This blog contains a descriptive overview of a recently introduced centrally sponsored scheme, Agriculture Infrastructure Fund (AIF) scheme, which aims to encourage the development in agriculture sector by mobilising the funds into this sector. Through these continues efforts Indian Government tries to uplift the Indian agriculture.
Here we have mentioned the Introduction, eligibility and other major points for the scheme:
Introduction:
• The scheme was firstly introduced in 2020 by Honourable Prime Minister Shree Narendra Modi for transforming picture of the Indian agriculture. This scheme brings an aim to establish a well-funded facility for the projects of post-harvest management infrastructure and community farming assets.
• It provides incentives and medium to long-term financial support for the improvement of Indian agriculture infrastructure. In its future goals, scheme will be allocating Rs. 1 lakh crore for the agri infra development with the help of banks and financial institutions till 2025-26.
• The financial facility is provided to Agriculture Infrastructure Projects at farm gate and aggregation points to agri entrepreneurs, farmers, primary Agricultural Cooperative Societies, Farmers Producer Organizations, Start-ups, state agencies, state sponsored Public Private partnerships, etc.
• Under the scheme, beneficiaries will get a 3% interest subvention on loans up to Rs. 2 crores with a maximum repayment period of 7 years. Apart from this, the scheme covers the reimbursement of credit guarantee fees paid by banks.
• This financing is done through scheduled commercial banks, scheduled cooperative banks, Regional Rural Banks (RRBs), Small Finance Banks, Non-Banking Financial Companies (NBFCs) and National Cooperative Development Corporation (NCDC).
• The duration of the scheme would be from FY2020 to FY2032.
What type of projects are covered under the scheme?
• The AIF scheme covers post-harvest management projects like supply chain services including e-marketing platforms, warehouses, silos, pack-houses, assaying units, sorting & grading units, cold chain, logistics facilities, primary processing centres, ripening chambers and other viable projects for building community farming assets such as organic input production, bio stimulant production units, infrastructure for smart and precision agriculture, supply chain infrastructure for clusters of crops including exports clusters etc.
Agri Infrastructure supported till date:
Note: LMT is Lakh Metric Tonnes
Expansion of the scheme:
• As the scheme brought a significant improvement in the infrastructure of agri projects so Indian government has expanded the Agriculture Infrastructure Fund (AIF) scheme. The expansion was announced on August 28, 2024 by Prime Minister Narendra Modi.
• This expansion is done to make AIF more feasible, impactful and improved. This step surely shows the commitment of Government towards strengthening the agricultural system by providing better post-harvest facilities.
Particulars Description
Viable Farming Assets Infrastructure development for viable projects which improves community farming capabilities, potential improving productivity and sustainability in agri sector
Integrated Processing Projects Integrated primary & secondary processing projects.
PM KUSUM Component (Integration) Getting together Component-A of the PM-KUSUM scheme & AIF. This aims to promote sustainable clean energy solutions alongside agricultural infrastructure development.
Enhanced Credit Guarantee Coverage Along with existing credit guarantee fund trust for Micro and Small Enterprises, it now covers FPOs through the NAB Sanrakshan Trustee Company Pvt. Ltd.
Who are eligible?
• The applicant will be having 25 projects in various locations and each project is eligible for loan up to Rs.2 Crores in the interest of 3% per annum under the scheme. The subvention will be available for a maximum of 7 years.
• However, it is mentioned that, it is mandatory for borrowers to contribute a minimum 10% of total project cost irrespective of available capital subsidy.
• Multiple projects in one location are also eligible with an overall cap of Rs. 2 crores.
Key Notes:
• The moratorium for the repayment under this financing facility may vary, subject to a minimum of 6 months and a maximum of 2 years.
• SC/ST entrepreneurs (16% for SC and 8% for ST) should get 24% of the total grants of the scheme.
• Lending institution are advised to ensure an adequate covering of women & weaker segments entrepreneurs of the society.
• Credit guarantee coverage will be available for eligible borrowers from this financing facility under the 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.
Significance of the AIF Scheme:
• It helps to generate more than 8.19 lakh rural employment opportunities in the agri sector.
• Further, this expansion will bring positive growth, more productivity, increased farm incomes & contribution to the environmental sustainability in the country.
• This step also shows the commitment of Indian government towards agricultural development in the country.
Applicants can register by their mobile number and Aadhaar number by using the registration link: https://agriinfra.dac.gov.in/Home/BeneficiaryRegistration
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