took the onus of creating a web based Agri Storage information system, which not only captures the details of the infrastructure but also assess the present capacity utilisation vis-à-vis. requirement along with the Geo-spatial coordinates with following broad objectives: To map the Agri storage assets and related infrastructure in the country and create a centralised database. To link warehouses to a central database To develop IT enabled services for the farmers, which will also help in integrating small farmer with the commodity value chain. To reduce post-harvest losses in agri and allied commodities. To develop a mobile APP (Farmers App.) for Farmers for navigating nearest warehouse in the vicinity of 50 km of their location. The Project for Geo Tagging of warehouses (dry & wet) was started as pilot in two States (Haryana and Tamil Nadu) and the work was taken up by NABCONS. Meanwhile, the Union Budget 2020 outlined a 16-point Action Plan for achieving the goal of “Doubling Farmers’ Income by 2022” and one among them was that NABARD will undertake an exercise to map and geo tag agri-warehousing, cold storage, refer van facilities. The all-India exercise was initiated in the month of November 2020 and the entire survey work was completed in the month of September 2021 with geotagging of 1,11,162 Agri-storage infrastructure having capacity of 223 million MT across the country. A digital Web portal i.e. NABARD Storage Infrastructure Information Management System (NABSIIMS) and mobile applications (KISAN BHANDAR) have been developed and further, integrating dynamic features in the app is under process. Android and IOS version of the app will be launched shortly. Digital Gateway (e-KISAN UPAJ NIDHI) : - e- Kisan Upaj Nidhi was launched on 04.03.2024 by Union Minister for Consumer Affairs, Food & Public Distribution, Commerce 23  For Internal Use only and Industry and Textiles, Shri Piyush Goyal in the presence of Shri Shaji K V, Chairman, NABARD and T. K. Manoj Kumar, Chairman, WDRA. e- Kisan Upaj Nidhi, is an online platform which helps farmers (especially SF/MF) and traders for obtaining post-harvest loans against electronic Negotiable Warehouse Receipts (e-NWRs) for the assayed stocks of agricultural produce kept in WDRA registered warehouses from various banks/ financial institutions through marking of lien on the e-NW₹ This digital gateway will reduce the turnaround time (TAT) for sanctioning pledge loans through seamless transfer of data. Farmer can upload their applications and eNWRs on the gateway and the various banks onboarded thereon, can provide a choice to the applicants in terms of rate of interest, loan amount, etc. The e- Kisan Upaj Nidhi is a collaborative effort of the Department of Food & Public Distribution (DFPD), WDRA, Department of Financial Services (DFS), National Bank for Agriculture and Rural Development (NABARD) & SBI. Achievement under Geo-tagging - Status as on 31 March 2024 Estimated Number of Stoarge Structures 0% 8% 4% Number of Storage Structures Geotagged 150000 100463 111162 100000 88% 50000 6772 6310 0 Dry Warehouse Cold Storage 1st Phase (Pilot) 2nd Phase (Pan India) Packhouse Others. Target & Achievement Percent share of Storage Structures 2. Food Processing Fund of GoI: Government of India instituted the Food Processing Fund (FPF) in NABARD during 2014–15, with a corpus of ₹2,000 crore, with the objective of providing affordable credit to public and private players for setting up of Designated Food Parks (DFPs) notified by the Ministry of Food Processing Industries (MoFPI), Government of India, and establishing food processing units therein. As on 31 March 2024, NABARD had sanctioned a term loan of ₹1,191.57 crore for 14 Mega Food Parks (MFPs), 03 Industrial Parks, 09 Agro Processing Clusters (APCs) and 15 Individual Food Processing Units. Cumulative disbursement is ₹768.77 crore. Capacity creation envisaged. An area of about 1,370.03 acres would be developed in 14 Mega Food Parks (MFP), 3 Industrial Parks and 9 Agro Processing Clusters (APC) projects which act as Central Processing Centres (CPCs). The 14 CPCs of MFP Projects would be supported by 45 Primary Processing Centres (PPCs) and several Collection Centres (CCs) to be established at suitable places in the catchment zone of the respective mega food parks. These centres will help in sourcing of agricultural 24  For Internal Use only produce directly from the farmers by the processing units to be established in the mega food parks, thereby creating a direct marketing access to the user industry. These projects when completed would result in providing diversified and much needed core and processing infrastructure, as indicated in the following graph: Area Developed: 1370.03 acre Pulping & Aseptic Packing: Dry warehouses 39.05 MT/hr 2,52,200 MT Ripening Cold Storage: Designated Food 97,610 MT Capacity: Parks Created with 1895.00 MT NABARD assistance Freezer: 11,350 Sorting & MT Grading: 142.50 MT/hr Silo: IQF: 58,500 MT 9.50 MT/hour ii. Milestones Achieved Under Food Processing Fund, term loan has been extended to all types of eligible activities viz.: Mega Food Parks, Industrial Parks, Agro Processing Clusters and Individual Units; and to different borrowing entities, viz. State Govt., State Govt. owned entities, SPVs, Federations, Companies, Partnership Firms and Limited Liability Partnerships. iii. Opportunities ahead Govt. of India has approved the Production Linked Incentive (PLI) scheme for 10 key sectors, including food processing sector, with a budgetary outlay of ₹10,900 crore spread over a period of 06 years (FY 2021-22 to FY 2026-27). This may create huge opportunities for investment in the sector by both public and private sector. Food Processing Units established in Designated Food Park may be able to avail benefit of such schemes. State owned entities like State Agricultural Marketing Boards/Directorates of resource rich States are coming up with proposals to set up Agro Processing Clusters (APC) across the districts. There is good opportunity to tie up with the State Government for supporting their infrastructure plans through finance for the APC or any other designated food park managed by the PSUs of State Governments. Financing of Individual Units coming up in the completed DFPs, especially those which had been supported by NABARD will ensure viability of both the DFP and the individual food processing units respectively. 25  For Internal Use only II. Developmental Functions 1. Farm Sector Development The farm sector development initiatives of NABARD aim at developing and demonstrating scalable models for adoption by various stakeholde₹ The major areas of support are Watershed Development, Tribal Development, Promotion of Farmer Producer Organisations, Climate Change and Promotion of Innovations. 1. Watershed Development – a pragmatic approach for development of rainfed areas Watershed Development Fund (WDF) was set up by NABARD in 1999-2000 with an initial corpus of ₹200 crore and augmented annually. Over the years, the programme has evolved with the changing ecosystems and requirements. A total of 74 new watershed projects (including 14 springshed development projects) were sanctioned covering an area of about 64,200 ha and disbursed an amount of ₹ 116.58 crore during 2023-24. As on 31 March 2024, a total of 3,747 projects covering an area of 27.09 lakh ha in 29 states have been sanctioned. The cumulative disbursement stood at ₹ 2,245.29 crore as on 31 March 2024. The watershed development projects helped the communities in conservation of natural resources, bringing wastelands under cultivation, improving groundwater levels, enhancing crop production and productivity leading to income and livelihood security of vulnerable rural households. A. Major interventions with support of KfW The soil restoration programme for sustainable food security (Phase I) under KfW's SEWOH ('One World, No Hunger' of the German Federal Ministry, Economic Cooperation and Development Department) was implemented successfully by NABARD in 123 completed watersheds in 32 districts of five states viz., Karnataka, Telangana, Andhra Pradesh, Odisha and Chhattisgarh. The phase II of KfW Soil programme has been completed successfully in the states of Kerala and Jharkhand (43 projects). The KfW review mission that visited project villages in February 2024 expressed high level of satisfaction for timely and effective completion of KfW Soil projects. During the year, an amount of ₹2.5 crore was released under KfW Soil phase II. Based on the success of SEWOH Phase-I & II, the programme (KfW Soil Project) was extended to Bihar (10 projects), Maharashtra (13 projects) and Tamil Nadu (25 projects) under Phase III in FY 2021-22 with financial support of € 4.5 million from KfW. An amount of ₹9.19 crore was released under KfW Soil phase III during 2023- 24. 26  For Internal Use only Figure 1: Low Cost Poly house Impact evaluation study conducted by ICAR-Central Research Institute of Dryland Agriculture: Impact evaluation study was conducted by ICAR-Central Research Institute of Dryland Agriculture in selected watershed projects (15) covered under KfW Soil Phase II Programme. The highlights include improvements in ground water recharge, Financial Rate of Return (FRR) of more than 20%, enhanced green cover showing good resilience to climate change, improved access to drinking water and significant improvement in Soil Organic Carbon (SOC) and enhanced capacities of community to climate change. B. Other major developments during the year 2023-24 a. Successful Grounding of JIVA Programme: JIVA, an Agroecology programme has been successfully piloted in 24 projects in 11 states covering completed watershed and tribal areas in covering five agroecological zones in vulnerable rainfed areas was grounded in the year, 2023-24. Over 1000 project beneficiaries covering about 330.88 ha have adopted natural farming practices rooted with agroecology principles. o Impact of JIVA programme: The transition to multiple cropping systems integrated with muti-tier kitchen gardens, trees and livestock with natural farming as cardinal principle has led to an income increase of ₹ 10,000 to ₹ 15,000 in one season, with improvements in soil moisture, structure, and microbial activity 27  For Internal Use only through the use of bio-resources and natural mulching, maintaining multi-tier crops for longer periods, etc. b. JIVA Monitoring Evaluation & Learning (MEL) Portal: JIVA- Monitoring, Learning and Evaluation portal (JIVA- MEL), a robust portal-based monitoring system, has been developed for the JIVA projects to ensure the end use of funds released. JIVA MEL Portal is an online tool that facilitates data collection & report generation to evaluate the physical and financial progress of the JIVA projects as well as progression of farmers in adopting agroecological approaches. It is the first of its kind agroecology portal which is designed to monitor the progress, outcomes & outputs and progress of farme₹ c. Geospatial Technology based detailed project reports for watershed projects: To address the ongoing challenges in watershed planning, geospatial technology is being used in the watershed planning process. Three DPRs were prepared initially on pilot basis using geospatial techniques in Maharashtra, Odisha, and Telangana. In view of the several advantages conferred by geospatial techniques, and NABARD’s endeavour for “Digitalisation” of its programmes/projects, the approach is being upscaled across 7 states including Andhra Pradesh, Karnataka, Tamil Nadu, Telangana, Madhya Pradesh, Maharashtra, and Odisha with 14 implementing agencies. d. Water Budgeting towards building resilience to climate change: A simple MS-Excel based water budgeting tool has been developed and used in 29 watersheds across 8 states to facilitate demand side management of water through crop diversification and improving water use efficiency in the water stressed rainfed areas. The water budgeting tool is expected to facilitate achieving water security in water stressed rainfed vulnerable areas. e. Credit Flow in Watershed Development Projects: A special study on credit flow was conducted across 19 states covering 34 watershed projects spanning 198 villages with geographical area of 35,236 hectares. The study highlighted doubling of crop loan accounts, threefold increase in overall credit flow, five-fold increase in agriculture term loans and nearly doubling of credit flow to Self Help Groups in the project villages of watershed development projects. This study corroborated the effectiveness watershed development programme in reducing the risk in rainfed farming and in improving the credit absorption capacity. The significant increase in credit flow was observed in Tamil Nadu, Andhra Pradesh, Karnataka, Telangana, Maharashtra, Chhattisgarh and Bihar states. 28  For Internal Use only f. Simple tool for Climate Change Vulnerability Assessment: A project was sanctioned to CRIDA, ICAR for development of simple MS-Excel based tool for sector wise climate risk mapping and vulnerability assessment that forms basis for devising interventions in the watershed development projects, thus making the watershed development programme, a robust science based climate change adaptation programme. g. Migration of NABARD Bhuvan Portal and Rolling out of Portal based monitoring: NABARD Bhuvan portal has been migrated to NABARD’s server and the portal is operationalized and rolled out from NABARD’s environment since 1st January 2024. A total number of 1125 watersheds and springsheds have been onboarded to NABARD Bhuvan portal and 1.69 lakh assets has been geotagged in the portal. This portal integrates the MIS (physical and financial progress) and GIS and facilitates use of remote sensing satellite images in monitoring and impact evaluation of watershed/springshed development projects. h. Capacity Building Initiative o A special training for the officers of north-eastern states and other hill states was organized through with technical support of ACWADAM, expert agency in springshed development. The capacities of our officers on identification, delineation, planning, appraisal and monitoring of springshed development were developed. o Under JIVA Programme, three capacity building workshops and field exposure visits were carried for ROs, DDMs and Implementing agencies. o Two workshops, one covering basic aspects and the other on advanced features of geospatial technology based DPR preparation were organized for the ROs and implementing agencies. 2. Tribal Development - Sustainable livelihoods for tribal communities NABARD had set up a dedicated Tribal Development Fund (TDF) with an initial corpus of ₹50 crore to provide sustainable livelihood options to tribal families for addressing their twin challenges viz., food security and distress migration. The Orchard Model wherein identified tribal families are provided with financial support for developing one-acre orchard of suitable horticulture tree crops increases the water table and reduce soil erosion, thereby increasing the production and productivity of the land. For landless tribal families, need-based on-farm and off farm activities are also promoted. As on 31 March 2024, a total of 985 projects have been sanctioned under TDF, covering approximately 6.27 lakh tribal families and 5.84 lakh acre area. Around 2.92 crore trees have been planted in these orchards, which have a potential of sequestration of 6.28 lakh ton carbon dioxide per year. During 2023-24, 59 new projects have been sanctioned with a commitment of ₹124.80 crore, benefitting 0.20 lakh families. An amount of ₹125.09 crore has been disbursed for the ongoing and newly sanctioned projects. 29  For Internal Use only A. Major Developments NABARD subscribed to 30 lakh Zero Coupon Zero Principal (ZCZP) instruments (of amount ₹30.00 lakh) issued by Ekalavya Foundation, on Social Stock Exchange. The instruments were issued by Ekalavya Foundation to raise funds for a project based on sustainable livelihood development of 100 tribal families in Telangana and the subscription has been made from Tribal Development Fund. 3. Farm Sector Promotion Fund - Piloting farm innovations A. Physical and Financial Achievements in FY 2023-24 (₹ crore) Interventions Financial Target Achievement Ach% FSPF 30.00 28.26 94.2 B. Highlights During the year, 139 projects were sanctioned with grant assistance of ₹ 24.41 crore under Farm Sector Promotion Fund (FSPF) towards promoting ICT/IOT based projects, FPO Accelerator project, Millet value chain, application of drone technology in agriculture, application of AI technology and Robotics based interventions in agriculture, value chain development of apple, promotion of Agro-Tourism, establishment of Community Common Facility Centre (CCFC) for promotion of scientific honey harvesting, processing training & marketing of value added products through FPO, demonstration for high value vegetables production through hydroponics technology, etc. C. Major Initiatives under FSPF a) NABARDs Millet initiatives: During the year, 19 projects have been sanctioned for promotion of millet value chain in states viz., Arunachal Pradesh, Bihar, Chhattisgarh, Gujarat, Jammu & Kashmir, Jharkhand, Madhya Pradesh, Mizoram, Odisha, Rajasthan, Uttar Pradesh, West Bengal etc. The major activities supported under these projects are package of practices like seed production, farm mechanization, integrated pest and nutrient management to be adopted for improving production and productivity; training and capacity building of farmers on good agriculture practices, postharvest management (processing for value addition), storage and marketing. b) Hi-Tech Agriculture Projects: Under FSPF, 15 DPR projects on Hi-tech Agriculture, IOT/ICT, AI, Drone & Hydroponics based technologies etc., were sanctioned during FY 2023-24. c) Pilot project on Encouraging Rural Youth in Agriculture for agri entrepreneurship development in 15 aspirational districts of 12 states of India: Under the pilot project scheme, 3 projects in states viz., Jharkhand, Rajasthan & Odisha and were sanctioned during FY 2023-24 and the projects are in preliminary stage of implementation. 30  For Internal Use only d) Accelerator project for 30 FPOs in Karnataka sanctioned to Krishi Kalpa Foundation: An accelerator project for 30 FPOs in Karnataka was sanctioned with grant assistance of ₹ 159.70 lakh under FSPF to enable FPOs play a pivotal role in fostering agricultural innovation and sustainable practices. The project intended to increase the turnover and revenue of FPOs through capacity building, credit linkage, market linkage, etc. e) School Soil Health Programme in 1000 schools: DoA&FW has implemented a pilot project on “School Soil Health Programme” by setting up of 20 Mini Soil Testing Labs in 20 schools (10 Kendriya Vidyalayas & 10 Navodya Vidyalayas) situated in rural areas. As an extension of the programme, NABARD has sanctioned financial assistance of ₹ 12.00 crore for setting up Mini Soil Testing Lab in 1000 schools i.e., KVS/NVs/Eklavyas Model Residential School (EMRS) identified by DoA&FW through NABFOUNDATION as channel Partner. The programme is intended to sensitize school students on the importance of soil health and engage them in soil testing programme and generate soil health cards to farmers through Soil Health card portal of GoI. f) Sanction of pilot for Mobile App Development for AC&ABC scheme: NABARD has sanctioned grant assistance of ₹ 61.36 lakh/- to National Institute of Agricultural Extension Management (MANAGE), Hyderabad for designing and development of Mobile App & Web Application for Agripreneurs for Agri Clinic & Agri business Centre (AC & ABC) scheme and Farmers under FSPF of NABARD for fulfilling the demand-side requirement of facilitating linkages between agripreneurs and farme₹ 4. Farmers’ Producer Organisations (FPOs) NABARD has set up dedicated funds viz., Producers Organization Development Fund and PRODUCE for demonstrating innovative models and facilitate mainstreaming of such models through funding by banking institutions for achieving larger outreach. Cumulatively NABARD has promoted about 7000 FPOs with a membership of more than 24 lakh farmer members, of which, about 82% are small and marginal. A. Progress under Scheme being implemented by NABARD for FPO a. Producer Organisation Development Fund (PODF): PODF has been created out of NABARD’s profit for supporting training and capacity building, market linkages, exposure visits and rural marts of FPOs, leading them to evolve into sustainable business organisations. During FY 2023-24, ₹397.17 lakh was disbursed under PODF. b. Producers’ Organization Development and Upliftment Corpus (PRODUCE) Fund: During 2014-15, GoI created Producers Organization Development and Upliftment Corpus (PRODUCE) Fund of 200.00 crore in NABARD for promotion of 2,000 FPOs. As on 31 March 2024, 2,154 FPOs were promoted and about 10.03 lakh farmers were mobilized contributing to an equity of ₹11,259.74 lakh. About 855 and 1678 FPOs promoted under the scheme have been credit and market linked, respectively. During FY 2023-24, ₹ 672.22 lakh was disbursed. c. Producer Organisation Development Fund-Interest Differential (PODF-ID): During 2018-19, NABARD introduced a new scheme i.e. Producers’ Organization Development Fund – Interest Differential (PODF-ID) for promotion and nurturing of 3000 FPOs. During FY 2023-24, 213 new FPOs were sanctioned under PODF-ID and ₹4144.19 lakh 31  For Internal Use only was disbursed. As on 31 March 2024, about 9.97 lakh farmers have been mobilized contributing to an equity of ₹10661.47 lakh. Further, about 919 and 1523 FPOs promoted under the scheme were credit and market linked, respectively. B. Central Sector Scheme on Formation and Promotion of 10,000 FPOs: GoI had announced Central Sector Scheme on Formation and Promotion of 10,000 FPOs in the Union Budget of 2019-20. NABARD, as one of the Implementing Agencies under the scheme, has empanelled 110 Agencies to work as CBBOs across the country. NABARD is convenor of D-MC in 353 districts & convenes SLCC meeting in 21 states. As on 31 March 2024, NABARD has sanctioned 1,694 FPOs under CSS on 10,000 FPOs. A total of 4.51 lakh farmers have taken the membership of various FPOs by contributing equity of ₹4321 lakh. During FY 2023-24, an amount of ₹1040.35 lakh was disbursed. C. Other Initiatives for supporting FPOs FPO incubator to FPO accelerator: NABARD has supported a FPO accelerator initiatives. This is a structured framework to empower FPOs by providing access to specialized training, mentorship, and resources. By leveraging these platforms, FPOs can enhance their operational efficiency, adopt modern agricultural techniques, and navigate market complexities. This model facilitates networking among FPOs, creating a collaborative ecosystem that encourages knowledge-sharing and collective problem solving & connecting them with leading agri -start-ups. Pilot project on Agri-Value Chain Financing: NABARD has sanctioned ₹ 9.90 lakh to Unnati (M/s. Akshamala Solutions Pvt. Ltd.) for training and digitisation of 08 FPOs and 1 PACS towards capacity building of FPOs, digitization, onboarding of FPO on uStore etc. in Bihar, Uttar Pradesh, and Maharashtra to create a model on Agri Value Chain Financing. Credit Guarantee Scheme: 93 ELIs (Eligible Lending Institutes) have onboarded with NABSanrakshan, so far, under Credit Guarantee Fund Trust for Farmer Producer Organizations (CGFTFPO) and credit guarantee cover of ₹ 278.20 crore have been sanctioned for 1195 FPOs (1561 guarantees). FPO Melas with SFAC and ONDC: NABARD, in partnership with SFAC & ONDC, is conducting FPO Melas (“TARANG-celebrating Collectivisation”) at 50 locations across 24 states/UTs to demonstrate the products of FPOs/OFPOs to enable the marketing & branding of FPO products & to uplift their sales across the country with the help of ONDC network (e-commerce). 23 Melas have been conducted in the first phase across 23 states/UTs. FPO Conclaves: NABARD conducted two conclaves on Sustainability of FPOs at BIRD, Lucknow and BIRD Kolkata. The Kolkata conclave was exclusively for FPOs of Eastern & Northeastern Region. Conclave brought out issues of FPO ecosystem and recommendations for making FPOs sustainable. Price Protection Scheme by NCDEX: NABARD has sanctioned ₹ 25.00 crore to NCDEX for a period of 01 year for Price Protection Programme for FPOs to encourage farmers to avail themselves of Put Option in commodity market. Price Protection