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Nabard gets Rs 380 cr from German development bank

Posted on Dec 21, 10:18AM | UNI

National Bank for Agriculture and Rural Development has signed a 54 million euro (Rs 380 crore) agreement with German government's development bank KfW for funding second phase of its umbrella programme on natural resources management(UPNRM).

The pact consists of credit lines of 52 million euro and an accompanying technical assistance grant of 2 million euro, German embassy here said in a statement today.

The agreement, guaranteed by the Indian government, supports Nabard in implementing its natural resources management policy for improving the quality of life of the rural poor through improved natural resource management in an equitable and sustainable way.

Instead of grants and soft loans, phase two of UPNRM is the first direct lending programme for Nabard envisaging a shift from spending to investments.

The first phase of the programme worth 15 million euro was implemented in two years.

The rural area programme, which has both loan and grant components, is aimed at including socially and economically disadvantaged groups such as landless, small and marginal farmers,and tribals.

Under the loan component, Nabard will provide loans to technically and financially viable community-based natural resource management projects, the statement added.