Guwahati: The North Eastern Development Finance Corporation Limited (NEDFi) has signed on for loans with the National Bank for Financing Infrastructure and Development (NaBFID) in a bid to boost economic development in the region.

Talking to Business North East, PVSLN Murty, Chairman and Managing Director (CMD) of NEDFi, shed light on the organization's mission, strategies, and upcoming projects. “We are signing an agreement with the infrastructure bank established by the centre as it is is giving long-term loans", Murty said, without further elaborating on the plans.

The NaBFID is headquartered in Mumbai and headed by K. V. Kamath, a former chairman of ICICI bank. Earlier, this year, the NEDFi signed another MoU - with the National Institute of Pharmaceutical Education and Research (NIPER) in Guwahati, Assam.

Looking ahead, NEDFi plans to collaborate with organizations like the Small Industries Development Bank of India (SIDBI) and seek funding from entities like the Japan International Cooperation Agency (JICA), Murty told BNE. "These partnerships will support NEDFi‘s efforts to expand its microfinance initiatives in underserved regions, ultimately aiming to alleviate financial challenges for individuals in remote areas", according to the CMD.

NEDFi leverages partnerships with various government entities, including chambers of commerce and financial institutions, to effectively execute its mandate. These collaborations facilitate entrepreneurship development, risk financing for industries, and support for small and medium enterprises across the region.

Established by the Government of India to provide development finance, NEDFi’s overarching goal is to promote economic growth in the NorthEast. Initially focusing on risk-taking industries like cement and steel, NEDFi has evolved its strategy to reach remote and underserved districts. It has also embraced sectors such as food processing, education, and healthcare to encourage local development and reduce dependency on external resources.

"Recognizing the dynamic nature of markets, NEDFi has adapted its focus to emerging sectors while actively collaborating with government agencies, chambers of commerce, and financial institutions", Murty said. "This collaborative approach enables NEDFi to efficiently fulfill its mandate and support entrepreneurship and industry growth in the region."

NEDFi’s primary revenue stream is derived from loan recoveries, supplemented by government loans, capital funds, and reinvestment of profits. "This financial model enables NEDFi to sustain its operations and continue its developmental initiatives", according to Murty.

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