Agriculture Infrastructure Fund Scheme:- The Government of India has introduced a range of schemes aimed at delivering diverse benefits to the agricultural sector. These initiatives encompass financial assistance and infrastructure development for farmers. One such recent program is the Agriculture Infrastructure Fund Scheme. This article aims to comprehensively inform you about this scheme, offering a detailed overview of its objectives and benefits. By reading this article, you will gain a comprehensive understanding of the Agricultural Infrastructure Fund Scheme in India.
Agriculture Infrastructure Fund Scheme 2023
As you may already know, agriculture and related activities serve as the primary source of income for 58% of India’s total population. The majority, approximately 85%, of these individuals are small-scale farmers who cultivate less than 2 hectares of land. Unfortunately, these farmers often face significant income challenges. In response to this issue, the government has initiated the Agriculture Infrastructure Fund Scheme.
This program offers a long-term debt financing facility designed to support viable projects related to post-harvest infrastructure and community farming assets. The beneficiaries of this funding include farmers, agricultural entrepreneurs, startups, and others involved in the agricultural sector. The scheme comprises three key components: subvention cost, credit guarantee cost, and the administration cost of the Project Management Unit (PMU).
Objective Of the Agriculture Infrastructure Fund Scheme
The primary goal of the Agriculture Infrastructure Fund Scheme is to extend a long-term debt facility to support investments in viable projects focused on post-harvest management infrastructure and community farming assets. This support is channelled through incentives and financial assistance, with the aim of enhancing the agricultural sector in the country.
This scheme’s benefits will be accessible to farmers, agricultural entrepreneurs, startups, and more. By implementing this initiative, the living standards of farmers will see an uplift, leading to greater self-sufficiency among them. The enhanced infrastructure will also bolster farmers’ income, contributing to an overall improvement in the nation’s economy, considering that a significant portion of India’s population is engaged in agriculture.
Details Of the Agriculture Infrastructure Fund Scheme
| Name Of The Scheme | Agriculture Infrastructure Fund Scheme |
| Launched By | Government Of India |
| Beneficiary | Citizens Of India |
| Objective | To Provide Funding For Agriculture And Allied Activities |
| Official Website | https://agriinfra.dac.gov.in/ |
| Year | 2023 |
Main Features Of The Agriculture Infrastructure Fund Scheme
- Convergence with Government Schemes: This scheme will align with both central and state government initiatives.
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Project Management Support: The project management unit will offer guidance and assistance in project preparation.
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Size of Financial Facility: The scheme has a substantial financial allocation of 1 lakh crore.
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Credit Guarantee: Loans can be guaranteed up to Rs 2 crore.
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Interest Subvention: The government will provide an interest subvention of 3% per annum, limited to 2 crores per project.
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Lending Rate Cap: There will be a cap on lending rates to ensure that the interest subsidy reaches the intended beneficiaries.
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Multi-Location Projects: Eligible entities can propose projects in different locations, with all such projects being eligible for the scheme up to a loan amount of 2 crore, provided each project has a separate local government directory code.
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Interest Subvention Duration: Interest subvention will be available for a maximum period of 7 years.
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Moratorium Period: The moratorium for payment under the financing facility can vary but must adhere to a minimum of 6 months and a maximum of 2 years.
Implementation Period Of The Scheme
- The timeline for the implementation of this scheme is from 2020-21 to 2032-33.
- Loan disbursements under this scheme are set to be completed within 6 years.
- In the financial year 2020, projects totalling approximately ₹4000 crores were approved.
- The government plans to disburse the remaining balance of ₹96000 crores in the upcoming years.
- ₹16000 crores will be disbursed in 2021-22, and an additional ₹20000 crore will be disbursed over the subsequent 4 years, spanning from 2022-23 to 2025-26.
- The repayment period for the financing facility is a maximum of 7 years, which includes a 2-year moratorium period.
Components Of The Agriculture Infrastructure Fund Scheme
Interest Subvention Cost: Within this aspect of the scheme, a 3% interest subvention will be granted annually, up to a maximum cap of 2 crores. The government is committed to providing this subvention for a maximum period of 7 years. The extent of funding allocated to private entrepreneurs will be determined by the National Monitoring Committee.
Credit Guarantee Cost: Through the Credit Guarantee Fund Trust for Micro and Small Enterprises, credit guarantee coverage will be extended to eligible borrowers, with a maximum limit of Rs 2 crore. The expenses associated with this coverage will be borne by the government.
Administration Cost of PMU: The Project Management Unit (PMU) support at both the Central and state levels will be facilitated by the Farmer Welfare Programs Implementation Society under DSCFW. To assist beneficiaries, gaps in the supply chain will be addressed, ensuring that target projects are developed and viable project reports are prepared.
Eligible Projects Under the Agriculture Infrastructure Fund Scheme
Post Harvest Management Project
- Supply chain services which include an e-marketing platform
- Warehouses
- Silos
- Pack houses
- Assaying units
- Sorting and grading units
- Cold chains
- Logistic facilities
- Primary processing centres
- Ripening chambers
Viable Projects for Building Community Farming Assets Including
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Organic Input Production: Initiatives related to the production of organic inputs.
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Biostimulant Production Units: Establishing units for the production of biostimulants.
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Smart and Precision Agriculture Infrastructure: Building infrastructure to support smart and precision agriculture practices.
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Supply Chain Infrastructure for Crop Clusters: Projects aimed at developing supply chain infrastructure for specific crop clusters, including those intended for export.
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Public-Private Partnerships in Community Farming and Post-Harvest Management: Projects promoted by central, state, or local governments and their associated agencies under public-private partnerships, focusing on community farming assets and post-harvest management.
Size of Financing Facility and Eligible Beneficiary
- Banks will extend a loan amounting to Rs 1 lakh crore to various entities, including Primary Agriculture Credit Societies, Marketing Cooperative Societies, Farmer Producer Organizations, Self-Help Groups, Farmers Joint Liability Groups, Multipurpose Cooperative Societies, Agricultural Entrepreneurs, Startups, and Public-Private Partnership projects sponsored by Central or State agencies and local bodies. Additionally, State Agencies, Agriculture Produce Market Committees, National and State Federations of Cooperatives, and more are eligible beneficiaries.
- Agriculture Produce Market Committees (APMCs) operating regular markets for agricultural and allied sector produce, including fisheries, are also eligible for this scheme.
- Preference will be given to PACS that have adopted digitalization in their operations under this scheme.
Number Of Projects Per Entity Eligible Under The Scheme
- The government will offer interest subvention for loans up to 2 crores for a single location.
- If an eligible entity initiates projects in multiple locations, all these projects will be eligible for loans of up to Rs 2 crore under the scheme.
- For private sector entities, a maximum limit of 25 such projects is set.
- However, this 25-project limit does not apply to state agencies, national and state cooperative federations, federations of Farmer Producer Organizations (FPOs), and federations of Self-Help Groups (SHGs).
- Agriculture Produce Market Committees (APMCs) are eligible for multiple projects within their designated market area.
- In such instances, interest subvention for loans up to Rs 2 crore will be provided for each project of different infrastructure types within the designated market area.
Participating Institution Under the Agriculture Infrastructure Fund Scheme
- Schedule commercial banks
- Schedule Cooperative Bank
- Regional rural bank
- Small Finance Bank
- Nonbanking financial companies
- National Cooperative Development Corporation
Monitoring Framework Of Agriculture Infrastructure Fund Scheme
- To ensure the scheme’s effective implementation, real-time monitoring and feedback will be facilitated by national, state, and district-level monitoring committees.
- The government will establish these committees at the national, state, and district levels.
- Assets created through the financing facility will be geotagged for tracking and transparency.
- The district monitoring committee and the relevant lending entity will ensure that these geotagged assets are accessible through the online portal.
- After the disbursement of Rs 20,000 crore is completed, the Department of Expenditure will review the scheme for evaluation and, if necessary, make mid-course corrections.
Who Can Apply Under the Agriculture Infrastructure Fund Scheme?
- Agricultural Produce Market Committee
- Agri-Entrepreneur
- Central Sponsored Public-Private Partnership Project
- Farmer
- Farmer Producers Organization
- Federation of Farmer Produce Organisations
- Joint Liability Groups
- Local Body sponsored Public-Private Partnership Project
- Marketing Cooperative Society
- Multipurpose Cooperative Society
- National Federations of Cooperatives
- Primary Agricultural Credit Society
- Self Help Group
- Federations of Self-Help Groups
- Start-Up
- State Agencies
- State Federations of Cooperatives
- State-sponsored Public-Private Partnership Project
Required Documents for the Agriculture Infrastructure Fund Scheme
To apply for an Agriculture Infrastructure Fund (AIF) loan from the bank, you will need to provide the following documents:
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A completed and signed loan application form or a customer request letter for an AIF loan.
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Passport-sized photographs of the promoter, partners, or directors involved in the project.
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Proof of identity, which can be a Voter ID card, PAN card, Aadhaar card, or a valid driver’s license.
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Address proof for both residence and business/registered office, which may include documents like a Voter ID card, passport, Aadhaar card, driver’s license, electricity bill, latest property tax bill, or, for companies, a certificate of incorporation.
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Proof of registration, such as the Articles of Association for companies, a certificate of registration for partnerships, or, for MSMEs, a certificate of registration with the District Industries Centre (DIC) or a Udyog Aadhar copy.
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Income tax returns for the past three years, if available.
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Audited balance sheets for the last three years, if available.
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GST certificate, if applicable.
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Land ownership records, including the title deed or lease deed. If the property is leasehold, you’ll need permission to mortgage the immovable property from the lessor.
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A ROC (Registrar of Companies) search report for the company, if applicable.
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KYC (Know Your Customer) documents for the promoter, firm, or company.
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Copies of bank statements for the last year, if available.
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The repayment track record of existing loans, including a loan statement.
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Net worth statements for the promoter.
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A detailed project report outlining the project’s specifics.
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Any local authority permissions, layout plans, estimates, and building sanctions, as required by the project.
Ensure that you submit all the necessary documents accurately and completely to facilitate your AIF loan application.
Procedure To Register Under the Agriculture Infrastructure Fund Scheme
- To begin, visit the official website of the Department of Agriculture and Farmer Welfare.
- Upon doing so, the homepage will be displayed.
- On the homepage, you are required to click on the beneficiary
- Now you have to click on the registration
- A new page will appear before you
- On this page, you have to enter your name, mobile number, and Aadhar number
- After that, you have to click on send OTP
- Now you will receive an OTP
- After that, you have to enter the OTP into the OTP box and click on verify
- After that, you will be redirected to a new page
- On this page, you have to enter all the required details
- After that, you have to click on submit
- Now you will receive a beneficiary ID on your mobile number
- You have to log in to the portal by using the beneficiary ID
- After that, you have to fill out the application form by entering all the required details
- Now you have to upload all the required documents
- After that, you have to click on submit
- By following this procedure you can register under the scheme
Agriculture Infrastructure Fund Scheme Login On The Portal
- Go to the official website of the Departmental Agriculture and Farmer welfare
- The home page will appear before you
- Now you are required to click on the login
- You will encounter the login form on the screen.
- Fill in your login credentials within this form and then click the login button.
- By following this process, you will successfully access the portal.
Get Details Regarding Eligible Projects
- To get started, visit the official website of the Department of Agriculture and Farmer Welfare.
- The homepage will be displayed.
- Next, on the homepage, click on the “Eligible Projects” section.
- A new page will appear on your screen
- On this page, you can get details regarding eligible projects
Procedure To Get Details Regarding Fund Allocation
- Go to the official website of the Departmental Agriculture and Farmer welfare
- The home page will appear before you
- On the home page, you are required to click on fund allocation
- You will be redirected to a new page
- On this page, you can get details regarding fund allocation
Procedure To Get Details Regarding Lending Institutions
- Please visit the official website of the Department of Agriculture and Farmer Welfare.
- Once you’re on the homepage, locate and click on the “Lending Institution” section.
- On the subsequent page, you will find the following options, including “Eligible Institutions,” displayed on your screen.
- Eligible institution
- Interest rates
- You have to click on the option of your choice
- Required details will be on your computer screen
View Contact Details
- Visit the official website of departmental agriculture and farmer welfare
- The home page will appear before you
- Now you are required to click on Contact us
- A new page will appear on your screen
- On this page, you can view contact details
People also ask ( FAQ)
Q: What is the Agriculture Infrastructure Fund?
A: Schemes aimed at delivering diverse benefits to the agricultural sector
Q: What is the agriculture infrastructure fund scheme 2023?
Q: Who is eligible to apply for the agriculture infrastructure fund aif?
Q: What are the benefits of an agriculture infrastructure fund?