Nabard sanctions over Rs 19,100 crore under RIDF scheme to states

NEW DELHI: Nabard has sanctioned loans worth over Rs 19,100 crore under Rural Infrastructure Development Fund (RIDF) to states for agriculture and allied activities.

"We have sanctioned Rs 19,129 crore till the last week out of Rs 20,000 crore allocated for 2013-14 in the Budget," Chairman of the National Bank for Agriculture and Rural Development, H K Bhanwala told PTI.

In its last meeting, the financial institution sanctioned 33 projects under agriculture and allied sector, 250 projects under rural connectivity sector and 804 projects under social sector with the total outlay of Rs 6,064 crore, he said.

Started in 1995-96 with a corpus of Rs 2,000 crore, the RIDF is created out commercial banks' shortfall in lending to agriculture or priority sector.

RIDF was instituted in Nabard with the sole objective of giving low cost fund support to state governments and State Owned Corporations for quick completion of projects related to medium and minor irrigation, soil conservation, watershed management and other forms of rural infrastructure.

Last month, Nabard reduced refinance rate for banks and other lending agencies by 0.20 per cent to promote rural credit and rural infrastructure.

The refinance rate was reduced by 0.20 per cent and the revised rate of interest on refinance for a period of five years for commercial banks, state cooperative banks, regional rural banks and primary urban cooperative banks will be 9.70 per cent, down from 9.90 per cent.

Further, banks drawing refinance of Rs 500 crore and more in a single drawal will be allowed further reduction of 0.10 per cent, making the effective rate 9.60 per cent, it said.

However, for state cooperative agriculture and rural development banks (SCRDBs), a 0.10 per cent reduction is allowed for a single drawal of Rs 200 crore and above.