Role of National Bank for Agriculture and Rural Development (NABARD) in Bihar

NABARD has a mandate for facilitating credit flow for development of agriculture, agroindustries, village and cottage industries, handicrafts and other rural crafts by providing refinance to lending institutions in rural areas. It also coordinates the operations of rural credit institutions and offers training and research facilities. In addition, it manages the Rural Infrastructure Development Fund (RIDF), created to compensate for the shortfall in commercial banks’ lending to strengthen rural infrastructure and to provide loans to state government for projects relating to irrigation, soil conservation, watershed management, drinking water supply, cold storage chains and other rural infrastructure projects.

Refinancing by NABARD has been continuously increasing and stood at Rs 826 crore at the end of 2009-10. Most of the financial support has been provided by way of RIDF loans,.

The new initiatives taken by NABARD during 2009-10 included the following:

• Promotion of System of Rice Intensification (SRI) Programme and System of Wheat Intensification Programme to increase production and productivity;

• Augmenting productivity of lead crops/activities through adoption of sustainable

agricultural practices.

• Promotion of loan based natural resources management activities with community

participation through Umbrella Programme on Natural Resource Management (UPNRM);

• 100 percent refinance to all agencies in Bihar for investment credit to increase ground level credit flow for agriculture;

• Implementation of six newly introduced Centally Sponsored Schemes under animal husbandry;

• Implementation of modified version (with changed mode from interest free loan to subsidy schemes) of venture capital fund in dairy schemes i.e. Dairy Entrepreneurship Development Schemes (DEDS);

• Pilot project on technology transfer, credit counselling and market advocacy through farmers' clubs;

• Intensification of promotion of Joint Liability Groups (JLG);

• Preparation for launching of Priyadarshini Programme in Sitamarhi and Madhubani districts; and

• Capital subsidy-cum-refinance scheme for installation of Solar Off-grid (Photo-voltaic and thermal) and decentralised applications under the Jawaharlal Nehru National Solar Mission