The Agriculture Infrastructure Fund, an initiative in India, has recently achieved a milestone by crossing the eight thousand crore mark. This significant achievement is expected to fuel numerous agricultural projects, unlocking considerable value for farmers all over the country.
Overview of the Agriculture Infrastructure Fund
The Agriculture Infrastructure Fund is a central sector scheme designed to offer medium to long term debt financing facility with the primary goal of funding viable projects. These projects encompass post-harvest management infrastructure as well as community farming assets, with an emphasis on improving the overall agricultural ecosystem.
The funds allocated under this scheme will be utilized for the establishment of cold stores and chains, warehousing units, grading and packaging units, and e-marketing points which are associated with e-trading platforms. Additionally, the fund will bolster Public-Private Partnership (PPP) projects for crop aggregation, sponsored by central, state, or local bodies.
The scheme, which began during the Financial Year 2020, is projected to continue until 2029.
Features and Benefits of the Scheme
The Agriculture Infrastructure Fund is intended for a wide range of beneficiaries, including farmers, Farmer Producer Organisations (FPOs), Primary Agricultural Credit Societies (PACS), Marketing Cooperative Societies, Self Help Groups (SHGs), Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, start-ups, and Central/State agency or Local Body sponsored PPP Projects.
Under this scheme, banks and financial institutions will provide Rs. 1 Lakh Crore as loans to eligible beneficiaries. The scheme offers a flexible repayment structure, with a minimum moratorium of 6 months and a maximum of 2 years.
Furthermore, the scheme provides an interest subvention of 3% per annum up to a limit of Rs. 2 crore, available for a maximum period of seven years, easing the financial burden on the borrowers.
Credit Guarantee for Eligible Borrowers
One of the distinguishing features of this scheme is the provision for credit guarantee coverage for eligible borrowers. Under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme, a loan up to Rs. 2 crore can be guaranteed, building confidence among the beneficiaries and encouraging participation in the scheme.
About Central Sector Schemes
Central sector schemes, such as the Agriculture Infrastructure Fund, are fully funded by the Central government and implemented through the Central Government machinery. These schemes are generally formulated on subjects primarily from the Union List. Other examples of central sector schemes include Bharatnet, Namami Gange-National Ganga Plan, and others.
The source of this information is the Press Information Bureau (PIB). The success of the Agriculture Infrastructure Fund reflects the government’s unwavering commitment to improve the country’s agricultural infrastructure, thereby benefiting farmers and strengthening the overall economy.