Nabard’s financial assistance for supporting agriculture, rural development and rural infrastructure development in Gujarat touched Rs 4340 crore during the financial year 2011-12 as against Rs 2894 crore in 2010-11.
The aid comprises Rs 3270 crore refinance support to banks for expanding farm and non-farm sector loans, Rs 780 crore loan to Government of Gujarat under the Rural Infrastructure Development Fund [RIDF], Rs 205 crore direct finance to District Co-operative banks, Rs 69 crore support for developing warehouse/cold storages and Rs 16 crore loan for setting up two innovative solar power projects.
During the year 2011-12, 161 new projects involving RIDF loans of Rs 1516 crore, one of the highest in a single year, were sanctioned to Government of Gujarat under RIDF for taking up infrastructure projects in rural areas. These include three major irrigation projects. With this, the cumulative sanctions under RIDF reached Rs 10,877 crore, disbursements under which were at Rs 780 crore during the year, taking the cumulative disbursements to Rs 7935 crore. "To match the high growth of agricultural economy of the state, NABARD stepped up its concessional refinance support during 2011-12 to co-operative banks and regional rural banks for financing crop loans to farmers at an interest rate of seven per cent per annum. The refinance released was Rs 2429 crore as against Rs 1334 crore disbursed during 2010-11, registering a growth of 82 per cent," the release further stated.
