Transcription
CMYK 150#NATIONAL BANK FOR AGRICULTURE ANDRURAL DEVELOPMENTGenesisCapital structureThe paid up capital of NABARD is Rs.2,000crore, subscribed by the GoI and RBI atRs.550 crore and Rs.1,450 crore respectively.National Bank for Agriculture and RuralDevelopment (NABARD) was establishedby an Act of the Parliament on 12 July1982. The agriculture credit functions of theReserve Bank of India (RBI) and refinancefunctions of the then Agricultural Refinanceand Development Corporation (ARDC) weretransferred to NABARD on its formation.Management StructureThe management of NABARD is vested with aBoard of Directors comprising the Chairman,Managing Director, representatives of RBI,GoI, State Governments, and Directorsappointed by the re and rural prosperity througheffective credit support, related services,institution development and other innovativeinitiatives.Composition of Board of DirectorsØ ChairmanØ Three Directors from amongst expertsin rural economics, rural development,village and cottage industries, smallscale industries or persons havingexperience in the working of cooperativebanks, regional rural banks orcommercial banks or any other matterthe special knowledge or professionalexperience which is considered usefulto NABARDMandateNABARD was set up by Government of India(GoI) as a development bank with a mandatefor providing and regulating credit and otherfacilities for the promotion and development ofagriculture, small scale industries, cottage andvillage industries, handicrafts and other ruralcrafts and other allied economic activities inrural areas with a view to promoting integratedrural development and securing prosperityof rural areas, and for matters connectedtherewith or incidental thereto.Ø Three directors from out of the directorsof Reserve Bank of IndiaØ Three directors from amongst theofficials of the Central GovernmentØ Four directors from amongst the officialsof the State GovernmentObjectives Facilitate credit flow for agriculture, ruralinfrastructure and rural development, Promote policies, practicesinnovationsconducivetodevelopment,Ø Such number of directors elected in theprescribed manner by share holdersother than RBI and GoIandrural Strengthen rural credit delivery systemthrough institutional development, Supervise Rural Financial Institutions(Cooperative Banks and Regional RuralBanks). Consultancy services.Ø Managing DirectorOrganisational setupNABARD has its Head Office at Mumbai, 30Regional Offices located in the states, a Cellat Srinagar, Training Establishments at Bolpur,Hyderabad, Mangalore and Lucknow and 395District Development Managers functioningat district level. NABARD has 2887 officerssupported by other staff.1 CMYK 150#
CMYK 150#Client InstitutionsCredit relatedDevelopment orientedScheduled Commercial BanksRegional Rural BanksRegional Rural BanksState Cooperative Banks and DistrictCentral Co operative BanksState Cooperative Banks and DistrictCentral Cooperative BanksState Cooperative Agriculture and RuralDevelopment BanksState Cooperative Agriculture and RuralDevelopment BanksNon Governmental Organizations andVoluntary AgenciesPrimary Urban Cooperative BanksRural Development and Self-EmploymentTraining InstitutesNon Banking Finance CompaniesState GovernmentsNABARD’s functions at a glancePromotion and Development Credit Planning and Monitoring Preparation of district-wise annual PotentialLinked Credit Plans (PLPs), mapping theexploitable potential in agriculture andallied sectors, rural non-farm sector, etc.,available for development through bankcredit, Preparation of State Focus Paper (SFP)based on the Potential Linked Credit Plans(PLPs), Formulation of policies and operationalguidelines for Rural Financial Institutions(RFIs), Monitoring the flow of ground level creditto agriculture and allied sectors, Coordination with various Governmentagencies and departments at district, stateand national level. Financial Services Ø Refinance by way of loans and advancesto RFIs for financing investment andproduction purposes in rural areas,SupervisionØ Loans to State Governments fordeveloping critical infrastructure includingsocial infrastructure in rural areas andstrengthening cooperatives,On-site inspection of Cooperative Banksand Regional Rural Banks (RRBs), Off-site surveillance on the financial healthof Cooperative Banks and RRBs.Credit PlanningDistrict Level PlanningØ Monitoring and evaluation of projectsfinanced,Potential Linked Credit Plans (PLPs) areprepared by NABARD annually for all theØ Co-financing with financial institutions.2CMYK 150# NABARD’s operations in briefØ Support for micro credit innovations of NonGovernmental Organisations (NGOs) andother formal and non-formal agencies, Capacity building of partner institutions,Support to innovation and experimentationof new models and practices in ruraldevelopment and credit delivery system,Dissemination of innovative products andideas,Support Research and Development(R & D),Institutionaldevelopmentofclientorganisations including revitalisation,Assisting RBI and GoI in formulation ofpolicies relating to rural credit,Promotion of micro credit innovations,Promotion of Farmers’ Clubs, Joint LiabilityGroups and Tenant Farmers,Promotion of Rural Non-Farm Sector(RNFS),Promotion of Kisan Credit Card (KCC)scheme,Consultancy services.
districts in the country. It maps the potentialavailable for development in agriculture andrural sectors in the districts and projects thecredit requirements, taking into account thelong term physical potential, infrastructureavailable and planned, extension services,marketing support, credit absorption capacityand the strength and capabilities of theRural Financial Institutions (RFIs). The PLPsnow form the basis for preparation ofAnnual Credit Plan at the district level bybanks.CMYK 150#operations, banks follow production-orientedsystem of lending. The assessment of creditrequirement is based on area under differentcrops and crop wise scales of finance.NABARD provides refinance by way of creditlimits for financing seasonal agriculturaloperations at concessional rate of interestto State Cooperative Banks (SCBs) andRegional Rural Banks (RRBs).Interest SubventionDuring the year 2008-09 GoI provided 3%interest subvention to banks to ensureavailability of crop loans upto Rs.3 lakhto farmers at 7% interest. NABARDcoordinated the interest subvention schemein respect of cooperatives and RRBs.State Level PlanningState Focus Paper which presents, inter alia,a comprehensive picture of the potentialavailable in each state for development ofagriculture, allied and other rural sectorswhich could be exploited with institutionalcredit and also critical gaps in infrastructureand support services which need to be filledin, is prepared.As per the budget announcement for 200910, interest subvention of 2% per annumis available to the banks and additionalinterest subvention @ 1% would be givento those prompt paying farmers who repaytheir ST crop loans within one year.State Credit Seminars are convened annuallyby the Regional Offices of NABARD, wherethe State Government Departments andagencies, banks, voluntary agencies NGOs,etc., participate and discuss policies andoperational measures required for addressingthe constraints in development of the potentialavailable in agriculture, allied and other ruralsectors in the state and channelising credit.These seminars are aimed at action planningby all concerned to promote developmentof rural areas through credit and non-creditsupport services. Banks, State Governmentsand other agencies refer to this document intheir planning process.A pilot scheme to provide short termrefinance to State Cooperative Agricultureand Rural Development Banks (SCARDBs)introduced in 3 states was extended to coverall SCARDBs in the country. During the year2008-09, refinance was extended to Keralaand Rajasthan SCARDB at 4.5% for lendingto the ultimate borrowers at 7%.Short Term (ST) - OthersRefinance support is extended for variousother activities, other than SAO, to:Cooperative Banks for financing:National Level Planning Agriculture, allied and marketing activities,NABARD facilitates GoI, RBI and StateGovernments to evolve policy decisions oncredit flow to agriculture and rural development. Credit functions and Clients Marketing of crops,Pisciculture,Industrial cooperative societies (other thanweavers),Labour contract and forest labourcooperative societies including collectionof minor forest produce,Rural artisans including weaver membersof functional societies, viz., PACS/LAMPS/FSS,Procurement of agricultural inputs(fertilisers, seeds, etc.).Short Term (ST) Credit Seasonal Agricultural Operations(SAO) To ensure timely availability of credit tofarmers for taking up seasonal agricultural3 CMYK 150#
Regional Rural Banks for financing:CMYK 150#Weavers’ finance - OutsideCooperative foldØ Marketing of crops,Ø Pisciculture,Ø Production and marketing of activities ofartisans (including handloom weavers)and village/cottage/tiny sector industries,Ø Persons belonging to weaker sections ofthe society engaged in trade/ business/service activities including distribution ofinputs for agriculture and allied activities.The weavers outside the cooperative fold,organised into Handloom weavers groups onthe lines of joint liability groups are supportedthrough Cooperative Banks, Regional RuralBanks and Commercial Banks. Recognisingthe role of Master Weavers, a scheme hasbeen formulated to support marketing andinput infrastructure of handloom weaversthrough master weavers.Liquidity Support to SCBs and RRBsIn order to enable Cooperative Banks andRRBs to tide over the temporary liquiditycrunch due to implementation of the ADWDRScheme 2008, NABARD has provided liquiditySupport to SCBs and RRBs.Medium Term CreditMedium Term (Conversion) LoanOn the State Governments declaringsubstantial crop loss on account of naturalcalamities affecting the farmers’ ability to repaytheir production credit dues to banks, refinanceby way of medium term loan is granted toState Cooperative Banks and Regional RuralBanks to enable them to convert their shortterm loans of farmers into medium term loans.This facilitates the farmers to become eligiblefor fresh loans. The repayment period of theconverted loan is 3 years, which may beextended to a maximum of 7 years in case ofrecurring calamities.Weavers’ FinanceRefinance is extended to State CooperativeBanks/DCCBs for financing the workingcapital requirements of Primary WeaversCooperative Societies, individual Weavers,Handloom Weaver groups and MasterWeavers for their production and marketingactivities. NABARD also provides refinanceassistance to State Cooperative Banksfor financing the Apex/Regional WeaversCooperatives for procurement and marketingof products of primary weavers cooperativesand for trading in yarn.Medium Term (non schematic) LoansTheStateHandloomDevelopmentCorporations engaged in procuring andmarketing of products from decentralisedweavers units outside cooperative foldare also extended refinance through StateCooperative Banks and Commercial Banks.Refinance is provided to SCBs and RRBs forfinancing farmers to acquire productive assetsfor certain approved agricultural investmentpurposes.Investment CreditInvestment credit leads to capital formationthrough asset creation. It induces technologicalupgradation resulting in increased production,productivity and incremental income tofarmers and entrepreneurs.Eligible InstitutionsNABARD sanctioned short term loansof Rs.19627 crore to SCBs and RRBs forproduction purposes during 2008-09 againstwhich maximum outstanding was Rs.17212crore. NABARD also sanctioned Rs.5255crores as liquidity support to SCB andRRBs during 2008-09 as against maximumoutstanding was Rs.4269 crore.NABARD provides refinance support toSCARDBs, SCBs, RRBs, CBs, ScheduledPrimary Urban Cooperative Banks, NorthEast Development Finance Corporation Ltd.,(NEDFI), Non Banking Financial Companies(NBFCs), etc., in respect of their term loansextended in the rural areas.4 CMYK 150#
CMYK 150#borrowers, thereby enabling them to have areasonable surplus after repayment of the loaninstallments are necessary conditions to besatisfied to sanction refinance for investmentcredit. The period of refinance ranges between3 and 15 years, depending on the purpose forwhich it is provided.Capital Investment Subsidy SchemesAs a nodal agency, NABARD overseethe operationalisation of the followingcapital investment subsidy schemes ofGovernment of India. Construction of cold storages, oniongodowns and rural godowns Development / strengthening ofagriculture marketing infrastructure,grading and standardisation Establishing Agri-Clinic and AgriBusiness centres by agriculturegraduates Supporting bankable projects forcommercial production of organic inputslike bio-fertiliser, vermiculture hatcheryand composting units of fruit andvegetable wastes, etc.NABARD provided refinance support ofRs.10535.29 crore for investment creditduring 2008-09 showing a growth of16.46% over the previous year.Eligible purposes for refinanceMinor and Micro irrigation, land development,waste land development, dry land farming, farmmechanisation, plantation and horticulture,animal husbandry, fisheries, storage godownsand market yards, renewable sources ofenergy, post harvest management, agroand food processing, hi-tech projects, agriexport zones, non-farm sector including ruralindustries, micro finance, joint liability groups,contract farming, agri clinic and agri businesscenters, purchase of land by small/marginalfarmers, share croppers, etc., rural housingand disbursements under poverty alleviationprogrammes like SGSY, SC/ST action plan,etc., are eligible for refinance.Central Sector Plan Scheme Venture capital for dairy and poultrysectorsDirect Credit - Loans to StateGovernmentsNABARD also assists client institutions intechno-economic appraisal of projects inaddition to providing refinance.Contribution to the share capital ofcooperativesTo strengthen the owned funds position ofcooperative credit institutions and therebyincreasing their capacity to leverage largerresources, NABARD provides loans to StateGovernments to contribute to the sharecapital of these institutions. This supportis now extended subject to compliance ofVaidyanathan Committee recommendations.Rural Infrastructure DevelopmentFor creating effective demand for agriculturaland rural credit, it was found necessary toaugment rural infrastructure which was beingtraditionally supported by State Governmentsout of budgetary support but was insufficientto meet the growing need and demand.Criteria for refinance and repaymentperiodTechnical feasibility, financial viability andbankability of the projects which ensureincremental income generation to the ultimateWith the objective of assisting the StateGovernments in completing ongoing rural5 CMYK 150#
CMYK 150#infrastructure projects and also to take up newinfrastructure projects, Rural InfrastructureDevelopment Fund (RIDF) was set up withNABARD in 1995-96 for providing term loans atconcessional rates to State Governments withcontributions from Commercial Banks by wayof deposits. Presently, 31 activities coveringalmost all aspects of rural infrastructure arebeing funded under RIDF as mentioned below:Eligible activities under RuralInfrastructure Development FundAgriculture and allied sectors (RIDF loans@95% of projects Cost : All States)All irrigation projectsSoil Conservation, Flood Protection,Watershed, Drainage, Reclamation of waterlogged areaMarketYard,Godown,MarketingInfrastructure, Cold Grading/certifying mechanisms, testinglaboratoriesFishing harbor/jetties, Riverine FisheriesAnimal Husbandry, Modern AbattoirMini Hydel Projects/Small Hydel ProjectsVillage Knowlede Centres, Infrastrucutrefor IT TechnologyDesalination plants in coastal areasSocial Sectors (RIDF loan @ 85% ofprojects cost (90% of projects cost for HillStates of Himachal Pradesh, Jammu &Kashmir, Uttarakhand and North EasternStates including Sikkim)Drinking Waters, Public Health tionsConstruction of toilet blocks in existingschools‘Pay &use’ toilets in rural areasConstruction of Anganwadi CentresSetting up of KVIC industrial estates/centresRural connectivity (RIDF loan @ 80% ofprojects cost (90% of projects cost for HillStates of Himachal Pradesh, Jammu &Kashmir, Uttarakhand and North EasternStates including Sikkim)Rural RoadsRural BridgesThe phasing for implementation of projectsis determined as per the requirements andranges from 3 to 4 years, with an extra yearprovided for projects in Hill States. Themaximum phasing was five years in caseof major and medium irrigation projects andother stand-alone projects involving RIDFloan of Rs.50 crore and above.The cumulative allocation covering RIDFI (1995-96) to XIV (2008-09) is Rs.86,000crore. The cumulative sanctions under all thetranches of RIDF on 31 March 2009 stoodat Rs.88,359.09 crore for 365003 projects.As per the phasing of projects, all the StateGovernments were expected to draw a loanof Rs.73,733.64 crore upto 31 March 2009.However, the actual disbursements to Statesstood at Rs.56,052.20 crore.The allocation to RIDF XV has been Rs.18000crore including Rs.4000 crore to NRRDA forfunding Rural Roads component of BharatNirman during 2009-10.6 CMYK 150#
CMYK dum of Understanding with threeRRBs and West Bengal State CooperativeBank. Twelve new projects were sanctionedwith total financial outlay (TFO) of Rs.94.96crore, bank loan of Rs.64.56 crore andNABARD’s share of Rs.31.55 crore duringthe year 2008-09. Of these projects, tenhave been sanctioned in association withRRBs and two with CBs, covering activitiessuch as button mushroom production,cultivation of herbs, setting-up of IndividualQuick Freezing Plant, modern rice mill, dairy,agri infrastructure, fodder processing andveterinary college. Cumulatively, 40 projectsinvolving TFO of Rs.736.11 crore, bank loanof Rs.486.28 crore and NABARD’s share ofRs.214.11 crore have been sanctioned ason 31 March 2009. An amount of Rs.36.95crore was disbursed during the year under cofinancing arrangement showing an increase of35% over the previous year.Expected benefits as at the end ofMarch 2009 under RIDFl Creation of additional irrigation potentialin 144.97 lakh ha,l Addition of 2.73 lakh kms of rural roadnetwork and 5.06 lakh meters bridgelength,l Contribution to the GDP to the tune ofRs.19467 crore,l Generation of recurring employmentof 70.55 lakh jobs and non recurringemployment of 65353 lakh person days.Thrust AreasGround Level Credit flow toagriculture and allied sectorSeparate window under RIDF forfunding Bharat NirmanGovernment of India continued its efforts toenhance the flow of credit to agriculture andallied sectors. NABARD is closely involvedin monitoring the ground level credit flow andcoordinating with banks and Government ofIndia. The target and achievement in the last2 years are given below:A separate window under RIDF for fundingthe rural roads component of Bharat Nirmanwas created in NABARD with an allocationof Rs.4,000 crore in 2006-07 (RIDF XII). Thisfunding continues with an additional annualallocation of Rs.4,000 crore. The aggregatesanction to National Rural Roads DevelopmentAgency (NRRDA) under Bharat Nirman stoodat Rs.12000 crore and disbursements atRs.12000 crore as at the end of March 2009.Agency-wise performance vis-a-vis target set byGovernment of India(Rs.Crore)AgencyTargetActualTarget 2008-09set for disburse- set for 008-09*Monitoring RIDF ProjectsMonitoring RIDF projects is an importantresponsibility of NABARD as it ensures timelycompletion and high quality of the assetscreated. The primary responsibility howeverrests with the State Governments. NABARDundertakes monitoring of RIDF projects byexception through (a) the desk reviews,based on periodical returns and (b) field visitsby its officers from HO/ ROs / DDMs and theconsultants.CommercialBanks (Public& PrivateSector) CMYK 150#52,00048,25855,00036,762RegionalRural Banks23,00025,31230,00026,724Total* Provisional71,50,000 1,81,088 1,95,000 2,23,663CooperativeBanks2,25,000 2,54,658 2,80,000 2,87,149
CMYK 150#Indo-German Watershed DevelopmentProgramme (IGWDP)To sustain increased flow of credit to theagriculture and allied sectors, Government ofIndia has set a target of Rs. 3,25,000 crore forthe year 2009-10.Kisan Credit Card (KCC)Performance and AchievementThe Kisan Credit Card (KCC) schemeintroduced in August 1998 has facilitated inaugmenting the GLC flow for crop loans byproviding adequate, timely, cost effective andhassle free short-term (ST) loans for SeasonalAgricultural Operation (SAO) to farmers. Thescheme is implemented across the country byall Public Sector Commercial Banks, RRBs andCooperative Banks. The scope of KCC wasbroadened by NABARD to cater to various termcredit needs under a single window. In additionto ST credit and term loans for agriculture andallied activities, a certain component of loanthrough KCC also covers consumption needs.Keeping in view the Government’s emphasison increasing credit flow to agriculture sector,oral lessees, tenant farmers, sharecroppers,etc., are also covered under the scheme. TheKCC holders are covered under a PersonalAccident Insurance Scheme (PAIS) againstaccidental death and permanent disability.ObjectivesDevelopment of micro watersheds in anintegrated and comprehensive manner, forachieving sustainable production system,through people’s participation.Watershed Development Programme has twophases:I.CapacityBuildingPhase(CBP)implemented through identified NGOs,where a small portion of the watershedis taken up for treatment to develop thecapacity and conviction among the farmersto undertake the project activities.II. Full Implementation Phase (FIP)is takenup only after successful completion ofCBP.Kisan Credit Cards issued as at theend of March 2009(No. 4*361.45114.71828.70* position as at the end of December 2008.Watershed DevelopmentWatershed development has proved to bea comprehensive approach to enhanceproductivity of dry land through conserving soil,rainwater and vegetation. NABARD has beenactively supporting Watershed Developmentwhich covered 1.7 million ha under variousProgrammes.NABARD’sParticipatoryWatershed Development Programme hasbeen considered as a pioneering modelin community based Natural ResourcesManagement.Indo German Watershed DevelopmentProgramme (IGWDP) is being implementedsince 1992 in Maharashtra through NGOs andvillage level community based organisations.IGWDP has also been extended to AndhraPradesh, Gujarat and Rajasthan.8 CMYK 150#
Progress under IGWDP as at the end ofMarch 2009l103 Projects have been completed.lBesides, 182 projects are underimplementation in Maharashtra, AndhraPradesh, Gujarat and Rajasthan.,lGrant assistance of Rs 118.44 croredisbursed.In addition to normal implementation ofprojects in 14 States, watershed projectsaggregating 30,000 ha in each of the 31distressed districts are being implementedin holistic manner using WDF in 4 States,viz., Maharashtra, Andhra Pradesh,Karnataka and Kerala.Integrated Watershed Development inSouth BiharImpact of the Watershed u water conservation and rise inground water table leading to increase inagricultural production, productivity,etc.lCrop diversificationlIncrease in fodder availability leading toincreased milk productionlImproved local employment reducingdistress migrationlImprovement in the condition of womenand landlesslContinuous wage employment duringproject implementation and on accountof increased agricultural activity in thepost project periodThe Planning Commision has entrustedNABARD with a project to implementparticipatory watershed development in eightdistricts of South Bihar in association with NGOs,watershed communities, SHGs, etc., under theSpecial Plan for Bihar component of RashtriyaSam Vikas Yojana (RSVY). An amount of Rs.60Crore has been allocated for the programme.The project envisages development of 80,000ha of wasteland in Aurangabad, Banka,Bhabhua, Gaya, Jamui, Munger, Nawada andRohtas districts on the pattern of IGWDP andWDF programme. The entire programme isbeing implemented on grant basis. As on 31March 2009, 77 CBP and 15 FIP projects havebeen sanctioned and a cumulative sum of Rs5.62 crore was disbursed.waterlSignificant increase in demand for creditand dependence on money lendersreduced due to Self Help Group activitylLoan repayments improved with strongcommunity involvement.lImproved quality of life, housing, healthand school attendance visibleNon-Farm SectorRural Non Farm Sector (RNFS) holds the keyto faster economic development of the country.It has potential and promise for generatingemployment and increased income in therural areas, while arresting the migration ofrural population to urban areas in search oflivelihood opportunities. Hence, NABARDhas identified financing, development andpromotion of RNFS as one of its thrust areas.Watershed Development FundCredit SupportWatershed Development Fund (WDF) wasset up in NABARD during 1999-2000 with acorpus of Rs.200 Crore contributed equally byGoI (Ministry of Agriculture) and NABARD forcreating replicable Watershed DevelopmentModels.The refinance products of NABARD cover theentire gamut of manufacturing, processingand service activities in the small and microenterprises sector with focus on cottage,village and tiny industries, rural artisansand rural crafts as also rural housing sector.Refinance is also extended to Industries,Service and Business (ISB) components ofGovernment sponsored programmes.Progress as at the end of March 2009Cumulative:DisbursementCapacity Building Phase:Full Implementation Phase :Total Projects taken up:Rs.123.57Crore454169623Rural Housing/ Rural Habitat andrefinance support to banksRecognising the importance and housingneeds in rural areas, NABARD extends9 CMYK 150#CMYK 150#
refinance support to eligible banks to augmentcredit flow to housing sector. The individualloan ceiling for a new housing unit is Rs.15lakh and Rs.5 lakh for renovation/repairs.CMYK 150#associating Rural Development and SelfEmployment Training Institutes (RUDSETI),banks and voluntary agencies in the conductof training programmes.Refinance provided by NABARD under ruralnon farm sector during 2008-09 was to thetune of Rs.2706.79 crore including Rs.268.47crore for rural housing.District Rural Industries Project (DRIP)District Rural Industries Project was launchedin 1993-94 in 5 select districts (Gwalior inMP, Kurnool in AP, Ganjam in Orissa, SawaiMadhopur in Rajasthan and Sabarkanthain Gujarat) with the objective of h promotional measures togetherwith enhanced credit flow to Rural NonFarm Sector in a coordinated manner.Under the project, a common action plan isprepared and implemented in coordinationwith the Government and non governmentalagencies involved in the promotion of ruralindustrialisation in the selected districts. Thesuccess of the pilot resulted in adding moredistricts under the project from 2001-02 over aperiod of 5 years. This resulted in coverage of106 districts as at the end of March 2007 andfacilitated setting up of more than 34.17 lakhunits and created employment opportunitiesfor over 43.29 lakh persons with a ground levelcredit flow of Rs.25,206.05 crore as on 31March 2009.Promotional SupportPromotion of rural non farm sector isrecognised as an important and necessaryadjunct to NABARD’s refinancing function.The objective of the promotional programmesis to create replicable models to generateand enhance opportunities for employmentand income generation in rural areas in asustainable, demonstrative and cost effectivemanner. NABARD provides grant, grant cumloan assistance to Rural Development and SelfEmployment Training Institutes (RUDSETI),NGOs, voluntary associations, trusts andother promotional organisations, etc.Rural Entrepreneurship DevelopmentProgramme (REDP)RuralEntrepreneurshipDevelopmentProgramme (REDP), introduced on anexperimental basis in the early nineties, asa means to support capacity building of ruralunemployed youth to enable them to set uptheir own enterprises, has proved itself as asuccessful model for employment generationin rural areas. A grant assistance of Rs.1303.60lakh was sanctioned for conducting 2083REDPs/SDPs benefiting 0.30 lakh persons,during 2008-09. The cumulative grantassistance provided for conducting 11,905REDPs/SDPs benefiting 3.00 lakh personsamounted to Rs.6039.53 lakh.Scheme for constructing /Strengthening Rural HaatsRural Haat scheme was introduced in 1999to boost marketing of rural farm and nonfarm products extended to all the Districtsand in addition to PRIs/ PACS, VDBs, NGOs,SHGs Federation and VBBs made eligiblefor assistance under the scheme during theyear. The grant assistance at 90% of theproject cost or Rs.5 lakh, whichever is lower,is extended to implementing agencies forproviding minimum infrastructure facilitieslike raised platforms with shed, drinking waterfacilities, cycle stand, toilets, etc., in the newor existing haats.The Rural Entrepreneurship DevelopmentProgramme has been institutionalised byDuring 2008-09, 46 rural haats havebeen sanctioned with a grant assistanceof Rs.185.90 lakh, raising the cumulativesanction to 101 haats with a grant assistanceof Rs.330.81 lakh as at the end of March 2009.Rural MartA scheme for setting up of marketing outletknown as ‘Rural Mart’ at district and sub10 CMYK 150#
Development Approach include Social,Technological, Infrastructure related, Financialand Marketing interventions.division level by producers’ groups, selfhelp groups and their federations,
Reserve Bank of India (RBI) and refinance functions of the then Agricultural Refinance and Development Corporation (ARDC) were transferred to NABARD on its formation. Mission Promote sustainable and equitable agriculture and rural prosperity through effective credit support, related services, institution development and other innovative
