Recently, the Union Cabinet has approved certain modifications in the Central Sector Scheme of Financing Facility under the Agriculture Infrastructure Fund. Launched in 2020 as part of the Rs. 20 lakh crore stimulus package announced in response to the Covid-19 crisis, this scheme provides medium-to-long-term debt financing for investment in viable projects related to post-harvest management infrastructure and community farming assets.
Primary Aims of the Scheme
The main goal of this scheme is to enable the setting up of essential facilities like cold stores and chains, warehousing, grading and packaging units, alongside e-marketing points connected to e-trading platforms. Furthermore, the scheme also supports PPP (Public Private Partnership) projects for crop aggregation sponsored by central, state, or local bodies.
Extended Duration of the Scheme
The duration of this funding scheme has been extended until 2032-33, which makes it a 13-year long program.
Eligibility and Beneficiaries
The scheme encompasses a wide array of beneficiaries. They include Farmers, Farmer Producer Organizations (FPOs), Primary Agricultural Credit Society (PACS), Marketing Cooperative Societies, Self Help Groups (SHGs), Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Start-ups, and Central or State agency or Local Body sponsored PPP Projects. Moreover, the eligibility has been expanded to include State agencies, Agricultural Produce Marketing Committees (APMCs), federations of cooperative organizations, FPOs, and SHGs.
Financial Support Details
Under this scheme, banks and financial institutions will provide Rs. 1 Lakh Crore as loans to eligible beneficiaries. The moratorium for repayment can vary, subject to a minimum of six months and a maximum of two years.
Interest Subvention
Loans under this scheme will feature an 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.
Details on CGTMSE Scheme
In addition to the above benefits, a 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 loans of up to Rs. 2 crore.
Scheme Management
The funding will be managed and monitored via an online Management Information System (MIS) platform. This will allow all qualified entities to apply for loans under this scheme. To ensure this, National, State and District level monitoring committees will be established to oversee real-time monitoring and effective feedback.