Cabinet gives nod to setting up of One Lakh Crore Rupees Agriculture Infrastructure Fund

Cabinet gives nod to setting up of One Lakh Crore Rupees Agriculture Infrastructure Fund

The new Central Sector Scheme, ‘Agriculture Infrastructure Fund’ has received the approval of the Union Cabinet on 8 July 2020 and will be implemented across the country.

Key Points:

• Under the scheme, a long term and medium term debt financing facility will be provided by the government for investment in feasible projects.
• The projects will include community farming assets and post-harvest management Infrastructure, to which the facility will be extended via financial support and interest subvention.
• The Banks and financial institutions will provide a loan of Rs.1 lakh crore under the scheme to Central and State agencies, Farmer Producers Organizations, Farmers, Marketing Cooperative Societies, Primary Agricultural Credit Societies, Self Help Group and Startups.
• The scheme has been set for a time period of ten years from the FY 2020 to 2029. Under the scheme loans will be distributed in four years, and the initial amount that will be sanctioned will be Rs.10 thousand crore in 2020 and Rs.30 thousand crore each in the upcoming three financial years.
• The loans will have an interest subvention of 3 percent annually till an upper limit of Rs2 crore and will be available for a maximum time period of 7 years.
• The Agri Infra fund will be monitored and managed via an online Management Information System (MIS).