The Hon’ble Finance Minister announced on 15.05.2020 Rs.1 lakh crore Agri Infrastructure Fund for farm-gate infrastructure for farmers out of which Rs.4713 crores has been allocated for Punjab State. 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
The role of infrastructure is crucial for agriculture development and for taking the product dynamics to the next level. It is only through the development of infrastructure, especially at the post- harvest stage that the produce can be optimally utilized with opportunities for value- addition and fair deal for the farmers. Development of such infrastructure shall also address the vagaries of nature, the regional disparities, development of human resource and realization of full potential of the country’s land resources.
Agriculture and allied activities are the primary source of income for approx. 58% of total population of the country. The country has limited infrastructure connecting farmers to markets and hence, 15-20% of the yield is wasted. Investment in agriculture in India has been stagnant with less than 2% CAGR (Compound annual growth rate) over last five years. In view of the same, the Central Sector Scheme is formulated to mobilize medium- long term debt financing facility for investment in viable projects relating to post- harvest management infrastructure and community farming assets through incentives and financial support. The financing facility will be provided for funding Agriculture Infrastructure Projects at farm- gate & aggregation points (Primary Agricultural Credit Society, Farmers Producer Organizations, Agriculture entrepreneurs, Start- Ups etc.) Impetus for development of farm- gate and aggregation point, affordable and financially viable Post Harvest Management Infrastructure.
| PARAMETERS | DESCRIPTION |
|---|---|
| Objective of Scheme | To mobilize a medium- long term debt finances facility for investment in viable projects for post- harvest management infrastructure and community farming assets through incentives and financial support in order to improve agriculture infrastructure in the country. |
| Period | The scheme will be operational from 2020-21 to 2029-30. |
| Eligible Beneficiaries | Primary Agricultural Credit Societies (PACS), Marketing Cooperative Societies, Farmer Producers Organizations (FPOs), Self Help Groups (SHGs), Joint Liability Groups (JLGs), Farmers, Multi- Purpose Cooperative Societies, Agri- entrepreneurs, Start- Ups and central/ state agency or local body sponsored Public Private Partnership Projects. PACS who have adopted digitization for handling its operations will be given preference under the scheme. |
| Extent of Loan | Limit will be decided on the basis of project cost and total financial outlay of the project. |
| Nature of facility | Term Loan. |
| Eligible projects | The scheme will facilitate setting up and modernization of key elements of the value chain including: Post- Harvest Management Projects like: Supply chain services including e-marketing platforms, Warehouse, silos, pack houses, assaying units, sorting & grading units, cold chains, logistics facilities, primary processing centers, ripening chambers. Viable projects for building community farming assets including: Organic inputs production, Bio- stimulant production units, infrastructure for smart and precision agriculture, projects identified for providing supply- chain infrastructure for clusters of crops governments or their agencies under PPP for building including export clusters, projects promoted by central/ state/ local community farming assets or post- harvest management projects. |
| Interest Subvention | All loans under this facility will have interest subvention of 3% per annum up to a limit of Rs. 2.00 Crores.The subvention will be available for a maximum period of 7 years.In case of loans beyond 2.00 crores, the interest subvention will be limited up to 2 Crores.Subvention will be allowed only till the account is under standard category. In case of account(s) which have turned NPA, subvention will be allowed from the date of up gradation of account to standard category. e. Interest subvention will be given from the date of first disbursal and from next year it will be applicable from 1st of the April every year upto 7 year for outstanding loan. |
| Credit Guarantee | a. Credit Guarantee coverage will be available to eligible borrowers from this financing facility under Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE) Scheme for a loan up to Rs.2.00 Crores. The guidelines circulated vide MSME Div. Circular No. 53/2018, dt. 15.09.2018 and other related circulars on CGTMSE are to be adhered with. The fee for this coverage will be paid by the Govt. In case of FPOs the credit guarantee may be availed from the facility created under FPO promotion scheme of Department of Agriculture Cooperation & Farmers Welfare (DAC&FW). |
| Public Financial Management System | Interest Subvention and Credit Guarantee support will be released through Public Financial Management System (PFMS). |
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