NABARD To Launch ₹1,000 Cr Fund For Climate Solutions In Rural Finance

After successfully launching its first fund- NabVentures, a subsidiary of National Bank for Agriculture and Rural Development (NABARD), is preparing to introduce a second round of funding in the upcoming financial year. 

The new initiative- NabVentures Fund 2, will have ₹1,000 crore to support ventures addressing climate change challenges in the rural financial ecosystem, according to NABARD Chairman Shaji K.V.

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Last July, NabVentures, a NABARD subsidiary, launched the ‘Agri-Sure’ fund with an initial ₹750 crore. This includes ₹250 crore each from NABARD and the Ministry of Agriculture, and ₹250 crore from other institutions. The fund aims to promote investment in innovative, technology-driven, high-risk, and high-impact activities in agriculture and related fields.

Commenting on next funding round

Shaji K.V. said,  "We believe that the next wave of productivity growth will come through innovations, and venture capital is essential to support these breakthroughs," he explained. "NabVentures Fund 1 focused on agriculture and rural activities, but Fund 2 will integrate a strong climate component to help address environmental issues in rural India."

“As a development financial institution, we need to create use cases that showcase the potential of such activities to counter climate-related issues. These solutions will be home-grown and will cater to India’s specific needs,” added Shaji K.V.

He also said that NABARD is talking to organizations like the Asian Development Bank (ADB) and the UN Food and Agriculture Organization (FAO) to bring in external expertise for the project.

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With NavVentures Fund 2, NABARD aims to promote innovation in agriculture while tackling climate issues in rural areas, supporting the development of sustainable solutions for India.

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