NABARD and NaBFID Sign MoU to Boost Funding for Rural Infrastructure Projects
Mumbai, August 27, 2026: The National Bank for Agriculture and Rural Development (NABARD) and the National Bank for Financing Infrastructure and Development (NaBFID) have signed a Memorandum of Understanding (MoU) to strengthen collaboration in financing infrastructure projects with a significant rural impact.
According to a press release, the partnership brings together NABARD’s expertise in rural and agricultural infrastructure with NaBFID’s specialized capabilities in infrastructure financing. The agreement provides a framework for joint financing, knowledge sharing, and the development of innovative financing solutions aimed at expanding access to long-term, competitively priced finance for projects that strengthen rural infrastructure and value chains. The MoU was signed in the presence of Monika Kalia, Deputy Managing Director and Chief Financial Officer of NaBFID, alongside Goverdhan S. Rawat and Dr. Ajay K. Sood, Deputy Managing Directors of NABARD.
Dr. Shaji Krishnan V., Chairman of NABARD, stated that rural infrastructure possesses both a social and a commercial dimension. He noted that NABARD’s role has been to fund financially sustainable, market-based structures, and this partnership enables joint work on value-chain financing, capacity building through respective training institutions, and managing both the liability and asset sides of their business. He expressed confidence that the collaboration can help bridge the rural-urban divide and advance rural prosperity, calling the MoU a solid starting point toward that national priority.
Rajkiran Rai G, Managing Director of NaBFID, highlighted the natural synergy between the two institutions, pointing out that NABARD brings deep, long-standing expertise in the rural sector as rural infrastructure emerges as a key driver of economic growth. He emphasized that a real opportunity exists to design commercially viable, bankable projects in areas such as food processing, storage, and cold-chain connectivity, thereby contributing to raising farmer incomes and strengthening the rural economy.
Under the agreement, NABARD and NaBFID will explore funding arrangements and infrastructure advisory services across the project lifecycle, including project identification, appraisal, due diligence, credit structuring, pricing, and joint monitoring. The institutions will also offer joint advisory services covering financial modeling and debt syndication, while leveraging their respective training facilities to support capacity-building initiatives.
The collaboration will focus on Public-Private Partnership (PPP) projects, agri-value chains, and core rural infrastructure. Target sectors include water and sanitation, irrigation, post-harvest storage, cold-chain facilities, terminal markets, rural roads and bridges, warehousing, and compressed biogas. By combining their institutional strengths, both entities aim to facilitate long-term finance availability, improve market access, and support sustainable development across rural India.
