NABARD signs agreement for co-financing project in Kerala

Thiruvananthapuram, May 29 (UNI) The National Bank for Agriculture and Rural Development (NABARD) has executed a tripartite agreement for co-financing project in the state.

NABARD Chief General Manager (Kerala) Bhawar Puri, Canara Bank and M/s Grove Snacks Pvt Ltd had executed the tripartite agreement for financing M/s Grove Snacks.

The project with a financial outlay of Rs 6.09 crore is the first ever co-financing project undertaken by the NABARD in Kerala, a bank release said here.

The agri-business project with an installed capacity of 3300 MT, for processing banana and casava chips, processed peanuts and cashewnuts was expected to commence production shortly. NABARD and Canara Bank were expected to disburse Rs 228 lakh each to the client, the release said.

The NABARD had executed MoU with select banks for undertaking co-financing projects all over the country and Canara Bank was one of the active partners in co-financing agricultural projects.

The NABARD, accredited with the task of facilitating agriculture and rural development had taken a proactive step for co-financing big agricultural projects in association with banks.

The main focus under the co-financing arrangement was to promote technology-oriented projects involving large financial outlay and longer repayment/gestation period.

The co-financing would mitigate the risk involved in agriculture and rural development projects and ensure adequate credit and technical support to prospective borrowers. This would result in increase in the flow of credit to the investment sector and in turn create more capital formation in agriculture.

The NABARD had set a target of Rs 20 crore as its contribution for taking up similar projects during the current year, the release added.

UNI