Under the scheme, one lakh crore rupees will be provided by banks and financial institutions as loans to Primary Agricultural Credit Societies, Marketing Cooperative Societies,
ANDALIB AKHTER / NEW DELHI
In a major a initiative for farmers’ welfare, the Union Cabinet today gave approved a new pan India Central Scheme- Agriculture Infrastructure Fund. The scheme will provide a medium and 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.
Under the scheme, one lakh crore rupees will be provided by banks and financial institutions as loans to Primary Agricultural Credit Societies, Marketing Cooperative Societies, Farmer Producers Organizations, Self Help Group, Farmers, Startups and Centre and State agency among others.
The duration of the Scheme will be for ten years from Fiscal year 2020 to 2029. Under it, loans will be disbursed in four years starting with sanction of 10 thousand crore rupees in the current year and 30 thousand crore rupees each crore in next three financial years.
All loans under this financing facility will have interest subvention of 3 per cent per annum up to a limit of two crore. rupees and 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 two crore rupees.
The Project by way of facilitating formal credit to farm and farm processing-based activities is expected to create numerous job opportunities in rural areas.
Agri Infra fund will be managed and monitored through an online Management Information System (MIS) platform. It will enable all the qualified entities to apply for loan under the fund.
The National, State and District level Monitoring Committees will be set up to ensure real-time monitoring and effective feed-back.