Rs 10,000 crore sanctioned for the current year
A new pan India Central Sector Scheme-Agriculture Infrastructure Fund has been approved by the Union Cabinet chaired by PM Narendra Modi, 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.
As per the scheme Rs one lakh crore will be provided by banks and financial institutions as loans to Primary Agricultural Credit Societies (PACS), Marketing Cooperative Societies, Farmer Producers Organizations (FPOs), Self Help Group (SHG), Farmers, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Startups, Aggregation Infrastructure Providers and Central/State agency or Local Body sponsored Public Private Partnership Project.
For the current year, Rs 10,000 crore has been set aside for disbursal, and the next three financial years will see disbursals of Rs. 30,000 crore each. Agri Infra fund will be managed and monitored through an online Management Information System (MIS) platform and qualified entities can apply for loan under the fund.
There will be an interest subvention of 3 percent per annum up to a limit of Rs. 2 crore for the loans which will be in force for a maximum period of seven years.
