NABARD logo
Credit: www.nabard.org
Bengaluru: In what could be the first such instance in the country, National Bank for Agriculture and Rural Development (Nabard) has sanctioned a term loan of Rs 4,500 crore to Karnataka Industrial Areas Development Board (KIADB) for the creation of industrial parks across the state, a top Nabard official said.
KIADB will utilise these funds for acquiring over 6,000 acres of land for industrial use in various places. It will acquire 400 acres near Devanahalli, 4,500 acres for KWIN City, and 1,500 acres in Gauribidanur. All these acquisitions are in various stages, according to sources in the industries department.
"We have sanctioned funds to KIADB under the Nabard Infrastructure Development Fund (NIDA). KIADB is the single-largest borrower under the NIDA scheme so far in the country. These projects, once completed, are expected to generate employment and entrepreneurship opportunities for an estimated 60,000 rural youth and women," Surendra Babu, chief general manager, Nabard, Karnataka told DH on the sidelines of Nabard's 44th foundation day on Tuesday.
He said KIADB will get a repayment tenure of seven years including a moratorium of two years.
Nabard launched a new line of credit support called NIDA in 2011 for funding infrastructure projects. Under this fund, loans are provided to state governments or state-owned institutions for creation of infrastructure which facilitates better communication, connectivity, irrigation, social infrastructure and credit absorption capacity in rural areas. NIDA offers customised borrowing terms and conditions based on the requirements of the borrower, nature of the project and risk profile, Babu said.
He said KIADB will utilise funds for land acquisition, development of industrial plots, provide water linkage, electricity connection, road development, etc in the new industrial parks across these locations. Nabard will disburse funds to KIADB in two phases this year and next year, he said.
Nabard is also supporting the state government for creation of rural infrastructure
including rural electrification under RIDF/NIDA, he added.
KIADB intends to utilise funds from Nabard for acquiring land in various places including Devanahalli, as well as make payments to farmers for the land already acquired, M B Patil, Large and Medium Industries Minister M B Patil said.
The KIADB is in the process of acquiring 1,500 acres of land for KWIN City between Doddaballapur and Dobbspet. The farmers in these areas will be paid compensation for their lands as and when the funds are received from Nabard, he said.