Cabinet allows expansion of Agricultural Infrastructure Fund (AIF)
The Cabinet has approved the expansion of the credit scheme at subsidised interest rate under the ₹1 lakh crore Agriculture Infrastructure Fund (AIF) to create more farm-related infrastructure facilities such as warehouses, cold storage and others in the country.
AIF will now allow all eligible beneficiaries of scheme for creation of infrastructure covered under “viable projects for building community farming assets”, the government said in a statement. “This move is expected to facilitate the development of viable projects that will enhance community farming capabilities, thereby improving productivity and sustainability in the sector,” it said.
The Cabinet has also approved credit from AIF may be availed to include “integrated primary secondary processing projects” in list of eligible activities. However, standalone secondary projects would not be eligible to avail credit from AIF.
The government has also allowed the convergence of Component-A of PM-KUSUM with AIF for farmers/group of farmers/farmer producer organisations (FPOs)/cooperatives/panchayats.
The Cabinet has approved the “progressive expansion in Central sector scheme of financing facility under the AIF to make it more attractive, impactful and inclusive,” the statement said. These initiatives aim at expanding the scope of eligible projects and integrate additional supportive measures to foster a robust agricultural infrastructure ecosystem, it added.
Credit guarantee
In addition to CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises), the government has extended AIF credit guarantee coverage of FPOs through the NABSanrakshan Trustee Company. This expansion of credit guarantee options is intended to enhance the financial security and creditworthiness of FPOs, thereby encouraging more investments in agricultural infrastructure projects, the statement said.
Since its launch in 2020, the AIF scheme has been instrumental in supporting creation of 6,623 warehouses, 688 cold stores and 21 silos projects, resulting in additional storage capacity of about 500 lakh tonnes (lt) – 465 lt of dry storage and 35 lt of cold storage – in the country, the Agriculture Ministry said, adding 18.6 lt of foodgrains and 3.44 lt of horticulture produce can be saved annually.
“About ₹47,575 crore has been sanctioned for 74,508 projects under AIF till date. These sanctioned projects have mobilised an investment of ₹78,596 crore in the agriculture sector, out of which ₹78,433 crore has been mobilised from private entities,” the statement said. Besides, these projects have helped in generating more than 8.19 lakh rural employment opportunities in the agriculture sector.