Union Cabinet Approves the ‘Agriculture Infrastructure Fund’ on July 8, 2020

Central government’s scheme ‘Agriculture Infrastructure Fund’ gets approved by the Union cabinet headed by PMO India, Hon. Narendra Modi, on July 8^th, 2020. This scheme mainly aims providing financial assistance to Primary Agricultural Credit Societies (PACS), Marketing Co-operative societies, Farmer Producers Organizations (FPOs), etc. Financial assistance under this scheme is provided in the form of short term and medium-term loans. This scheme is applicable across the country.

Agriculture Infrastructure Fund Overview:

Scheme Objectives:

• The main objective of the scheme is to provide financial assistance/ support to the beneficiaries, so that they can invest in the rural projects aiming at post-harvest management infrastructure which includes activities after harvesting a crop like warehousing, cooling, packing the harvest, etc and community farming assets.
• It aims at improving the farm and farm related activities.

Read more Agriculture schemes

Benefits:

• This scheme enables provides loan facilities to the beneficiaries who apply for the same, through various banks and financial institutions.
• It also provides Interest subvention, which refers to that part of the interest amount which is borne by the government. Interest subvention amount under this scheme is from 3% to maximum 2 Cr.
• Collateral free credit guarantee is also provided to the eligible beneficiaries under this scheme.
• Investment and Financial support in projects for farm activities in rural areas will increase the rural employment opportunities.

List of Beneficiaries:

• Primary Agricultural Credit Societies (PACS),
• Marketing Co-operative societies,
• Farmer Producers Organizations (FPOs),
• Self Help Groups (SHGs)
• Multiple Co-operative Societies
• Agri-Entrepreneurs
• Joint Liability Groups (JLGs)
• Start-ups
• Infrastructure Providers

List of Loan Schemes

Key Points:

• Total amount of the scheme- Rs.1 Lakh Cr., will be disbursed/ paid out in 4 years- Rs. 10,000 Cr. have been sanctioned for this year and Rs. 30,000 Cr. in the remaining 3 years.
• The maximum interest subvention period under this scheme is 7 years.
• The Agri Infra Fund will be managed and through Management Information System (MIS). Monitoring of the fund will also be done from the same online platform.
• National, State and District level committees will be set for up for conducting the monitoring process.
• Faster loan approvals are available under this scheme.
• The repayment of loans taken may be done from 6 months to 2 years. It depends on the project and the bank/financial institution providing loan.