Agriculture Infrastructure Fund

• 29 Apr 2021

Why in News

Agriculture Infrastructure Fund has crossed the eight thousand crore mark. The investment will give a boost to several agricultural projects which will unlock value for farmers across the country.

Key Points

• It is a central sector scheme
• Aim:
  
  • To provide medium - long term debt financing facility for investment in viable projects for post-harvest management Infrastructure and community farming assets.
  • The funds will be provided for setting up of cold stores and chains, warehousing, grading and packaging units, e-marketing points linked to e-trading platforms, besides PPP projects for crop aggregation sponsored by central/state/local bodies.
• Duration: Financial Year 2020 to 2029.
• Features:
  
  • Eligible Beneficiaries:
    
    • They are Farmers, FPOs, PACS, Marketing Cooperative Societies, SHGs, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Start-ups, and Central/State agency or Local Body sponsored Public-Private Partnership (PPP) Projects.
  • Financial Support: Rs. 1 Lakh Crore will be provided by banks and financial institutions as loans to eligible beneficiaries.
    
    • Moratorium for repayment may vary subject to minimum of 6 months and maximum of 2 years.
  • Interest Subvention: Loans will have interest subvention of 3% per annum up to a limit of Rs. 2 crore. This subvention will be available for a maximum period of seven years.
  • CGTMSE Scheme: A credit guarantee coverage will be available for eligible borrowers from the scheme under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan up to Rs. 2 crore.

Central Sector Scheme

• These schemes are 100% funded by the Central government.
• Implemented by the Central Government machinery.
• Formulated on subjects mainly from the Union List.
• E.g.: Bharatnet, Namami Gange-National Ganga Plan, etc.

Source: PIB