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Agriculture Infrastructure Fund

  • Posted By
    10Pointer
  • Categories
    Economy
  • Published
    11th Aug, 2020
  • Prime Minister of India has recently launched the financing facility of 1 lakh crore rupees under the Agriculture Infrastructure Fund.
  • The scheme shall 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.
  • This is New Pan- India Central Sector Scheme.
  • Under the scheme, 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, Start-ups
    • Aggregation Infrastructure Providers
    • Central/State agency or Local Body sponsored Public-Private Partnership Project.
  • This financing facility will have interest subvention of 3% per annum up to a limit of Rs. 2 crores.
  • This subvention will be available for a maximum period of seven years.
  • 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 feedback.
  • The duration of the Scheme shall be from FY2020 to FY2029 (10 years).
  • The online platform will also provide benefits such as transparency of interest rates offered by multiple banks.