ADB to consider $1-billion rural project finance for India

28 November 2006

Asian Development Bank is expected to finalise a $1-billion rural finance project next month to enable co-operatives to make micro credit accessible to India's rural poor, who do not have access to organised sector credit finance.

The project will be implemented through National Bank for Agriculture and Rural Development (NABARD), and is aimed at strengthening the finances of the ailing rural co-operatives in three years.

The project will address issues like access to credit and make the rural financial sector more efficient, he said.

According to Rajat Nag, who is slated to take over as special advisor to ADB president, "We are looking at a 1 billion dollar rural finance project, the largest such project ever by ADB, which goes to the board on December 8 for approval."

Earlier, ADB had held negotiations with the union finance ministry for launching this project.