The National Bank for Agriculture and Rural Development (NABARD) and Mahatma Phule Renewable Energy and Infrastructure Technology Limited (MAHAPREIT) have signed a Memorandum of Understanding (MoU) to jointly finance and promote green, climate-resilient infrastructure across rural India. The partnership, with an initial focus on Maharashtra, aims to strengthen villages, Panchayati Raj Institutions, and community-level infrastructure through clean energy solutions, biogas projects, and solar-powered facilities. This collaboration brings together NABARD’s rural development finance expertise with MAHAPREIT’s experience in renewable energy and sustainable infrastructure.
About the Two Organisations
NABARD: India’s Apex Rural Development Bank
NABARD was established on 12 July 1982 under the National Bank for Agriculture and Rural Development Act, 1981. It was formed by transferring the agricultural credit functions of the Reserve Bank of India (RBI) and the refinance functions of the then Agricultural Refinance and Development Corporation (ARDC). The institution was dedicated to the nation by the late Prime Minister Indira Gandhi on 5 November 1982.
Fully owned by the Government of India, NABARD functions under the Department of Financial Services in the Ministry of Finance. It is headquartered in Mumbai and operates through 31 Regional Offices across states and union territories, along with 415 District Development Managers at the district level. As of 31 March 2024, NABARD had a team of 2,232 professionals supported by 921 other staff members.
NABARD’s mandate covers providing and regulating credit for the promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts, and other rural economic activities. It serves as the apex financing agency for institutions providing investment and production credit for rural development. The institution also supervises Regional Rural Banks (RRBs), State Cooperative Banks, and District Central Cooperative Banks.
In recent years, NABARD has built a strong portfolio in climate finance. It was accredited as a National Implementing Entity (NIE) for the Adaptation Fund in July 2012 and later received accreditation from the Green Climate Fund (GCF). As of FY 2024, NABARD had sanctioned 40 climate change projects with a total financial assistance of ₹1,971.56 crore. Almost one-third of its cumulative disbursements are related to climate change adaptation and mitigation activities. The institution’s balance sheet size exceeded ₹9 lakh crore in FY 2024, marking a yearly growth rate of 13.6%.
MAHAPREIT: Maharashtra’s Green Infrastructure Arm
Mahatma Phule Renewable Energy and Infrastructure Technology Limited, commonly known as MAHAPREIT, is a Government of Maharashtra enterprise incorporated on 12 April 2021. It is a subsidiary of the Mahatma Phule Backward Class Development Corporation Ltd (MPBCDC), a state government undertaking.
MAHAPREIT operates across ten verticals, including Renewable Energy and Electric Vehicles (EV), Software Technology Parks and Data Centres, Infrastructure Technology Projects, Agro Processing Value Chain and Biofuels, Affordable Housing, Corporate Community Development, Environment and Climate Change, Energy Audit and Corrective Systems, Emerging Technology Areas, and Women Entrepreneurship.
The company is headquartered at the Bandra Kurla Complex in Mumbai. As per its FY 2025 financials, MAHAPREIT reported a revenue of ₹20.28 crore, reflecting a 301% year-on-year growth. The company’s flagship NAVYUG Scheme integrates various support mechanisms for MPBCDC beneficiaries, covering projects from energy audits and solar parks to EV charging stations and green concrete plants.
MAHAPREIT has also been active in the renewable energy sector. In June 2026, it invited bids for the selection of solar developers for 100 MW of behind-the-meter rooftop solar projects in Maharashtra under the renewable energy service company model. The company has established technical partnerships with entities like EESL (Energy Efficiency Services Limited) and has been declared an implementing agency for deposit works related to infrastructure in Maharashtra.
Priority Areas Under the MoU
The MoU outlines a comprehensive framework for identifying, developing, structuring, and financing sustainable infrastructure projects. Both organisations have identified several priority areas for the initial phase of collaboration.
Clean Energy and Decarbonisation
The partnership will focus on financing green energy and renewable power generation projects across villages and public institutions. Solar power systems, clean electricity solutions, and energy-efficient technologies will be deployed to reduce dependence on conventional fuels while lowering operating costs for public facilities.
A major thrust area is the decarbonisation of government buildings. Government offices, educational institutions, hospitals, and other public buildings will receive support for energy-efficient upgrades and renewable energy installations. This includes clean energy solutions for institutions under the Directorate of Technical Education (DTE), government hospitals, district hospitals, and other public service facilities serving rural communities.
The collaboration will also support the deployment of clean energy solutions for rural public institutions, aiming to make them energy self-sufficient while reducing their carbon footprint.
Biogas, Biomass, and Circular Economy
One of the most significant components of the partnership is the promotion of biogas and bioenergy generation using agricultural residues and other biomass resources. India generates approximately 500 million tonnes of agricultural waste annually, much of which is burned in open fields, contributing to severe air pollution. This initiative aims to convert farm waste into valuable energy resources, creating additional income opportunities for farmers while supporting the circular economy.
The collaboration will also finance projects related to the use of agricultural residues and biomass for energy production. This approach not only reduces environmental pollution but also provides farmers with an alternative revenue stream from crop waste that would otherwise be discarded or burned.
Solar Cold Storage and Rural Infrastructure
Another key area of collaboration is the financing of solar-powered micro cold storage facilities for village-level bodies. Post-harvest losses remain a major challenge for Indian agriculture, with perishable commodities like fruits, vegetables, dairy, and fishery products suffering significant wastage due to inadequate storage infrastructure.
Solar-powered cold storage facilities at the village level can help farmers preserve their produce, reduce post-harvest losses, and improve agricultural value chains. These facilities operate independently of the grid, making them particularly suitable for remote rural areas where electricity supply is unreliable.
The partnership will also support Gram Panchayat infrastructure development, rural public institutions, and water pumping schemes powered by clean energy. This includes strengthening the infrastructure of Panchayati Raj Institutions (PRIs) to improve governance and service delivery at the grassroots level.
Why This Matters for Rural India
India’s rural areas face a unique convergence of challenges: inadequate infrastructure, unreliable energy supply, climate vulnerability, and livelihood insecurity. Nearly 65% of India’s population lives in rural areas, yet these regions receive a disproportionately small share of institutional investment in clean energy and sustainable infrastructure.
Addressing the Energy Gap
Rural India continues to rely heavily on conventional energy sources, including diesel generators and grid electricity that is often unreliable. The NABARD-MAHAPREIT partnership addresses this gap by channelling climate finance directly to village-level projects. Solar-powered water pumping systems, rooftop installations on government buildings, and biogas plants can reduce rural dependence on fossil fuels while lowering energy costs for public institutions.
Strengthening Panchayati Raj Institutions
The explicit focus on Panchayati Raj Institutions (PRIs) is significant. PRIs are the backbone of grassroots governance in India, constitutionalised through the 73rd Constitutional Amendment Act of 1992. Strengthening their infrastructure with green technologies can improve service delivery, from water supply and waste management to healthcare and education. When Gram Panchayats have access to reliable clean energy, they can power streetlights, water purification systems, health centres, and digital infrastructure more effectively.
Climate Resilience and Farmer Livelihoods
Agriculture remains the primary occupation in rural India, and it is among the sectors most vulnerable to climate change. Erratic monsoons, rising temperatures, and extreme weather events threaten crop yields and farmer incomes. The partnership’s focus on biogas and biomass projects creates an alternative income stream for farmers by converting agricultural waste into energy. This not only supports the circular economy but also reduces the practice of stubble burning, which contributes to severe air pollution in parts of northern India.
Solar-powered cold storage facilities address another critical pain point. Post-harvest losses in India are estimated at ₹92,651 crore annually for fruits and vegetables alone. Village-level cold storage powered by solar energy can help farmers store perishable produce, fetch better prices, and reduce dependence on middlemen.
A Model for Other States
While the initial focus is on Maharashtra, the NABARD-MAHAPREIT model has the potential to be replicated across other states. Maharashtra’s experience with MAHAPREIT’s NAVYUG Scheme and its renewable energy projects can serve as a blueprint for other state governments looking to establish similar enterprises. NABARD’s nationwide network of 31 Regional Offices and its existing relationships with rural financial institutions position it well to scale this partnership beyond Maharashtra.
The Way Forward
The NABARD-MAHAPREIT partnership aligns with India’s broader climate commitments, including the target of achieving net-zero emissions by 2070 and the goal of installing 500 GW of non-fossil fuel energy capacity by 2030. It also supports the objectives of the National Action Plan on Climate Change (NAPCC), which emphasises the integration of climate concerns into development planning.
The collaboration is expected to move through identifiable phases. In the immediate term, the two organisations will focus on identifying and structuring projects in Maharashtra, drawing on MAHAPREIT’s experience in implementing renewable energy projects and NABARD’s expertise in rural development finance. As the model matures, the partnership can expand to other states where NABARD already has a strong presence.
Success will depend on the ability of both organisations to mobilise adequate financing, build capacity at the grassroots level, and ensure that projects are implemented efficiently. NABARD’s experience in managing large-scale rural development programmes, combined with MAHAPREIT’s technical capabilities in renewable energy and infrastructure, provides a solid foundation for this collaboration.
The partnership also has implications for India’s climate finance architecture. As developing countries seek to mobilise trillions of dollars for climate action, innovative partnerships between development finance institutions and state-level enterprises can demonstrate how climate finance can be channelled effectively to the last mile. If successful, the NABARD-MAHAPREIT model could inspire similar collaborations in other sectors and regions, creating a new template for public-sector climate finance in India.
Key Takeaways
- NABARD was established on 12 July 1982 under the NABARD Act, 1981 and is fully owned by the Government of India, headquartered in Mumbai.
- MAHAPREIT is a Government of Maharashtra enterprise incorporated on 12 April 2021, a subsidiary of the Mahatma Phule Backward Class Development Corporation Ltd (MPBCDC).
- The MoU focuses on financing green energy, decarbonisation of government buildings, biogas and biomass projects, solar-powered micro cold storage, and Gram Panchayat infrastructure.
- NABARD was accredited as a National Implementing Entity for the Adaptation Fund in July 2012 and later received accreditation from the Green Climate Fund (GCF).
- The partnership aligns with India’s target of achieving net-zero emissions by 2070 and installing 500 GW of non-fossil fuel energy capacity by 2030.
- The 73rd Constitutional Amendment Act of 1992 constitutionalised Panchayati Raj Institutions, which are a key focus area of this collaboration.
