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NABARD and MAHAPREIT Sign MoU to Finance Green Infrastructure and Clean Energy Projects in Rural India

The National Bank for Agriculture and Rural Development (NABARD) and Mahatma Phule Renewable Energy and Infrastructure Technology Ltd. (MAHAPREIT) have signed a Memorandum of Understanding (MoU) to promote and finance climate-resilient infrastructure and clean energy projects across rural India. The partnership will initially focus on Maharashtra, supporting villages, Panchayati Raj Institutions (PRIs) and public infrastructure with sustainable development initiatives aimed at improving rural livelihoods while advancing the country's clean energy transition.

The collaboration combines NABARD's expertise in rural development financing, climate finance and infrastructure funding with MAHAPREIT's experience in planning and implementing renewable energy and sustainable infrastructure projects. Together, the two organisations will identify, structure and facilitate financing for projects that enhance climate resilience, improve public services and promote environmentally sustainable economic growth in rural communities.

As part of the initial phase, the partners have identified several priority areas, including renewable energy deployment, decarbonisation of government buildings, modernisation of Gram Panchayat infrastructure, rural public institutions and water pumping systems. The programme also envisions installing clean energy solutions across institutions such as government hospitals, district hospitals and Directorate of Technical Education (DTE) institutes, helping reduce energy costs while improving the reliability of public services in rural areas.

The MoU also places strong emphasis on promoting the bioenergy and circular economy. Proposed initiatives include financing projects that utilise agricultural residues and biomass for biogas and bioenergy production, creating additional income opportunities for farmers while addressing the challenge of crop residue management. In addition, the collaboration will support the deployment of solar-powered micro cold storage facilities for village-level bodies, enabling better preservation of agricultural produce, reducing post-harvest losses and strengthening rural value chains.

The partnership aligns with the Government of India's broader focus on sustainable rural development and clean energy adoption. Expanding renewable energy infrastructure in villages can help reduce dependence on fossil fuels, improve energy access and support climate adaptation, while decentralised solutions such as rooftop solar, biomass energy and solar-powered irrigation systems contribute to lower operating costs for local institutions and communities.

NABARD has played a pivotal role in financing rural infrastructure, agriculture and climate-resilient development through initiatives such as the Rural Infrastructure Development Fund (RIDF) and various climate adaptation programmes. Collaborations with specialised agencies such as MAHAPREIT are expected to accelerate the implementation of green infrastructure projects by combining financial support with technical expertise and project execution capabilities.

The agreement also complements India's long-term objectives of achieving 500 GW of non-fossil fuel-based installed electricity capacity by 2030, reducing greenhouse gas emissions and promoting sustainable economic development in rural areas. By integrating renewable energy, energy-efficient public infrastructure and climate-resilient technologies at the grassroots level, the NABARD-MAHAPREIT partnership is expected to strengthen rural infrastructure while contributing to national energy security, environmental sustainability and inclusive economic growth.