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NABARD earmarks Rs 2,000 crore for building warehouses

21 Dec 2011 Evaluate

National Bank for Agriculture and Rural Development (NABARD) has set aside Rs 2,000 crore for building warehouses to help facilitate distribution of food grain under the proposed Food Security Act. Under the Rural Infrastructure Development Fund (RIDF), the bank has proposed to provide funds to the tune of Rs 2,000 crore exclusively for construction of scientific godowns across the country in this fiscal.

Further, NABARD is also determined to even finance private entrepreneurs for the first time through banks for the setting up of 'climatic-controlled' godowns under RIDF and is also offering concession of 1.5% in the rate of interest if prompt payment is done by them.

NABARD will provide funds to banks including commercial banks at the rate of 8% instead of 10.5% at present so as to make money available to private entrepreneurs for construction of godowns.

NABARD is set up as an apex Development Bank with a mandate for facilitating credit flow for promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts. It also has the mandate to support all other allied economic activities in rural areas, promote integrated and sustainable rural development and secure prosperity of rural areas.

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