Agriculture Infrastructure Fund

Context 

The government has so far disbursed Rs 2,071 crore for 4,003 projects under the Agriculture Infrastructure Fund.

About Agriculture Infrastructure Fund 

• It is a  pan India Central Sector Scheme launched in the year 2020.
• Aim: To provide a medium – long term debt financing facility for investment in viable projects for post-harvest management Infrastructure and community farming assets through interest subvention and financial support.
• Duration: Extended to 13 years (FY2020 to FY2032).
• Intended beneficiaries: Primary Agricultural Credit Societies (PACS), Marketing Cooperative Societies, Farmer Producers Organizations (FPOs), Self Help Group (SHG), Farmers, Multipurpose Cooperative Societies, Agri-entrepreneurs, Startups, Aggregation Infrastructure Providers and Central/State agency or Local Body sponsored PPP Project.
• Finances: Rs.1 Lakh Crore will be provided by banks and financial institutions as loans to eligible beneficiaries.
  • All loans under this financing facility will have an interest subvention of 3% per annum up to a limit of Rs. 2 crores.

Benefits

• This interest subvention will be available for a maximum period of seven years.
• Credit guarantee coverage will be available for eligible borrowers from this financing facility under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan up to Rs. 2 crores. 
  • The fee for this coverage will be paid by the Government.
• In the case of FPOs, the credit guarantee may be availed from the facility created under the FPO promotion scheme of the Department of Agriculture, Cooperation & Farmers Welfare (DACFW).
• The moratorium for repayment under this financing facility may vary subject to a minimum of 6 months and a maximum of 2 years.

Source: BS