BID Products

NIDA,CFF, DRA, DIDF & FIDF

New Business Initiatives

The new business initiatives were launched as part of Reposition

Exercise undertaken by NABARD in the year 2009-10.
The business began with the launching of two new products, NIDA to
Govt., and DRA to Cooperatives in 2011-12, viz.
During 2012-13, Credit Facility to Federations (CFF) was rolled out.
The Govt. sponsored Infra Fund, DIDF added in 2018-19
The Govt. sponsored Infra Fund, FIDF added in 2019-20
NABARD launched, RIAS added in 2021-22
New Business Initiatives
Importance of BID Products
Total sanctions during 2020-21 Rs. 76,254 crore
Total sanctions during 2021-22 Rs. 64,358 crore
Total disbursements during 2020-21 Rs. 63,047 crore
Total disbursements during 2021-22 Rs. 71,435 crore
Very good potential for Business Growth and Income Generation
New Business Initiatives

New Business Credit products are

NABARD Infrastructure Development Assistance (NIDA)
Direct Refinance Assistance (DRA) to Co-operative Banks
Credit Facility for Federations (CFF)
Dairy Processing & Infrastructure Development Fund (DIDF)
Fisheries & Aquaculture Infrastructure Development Fund (FIDF)
Rural Infrastructure Assistance to State Governments (RIAS)
NABARD Infra. Dept. Assistance (NIDA)
NIDA is a line of credit for rural infrastructure projects under three
channels:
 Funding directly to State Government and State-owned Institutions
 Funding SPVs under PPP infrastructure projects in rural areas
 Funding Non-PPP, rural infrastructure projects of Companies and Co-operatives

Since inception, 124 projects have been sanctioned

Sectors supported Power transmission & Distribution, Renewable energy,
Roads and bridges, Warehousing, Market Yard, Irrigation, Drinking water
and Sanitation
 NIDA – Complimentary to RIDF

RIDF NIDA
NABARD own funds and
1 Source: Priority sector shortfall. 1 And Market borrowings

Project based lending without any

Restricted to Normative Allocation to 2 prior allocation
2 States

3 Based on the financial of borrowing

3 Borrowings Limited under Article 293(3) entity and no limitations

4 Govt. Guarantee only for under rated

4 Govt. Guarantee and Mandate are Must entities and on budget borrowings

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 Eligibility Criteria- State owned entities

 Established or constituted by or under any Central Act, or State Acts and

 Not less than 51% of the paid up share capital of such an institution is held
or controlled by the Central / State Government
 Earned profit during the last three years and not having accumulated losses
 For Government owned entities minimum rating is not prescribed.
 However financing to the under rated entities with Govt. Guarantee or
budget support for serving of loan or both

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NIDA - Business
NIDA offers flexible long-term project loans to well-managed public sector
entities for financing rural infrastructure. Repayment period shall be even upto
25 years.
PPP projects of registered entities like corporates/companies, cooperatives, etc.
Financing under NIDA offers scope for off-budget and on-budget borrowing to
state governments and aids in easing state budget constraints
Major projects sanctioned during the last two years
Kaleshwaram Irrigation Project Corporation Ltd. (KIPCL) in Telangana
Chintalapudi Lift Irrigation Scheme on river Godavari to AP WRDC
 Sectors supported under NIDA Loans

 Power transmission
 Renewable energy (wind and solar power generation)
 Restoration of power distribution
 Roads and bridges
 Warehousing
 Development of Market Yard
 Irrigation
 Drinking water
 Sanitation

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NIDA -Achievements
Progress during the last 5 years has been impressive as indicated below
Year Sanctioned Disbursed
2017-18 7,465 2,921
2018-19 7,363 2,500
2019-20 4,382 3,727
2020-21 22,768 7,506
2021-22 8,125 7,136

Cum. sanctions under NIDA as on 31 August 2022 is Rs. 65850 crore and releases Rs.
31,032 crore
Credit Facility for Federations (CFF)
Core Functions
Launched with the objective of providing ST loans to State Marketing /Co-
operative federations and Corporations involved in Procurement and
Marketing of Agricultural commodities and Supply of Agricultural inputs
like fertilizers, pesticides etc.
Generally, CFF is extended for WC loans towards procurement of
agricultural and allied commodities, supply of agricultural inputs, supply
chain management, value addition etc.
Credit Facility for Federations – 12 Months.
During 2020-21, seven new clients were sanctioned credit limit under CFF .
CFF - Eligibility Criteria
Entity constituted under a Central Act or State Act
Major share of paid up capital held or controlled by Central / State Govt
Earned profit – during last 03 years –not have accumulated loss
Entities with poor financials – considered on merit and provided backed
by Govt Guarantee / other securities
Audit of accounts – regular
Professional Management and democratic set up
No history of defaults in repayment of loans
CFF - Eligibility Criteria
Type of beneficiary Quantum of limit ( ST)
State/Central Govt. Agri i. 100% for the procurement operations under decentralised
Marketing Federations, procurement operations of food grains and Minimum
Corporations Support Price (MSP) Scheme.
ii. 90% for other marketing interventions
ii. Dairy Co-operatives/ Maximum Permissible Bank Finance (MPBF) = Working
Federations/ Agri. Capital Gap(WCG) – Promoter’s Contribution
Marketing Co- Promoter’s Contribution-25% of Total Current Assets (TCA)
operatives/Federations
WCG = Total Current Assets - Current liabilities (other than
and Registered
Companies bank borrowings)
CFF-Achievements
As on 31 August 2022, cumulative sanction under CFF stands at Rs.177222 crore and
cumulative disbursement stands at Rs.227595 crore. Progress during the last 6 years is
given below:

Year Sanctioned Disbursed

2016-17 12,160 15,755
2017-18 15,254 25,436
2018-19 24,435 29,680
2019-20 25,071 37,207
2020-21 40,160 47,853
2021-22 36,436 46,434
DRA to Co-operative Banks
Direct Refinance Assistance - Core Functions – ST Credit
Implementation of the revival package - VC has enabled DCCBs to raise
financial resources from any FIs regulated/ approved by RBI.
In response, NABARD has designed a ST multipurpose credit product for
financing directly to DCCBs and StCBs for expanding their lending.
The important activities supports are
Crop loans above Rs. 3.00 lakh (above interest subvention limit)
Working capital loans for non-farm sector activities
Procurement operations through PACS
Financing against pledge of sugar stock
DRA -Achievements
Since 2010-11, cumulative sanction stands at Rs. 82,680 crore with the
cumulative disbursement of Rs. 70,647 crore.
The year wise progress during the last 6 years is given below:
Year Sanctioned Disbursed
2016-17 5,539 4,740
2017-18 6,447 4,849
2018-19 7,799 6,499
2019-20 8,932 9,200
2020-21 11,890 7,374
2021-22 18,521 17,574
Dairy Infra. Devpt. Fund (DIDF)
DIDF was announced in the Union Budget 2017-18, with a total corpus
of Rs. 8,004 crore over a period of 3 years (2017-18 to 2019-20)
The objective of the scheme are
Modernization and Creation of additional Infrastructure for Milk processing
Value addition by producing more dairy products and
Help the producer owned and controlled institutions to consolidate their market
position in the organized liquid milk market and
Ensure optimum price realization to the primary producers.
Cumulative sanction Rs. 3781 crore and Disbursement Rs. 1382 (States sanctioned
through NDDB – 45 projects supported)
Fishery and Aqua. Infra Dept. Fund (FIDF)
Was announced in the Union Budget 2017-18, with a total corpus of Rs.
7522.48 crore over a period of 5 years (FY 2018-19 to FY 2022-23)
FIDF envisages establishment of Fishing Harbours, Fish Landing Centres,
Integrated Cold Chain, Modern fish markets, Fish processing units and
other infrastructure facilities.
 NABARD shall fund the State Governments for creation of public
infrastructure components of FIDF.
Cumulative sanction Rs. 1260 crore and Disbursed Rs. 366 crore.
So far, 3 fishing harbour projects have been sanctioned to the Government
of Tamil Nadu with total financial outlay of Rs 420.00 crore
Rural Infra. Assist. to State Govt.s (RIAS)
 Launched a new product Rural Infrastructure Assistance to State Governments (RIAS)
with an initial corpus of Rs.15000 crore
 Aim to provide financial assistance to State Govts in Eastern Region, for creating
infrastructure that supports rural livelihoods, hinging on 5-J approach
 Jan (human being),
 Jal (Water),
 Jameen (land),
 Janwar (livestock) &
 Jungle (forest).
In other words, RIAS would fund all activities that promote "Atmanirbharata" (Self-
Reliance) and "circular economy" which eliminates wastes and promotes continual use of
precious resources.
Thank you