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 to finance and promote green, climate resilient and sustainable infrastructure across rural India. The agreement will concentrate on strengthening villages, Panchayati Raj Institutions and community level infrastructure in Maharashtra. The partnership is intended to support project identification, development and financing with an emphasis on climate resilience and rural prosperity.

The collaboration combines NABARD's expertise in rural development finance, climate finance and green infrastructure financing with MAHAPREIT's experience in climate focused infrastructure development. Together the organisations will seek to structure and fund sustainable projects that improve quality of life in villages and enhance local adaptive capacity. The plan envisages financing models tailored to public institutions and gram panchayat level bodies.

MAHAPREIT previously entered a joint venture with NLC India Renewables Limited (NIRL), a subsidiary of NLC India Limited, to develop up to 2,000 MW of renewable projects — including solar, wind, hybrid, floating solar, battery energy storage systems (BESS), pumped storage and solar parks — with an initial focus on 500 MW and a target to scale to 5,000 MW in Maharashtra. The joint venture company will have an equity split of 74 per cent for NIRL and 26 per cent for MAHAPREIT. MAHAPREIT has also agreed with NTPC Green Energy Limited (NGEL), a subsidiary of NTPC Limited, to develop 10 GW of renewable parks and projects in Maharashtra and other states. These prior partnerships will inform financing and delivery under the new memorandum.

Initial priority areas include green energy, decarbonisation of government buildings, rural public institution infrastructure and water pumping schemes. The organisations will support biogas and bioenergy generation from agricultural residues and other biomass resources to create income opportunities for farmers and promote the circular economy. NABARD's chairman indicated that the bank is committed to working with like minded stakeholders and views the memorandum as a significant step towards a cleaner and greener rural India.