Rs 1 lakh crore Agriculture Infrastructure Fund approved by Modi Cabinet
The Union Cabinet chaired by the Prime Minister Narendra Modi today has given its approval to a new pan India Central Sector Scheme-Agriculture Infrastructure Fund.
The Union Cabinet chaired by the Prime Minister Narendra Modi today has given its approval to a new pan India Central Sector Scheme-Agriculture Infrastructure Fund. 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. Loans will be disbursed in four years starting with sanction of Rs 10,000 crore in the current year and Rs 30,000 crore each in next three financial years. It is expressly targetted to help entrepreneurs, start-ups, agri-tech players and farmer groups.
The Ministry of Agriculture & Farmers Welfare informed about the Modi Cabinet decision and said, "Under the scheme, Rs One Lakh Crore will be provided by banks and financial institutions as loans to 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."
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All loans under this financing facility will have interest subvention of 3% per annum up to a limit of Rs 2 crore. 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 Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan up to Rs. 2 crore. The fee for this coverage will be paid by the Government. 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 (DACFW).
Tags: Narendra Modi, India
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