Context: Union Cabinet has approved the progressive expansion of scope of the 'Agriculture Infrastructure Fund' to make it more attractive, impactful and inclusive.
New Categories under Agriculture Infrastructure Fund
The expansion of scope of Agriculture Infrastructure Fund aims at expanding the scope of eligible projects and integrate additional support measures to foster robust agricultural infrastructure ecosystem.
- Viable Farming Assets: All eligible beneficiaries of the Agriculture Infrastructure Fund for creation of infrastructure under 'viable projects for building community farming assets'.
- Integrated Processing Projects: Inclusion of integrated primary secondary processing projects in the list of eligible projects under Agriculture Infrastructure Fund. However, standalone secondary projects would not be eligible and would be covered under schemes of Ministry of Food Processing Industries (MoFPI).
- PM Kusum Component-A: Allow convergence of Component A of PM-KUSUM with AIF for farmer/group of farmers/Cooperatives/Panchayats. The alignment of these initiatives aims to promote sustainable clean energy solutions alongside the development of agriculture infrastructure.
- NABSanrakshan: Extension of AIF credit guarantee coverage of FPOs through NABSanrakshan Trustee Company. This expansion of credit guarantee options is intended to enhance financial security and creditworthiness of FPOs, thereby encouraging more investments in agricultural infrastructure projects.
About Agriculture Infrastructure Fund (AIF)
- AIF is a Central Sector Scheme of Ministry of Agriculture & Farmers Welfare.
- AIF aims to mobilise a 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.
- Funds: AIF aims to provide Rs 1,00,000 crore will be provided for funding agriculture infrastructure projects at farm-gate & aggregation points PACS, FPOs, SHGs and their federations, JLGs, Cooperatives and their federations, Agriculture entrepreneurs, start-ups etc.
- Impetus for development of farm gate & aggregation point, affordable and financially viable post-harvest management infrastructure.
- Components of Agriculture Infrastructure Fund scheme
- Interest Subvention Cost
- Credit Guarantee Cost
- Administration Cost of PMU
- Eligible Projects:
- Post Harvest Management Projects like supply chain services including e-marketing platforms, warehouse & silos, cold storages & cold chain, packaging units, assaying units, logistic facilities, ripening chambers, farm residue/waste management infrastructures & primary processing activities.
- Community farming assets like organic inputs production, compressed biogas, bio-stimulant production units, infrastructure for smart & precision agriculture, purchase of drones, sensors, blockchain & AI in agriculture, remote sensing & IOT, nursery, tissue culture, seed processing, custom hiring centre, farm/harvest automation, solar pumping system (PM-KUSUM- A, B & C), spirulina production, sericulture processing units, honey processing, supply chain infrastructure for clusters of crops etc.