NABARD announces ‘Agri SURE’ fund

About NABARD

The National Bank for Agriculture and Rural Development (NABARD) was established in 1982 under the National Bank for Agriculture and Rural Development Act, 1981.
NABARD acts as a refinancing institution for all kinds of production and investment credit to agriculture, small-scale industries, cottage and village industries, handicrafts and rural crafts and real artisans and other allied economic activities with a view to promoting integrated rural development.
NABARD gives long-term loans (upto 20 Years) to State Governments to enable them to subscribe to the share capital of co-operative credit societies.
NABARD also provides direct term loans at affordable rates of interest to certain activities like Designated Food Parks (DFPs) and food processing units in the DFPs.
It has the responsibility to inspect RRBs and co-operative banks, other than primary co-operative societies.
It maintains a Research and Development Fund to promote research in agriculture and rural development.
NABARD is wholly owned by the Government of India.

Why in News?

NABARD has announced an agri fund for Start-Ups & Rural Enterprises (Agri-SURE), with initial corpus of ₹750 crore to be managed by its wholly owned subsidiary Nabventures.
- While NABARD and the Ministry of Agriculture are contributing ₹250 crore each, the rest ₹250 crore is from other institutions.
The fund is structured to support about 85 agri start-ups with investment sizes of up to ₹25 crore each by the end of its term.
The fund will provide support through investments in sector-specific, sector-agnostic, and debt alternative investment funds (AIFs), as well as direct equity support to start-ups.
Agri-SURE’s focus areas include promoting innovative, technology-driven initiatives in agriculture, enhancing the farm produce value chain, creating new rural ecosystem linkages and infrastructure, generating employment, and supporting Farmers Producer Organisations (FPOs).
Additionally, the fund would encourage entrepreneurship through IT-based solutions and machinery rental services for farmers, driving sustainable growth and development in the agricultural sector.

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