NABARD to Raise Rs 10,000 Crore for Green Bonds and Support Agri Startups
The National Bank for Agriculture and Rural Development (NABARD) is planning to raise Rs 10,000 crore through a mix of infrastructure and green bonds. This initiative aligns with NABARD’s green taxonomy and climate strategy for 2030, focusing on sustainable investments in India’s rural economy.
Green Bonds Initiative
Chairman KV Shaji announced that the new bonds will have a duration of over 10 years and will support both infrastructure and green initiatives. This follows NABARD’s successful issuance of social impact bonds last year, which raised Rs 1,040.50 crore.
AgriSURE Fund Launch
Union Agriculture and Farmers’ Welfare Minister Shivraj Singh Chouhan launched the AgriSURE Fund and Krishi Nivesh Portal. The fund aims to support 80 to 100 agri startups over the next five years, focusing on climate resilience, organic farming, and agricultural rural enterprises.
Shaji stated, “We are looking at early-stage startups with innovative ideas. Our aim is to support around 80 to 100 startups, with a ticket size of eight to 10 crores.”
Focus Areas and Selection Process
The AgriSURE Fund will prioritize startups that add value to agriculture, reduce post-harvest losses, and ensure price stability. The selection process will involve an investment committee and collaboration with agricultural universities, state government departments, and other stakeholders.
Ongoing Projects
NABARD is also piloting around 11 projects involving digitized agri-value chain financing in collaboration with banks. If successful, these pilots will be scaled up to further strengthen sustainable agricultural practices.
Doubts Revealed
NABARD -: NABARD stands for National Bank for Agriculture and Rural Development. It helps farmers and rural areas in India by giving them money and support.
Green Bonds -: Green Bonds are special types of loans that are used to fund projects that help the environment, like planting trees or using solar energy.
Agri Startups -: Agri Startups are new companies that use new ideas and technology to help farmers grow crops and raise animals more efficiently.
KV Shaji -: KV Shaji is the Chairman of NABARD. He is the leader who makes important decisions for the organization.
Union Agriculture Minister -: The Union Agriculture Minister is a government official in India who is in charge of farming and agriculture. Right now, it is Shivraj Singh Chouhan.
AgriSURE Fund -: The AgriSURE Fund is a special fund created to help new farming companies (agri startups) get money to start and grow their businesses.
Climate Resilience -: Climate Resilience means being able to handle changes in the weather, like floods or droughts, without getting hurt too much.
Organic Farming -: Organic Farming is a way of growing crops without using chemicals like pesticides or fertilizers. It is better for the environment and health.
Post-Harvest Losses -: Post-Harvest Losses are the crops that get wasted after they are harvested, like fruits that rot before they can be sold.
Digitized Agri-Value Chain Financing -: Digitized Agri-Value Chain Financing means using computers and the internet to help farmers get loans and sell their crops more easily.