Agriculture Infrastructure Fund

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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    

  1. Interest Subvention
    • Interest subvention of 3% per annum
    • Max Loan amount to be covered – Rs. 2 Crore
    • Maximum period 7 Years (including Moratorium Period)
  2. 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

  1. Post Harvest Management Projects like:
  • Supply chain services including e-marketing platforms
  • Warehouses
  • Silos
  • Pack houses
  • Assaying units
  • Sorting & grading units
  • Cold chains (Milk chilling not included)
  • Logistics facilities
  • Primary processing centers
  • Ripening Chambers
  1. 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.

Eligibility Criteria

  1. Promoter contribution should be minimum 10% of the project cost.
  2. Disbursal of funds by lending entities to beneficiaries under this scheme shall be in Aadhaar linked bank account.
  3. Only for primary processing units

Who can apply

  1. Primary Agricultural Credit Societies (PACS)
  2. Marketing Cooperative Societies
  3. Farmer Producers Organizations(FPOs)
  4. Self Help Group (SHG)
  5. Farmers
  6. Joint Liability Groups (JLG)
  7. Multipurpose Cooperative Societies
  8. Agri-entrepreneurs
  9. Startups
  10. Central/State agency or Local Body sponsored Public Private Partnership Projects.

Important to remember

  1. The extent and percentage of funding to private entrepreneurs out of the total financing facility may be fixed by the National Monitoring Committee
  2. Primary Agricultural Credit Societies (PACS) will be given priority
  3. The Lending Institution should have an MOU with NABARD / DAC & FW
  4. 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
  5. Any grant or subsidy available under any present or future scheme of Central/State government can be availed for projects under this financing facility.
  6. All assets created under this financing facility shall be geo tagged.
  7. 24% of total grants – in – aid under the scheme should be utilized for SC/ST entrepreneurs (16% for SC and 8% for ST)

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Our Unique Services

  1. Preparation of Detailed Project Reports (DPR)
  2. Layout Drawings
  3. Facilitating various permissions required from various Govt. Departments
  4. Error free application processing for various subsidies and incentives
  5. Facilitating the arrangement of subsidies and incentives from Govt. Departments
  6. Advisory on Purchase of Machinery / Technology and Civil works


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