Agriculture Infrastructure Fund
Objective of the scheme
The Agriculture Infrastructure Fund aims 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.
Budget Allocation : Rs. 1 Lakh Crores
Operating Period of the scheme: 2020-21 to 2029-30
Loan disbursement period: 2020-21 to 2024-24
Pattern of Assistance
- Interest Subvention
- Interest subvention of 3% per annum
- Max Loan amount to be covered – Rs. 2 Crore
- Maximum period 7 Years (including Moratorium Period)
- Collateral free Credit
- Max upto Rs. 2 Crores
- Only for Micro and Small Enterprises
Components of the Scheme
Agriculture Infrastructure Fund 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
- Pack houses
- Assaying units
- Sorting & grading units
- Cold chains (Milk chilling not included)
- 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 including export clusters.
- Projects promoted by Central/State/Local Governments or their agencies under PPP for building community farming assets or post harvest management projects.
- Promoter contribution should be minimum 10% of the project cost.
- Disbursal of funds by lending entities to beneficiaries under this scheme shall be in Aadhaar linked bank account.
- Only for primary processing units
Who can apply
- Primary Agricultural Credit Societies (PACS)
- Marketing Cooperative Societies
- Farmer Producers Organizations(FPOs)
- Self Help Group (SHG)
- Joint Liability Groups (JLG)
- Multipurpose Cooperative Societies
- Central/State agency or Local Body sponsored Public Private Partnership Projects.
Important to remember
- The extent and percentage of funding to private entrepreneurs out of the total financing facility may be fixed by the National Monitoring Committee
- Primary Agricultural Credit Societies (PACS) will be given priority
- The Lending Institution should have an MOU with NABARD / DAC & FW
- No Limit on the Loan amount. But the subsidy is limited to Rs. 2 Crores only. In loans above Rs. Crores, the lending institution has the freedom to fix interest rate and obtain collaterals as per guidelines of the RBI
- Any grant or subsidy available under any present or future scheme of Central/State government can be availed for projects under this financing facility.
- All assets created under this financing facility shall be geo tagged.
- 24% of total grants – in – aid under the scheme should be utilized for SC/ST entrepreneurs (16% for SC and 8% for ST)
Online platform: www.agriinfra.dac.gov.in
Our Unique Services
- Preparation of Detailed Project Reports (DPR)
- Layout Drawings
- Facilitating various permissions required from various Govt. Departments
- Error free application processing for various subsidies and incentives
- Facilitating the arrangement of subsidies and incentives from Govt. Departments
- Advisory on Purchase of Machinery / Technology and Civil works