Finance Minister Nirmala Sitharaman is expected to announce the launch of a Rs. 1,000 crore fund by Nabventures, a subsidiary of Nabard, aimed at supporting startups in agriculture and allied sectors focused on climate-smart farming.

Officials stated that Nabventures Fund-II will prioritize regional pilot projects that showcase solutions to mitigate the effects of climate change. The fund will provide financial assistance to both early-stage and mid-stage startups engaged in climate-resilient agricultural initiatives.

The fund is projected to be launched in the financial year 2026, with the goal of fostering innovation in the rural economy while emphasizing climate resilience. Specific details regarding its structure and implementation will be finalized soon.

Nabventures Fund-I, a venture capital fund introduced in 2019, had a corpus of Rs. 598 crore dedicated to investing in Agri-tech, food-tech, Agri-fintech, and rural tech startups in early and mid-stages.

According to a Nabard report on the impact of Fund-I, portfolio companies have delivered significant results. Jai Kisan, for example, facilitated loans worth Rs. 3,000 crore for the food and agri-business value chain across 11 states.

Meanwhile, Krishitantra has provided rapid soil testing for over one lakh farmers and is an approved partner for the agriculture ministry’s digital soil health card scheme.

Recently, Nabard Chairman Shaji KV emphasized the importance of developing solutions tailored to India's specific climate challenges. He highlighted the need for homegrown innovations that demonstrate the potential of climate-focused agricultural activities in addressing environmental concerns.

The Rs. 750 crore funds under the "Agri-SURE" scheme will have contributions of Rs. 250 crore each from the agriculture ministry and Nabard, while the remaining Rs. 250 crore will be raised from institutions, including private investors.