Agri Infrastructure Fund guidelines
On July 8, 2020 The Union Cabinet has given its approval to a countrywide Central Sector Scheme for financing facility under the ‘Agriculture Infrastructure Fund’. On August 9, 2020, Prime Minister Narendra Modi launched this scheme. The time limit of this scheme will be from the financial year 2020-21 to the financial year 2029-30 (10 years).
purpose of agriculture infrastructure fund
- To develop infrastructure for post harvest management of food grains through incentives and financial assistance in order to improve agricultural infrastructure in the country.
- To provide funding for community farming assets to increase yields.
- To encourage farmers and agricultural enterprises to increase investment and adopt modern technologies through interest subvention and loan guarantees.
- To further strengthen the infrastructure in the agriculture sector, so that the access of farmers to the big markets of the country can be ensured.
key facts of agriculture infrastructure fund
- Under this scheme, even if a person is already getting the benefit of any scheme, he can become its beneficiary.
- Under this financing facility, interest subvention of 3 per cent will be provided on all types of loans up to a limit of Rs 2 crore per annum, which will be available for a maximum period of 7 years.
- In addition, ‘Credit Guarantee Coverage’ will also be available to eligible borrowers through this financing facility under the ‘Credit Guarantee Fund Trust for Micro and Small Enterprises’ (CGTMSE) scheme for loans up to Rs.2 crore.
- The fee for this coverage will be paid by the government.
- The total outflow in the form of budgetary support from the Government of India would be Rs 10,736 crore.
- The moratorium for repayment under this financing facility can be for a minimum of 6 months and a maximum of 2 years.
- The Agriculture Infrastructure Fund will be managed and monitored through an online Management Information System (MIS) platform.
analysis of agriculture infrastructure fund
Through this scheme started by the central government, farmers will be able to keep the crop safe till they get the right price after harvesting the crop. The development of such infrastructure would also address the vagaries of nature, regional disparities, development of human resource and utilize the full potential of our limited land resource.Read these also:-
