AGRICULTURE
INFRASTRUCTURE FUND - AGRICULTURE
News: Explained Ideas: What ails with the
Agriculture Infrastructure Fund?
What's
in the news?
●
PM Modi launched the Rs 1 lakh crore
Agriculture Infrastructure Fund (AIF) to be used over the next four years.
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.
Significance:
●
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.