Financial Services Secretary Vivek Joshi emphasizes the importance of RIDF in transforming rural economy

The Rural Infrastructure Development Fund (RIDF) has been identified as a fundamental element in the transformation of India's rural economy. This was the message conveyed by Financial Services Secretary Vivek Joshi during his inaugural address at a stakeholders meeting with finance secretaries and senior officers from state and Union Territory (UT) governments on October 11, 2021. Joshi stressed the urgency for swift completion of pending projects under RIDF that have been ongoing for more than three years.

Origins and Purpose of RIDF

RIDF was established by the Indian government during the fiscal year 1995-96 to provide funding for ongoing rural infrastructure projects. The fund is managed by the National Bank for Agriculture and Rural Development (Nabard). Domestic commercial banks contribute to this fund proportional to their deficit in stipulated priority sector lending to agriculture. The primary aim of RIDF is to offer loans to state governments and state-owned corporations, enabling them to complete ongoing rural infrastructure projects.

Role of RIDF in Transforming Rural Economy

In his speech, Joshi accentuated how pivotal a role RIDF plays in transforming India's rural economy. He called upon all state governments to expedite project completions that are older than three years. MP Tangirala, Additional Secretary Department of Financial Services, presented an exhaustive report on RIDF achievements and future plans.

Stakeholders’ Discussion on RIDF

The participants from various states/UTs engaged in detailed discussions about numerous topics related to RIDF during breakout sessions. Their views were then presented back to all stakeholders present at the meeting. Following these presentations, Joshi praised constructive observations made during these talks. He further advised Nabard officials present at the meeting, including Chairman Shaji KV, to review guidelines relating directly or indirectly towards faster implementation of projects under RIDF. He also suggested making the fund more responsive to each state's unique needs.

Conclusion

Kartikeya Misra, Director, DFS, summarized the key outcomes of the meeting and expressed gratitude towards all participants. The meeting was attended by various senior officials including Nabard Chairman Shaji KV and National Housing Board (NHB) Managing Director SK Hota. In conclusion, it is clear that there is a collective consensus on the importance of RIDF in shaping India’s rural economy and an urgent need for faster completion of pending projects to fully harness its potential.