Cabinet gives nod to setting up of Rs 1 Lakh Crore Agriculture Infrastructure Fund

Cabinet gives nod to setting up of Rs 1 Lakh Crore Agriculture Infrastructure Fund
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Cabinet gives nod to setting up of Rs 1 Lakh Crore Agriculture Infrastructure Fund

Highlights

The Union Cabinet today gave its approval to a new pan India Central Sector Scheme, Agriculture Infrastructure Fund.

The Union Cabinet today gave its approval to a new pan India Central Sector Scheme, Agriculture Infrastructure Fund. The scheme will provide a medium and 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.

The approval was granted at a Cabinet meeting chaired by Prime Minister Narendra Modi.

Under the scheme, Rs 1 lakh crore will be provided by banks and financial institutions as loans to Primary Agricultural Credit Societies, Marketing Cooperative Societies, Farmer Producers Organizations, Self Help Group, Farmers, Startups and Centre and State agency among others.

The duration of the Scheme will be for ten years from the fiscal year 2020 to 2029. Under it, loans will be disbursed in four years starting with the sanction of Rs 10,000 crore in the current year and Rs 30,000 crore each in the next three financial years.

All loans under this financing facility will have interest subvention of 3 per cent per annum up to a limit of Rs 2 crore and this subvention will be available for a maximum period of seven years. Further, credit guarantee coverage will be available for eligible borrowers from this financing facility under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan up to Rs 2 crore.

The Project by way of facilitating formal credit to farm and farm processing-based activities is expected to create numerous job opportunities in rural areas.

Agriculture Infrastructure fund will be managed and monitored through an online Management Information System (MIS) platform. It will enable all the qualified entities to apply for a loan under the fund. The National, State and District level Monitoring Committees will be set up to ensure real-time monitoring and effective feedback.


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