Part of: GS Prelims and GS -II – Policies and interventions
In news: Some modifications were approved by the Union Cabinet in Central Sector Scheme of Financing Facility under ‘Agriculture Infrastructure Fund’.
The modifications in the Scheme will help to achieve a multiplier effect in generating investments while ensuring that the benefits reach small and marginal farmers.
What is Agriculture Infrastructure Fund?
It is a Central Sector Scheme under Union Ministry of Agriculture to inject formal credit into farm and farm-processing based activities.
It is a part of the over Rs. 20 lakh crore stimulus package announced in response to the Covid-19 crisis.
Aim: To provide medium – long term debt financing facility for investment in viable projects for post-harvest management Infrastructure and community farming assets.
The funds will be provided for setting up of cold stores and chains, warehousing, silos, assaying, grading and packaging units, e-marketing points linked to e-trading platforms and ripening chambers, besides PPP projects for crop aggregation sponsored by central/state/local bodies.
Duration: Financial Year 2020 to 2029.
Target Beneficiaries:
Farmers, PACS, Marketing Cooperative Societies, FPOs, SHGs, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Startups, and Central/State agency or Local Body sponsored Public-Private Partnership Projects.
Features:
Financial Support: Rs. 1 Lakh Crore will be provided by banks and financial institutions as loans to be provided for Agriculture Infrastructure projects.
Interest Subvention: Loans will have 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.
CGTMSE Scheme: A credit guarantee coverage will be available for eligible borrowers from the scheme under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan up to Rs. 2 crore.
Management: The fund will be managed and monitored through an online Management Information System (MIS) platform.
The National, State and District level monitoring committees will be set up to ensure real-time monitoring and effective feed-back.
