Cabinet approves Rs 1 Lakh Crore ‘Agriculture Infrastructure Fund’
- The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval to a new pan India Central Sector Scheme-Agriculture Infrastructure Fund.
- Total Outlay: Rs 1 Lakh Crore
- Duration: 10 Years, from FY2020 to FY2029
- Purpose: Provide medium – long term debt financing facility to entrepreneurs, start-ups, agri-tech players and farmer groups for setting up infrastructure and logistics facilities through interest subvention and financial support.
- Beneficiaries: 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, Startups, Aggregation Infrastructure Providers and Central/State agency or Local Body sponsored Public Private Partnership Project
- Loan Disbursement Stages: 4 Years. Rs. 10,000 crore will be disbursed in the current year (2020-21) and Rs. 30,000 crore each in next three financial years.
- Interest subvention: 3% per annum on loan up to a limit of Rs. 2 crore for a maximum period of seven years
- Credit guarantee coverage: Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan up to Rs. 2 crore.
- Agri Infra 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 feed-back.