Nabard has just agreed with the Gujarat govt to launch a massive financial assistance program for various development projects in the state involving an amount of Rs 25 thousand crore.
Cooperative and regional rural banks alone will be provided with Rs. 12 thousand crore. According to Munkesh Agrawal GM Nabard Gujarat region, the bank will support cooperative banks with Rs 1,7000 crore for their various lending activities.
This is expected to give a fillip to the cooperative banking sector in Gujarat, said Mr. Agrawal. The Nabard will also spend Rs 2000 crore on strengthening dairy unions and federations in Gujarat.
The Nabard’s munificent financial gift to Gujarat appears to be prompted by political considerations because Gujarat happens to be Prime Minister Modi’s home state, a cooperative source who declined to be named said.