Cabinet approves setting up ₹1 lakh-cr agri infra fund

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News: Government of India has approved setting up of an agriculture infrastructure fund with a corpus of Rs 1 lakh crore.

Facts:

  • Type: Central Sector Scheme.
  • Aim: To provide a medium-long term debt financing for investment in viable projects for post-harvest management Infrastructure and community farming assets through interest subvention and financial support.
  • Duration: The duration of the Scheme shall be from FY2020 to FY2029 (10 years).
  • Coverage: The fund will provide loans to Primary Agricultural Credit Societies(PACS), Marketing Cooperative Societies, Farmer Producers Organizations(FPOs), Self Help Group(SHG), farmers, Joint Liability Groups (JLG) among others.
  • Interest subvention: All loans will have interest subvention of 3% per annum up to a limit of ₹2 crore.This subvention will be available for a maximum period of seven years. 
  • Credit Guarantee: Credit guarantee coverage will also 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 ₹2 crore.
  • Monitoring: The National, State and District level Monitoring Committees will be set up to ensure real-time monitoring and effective feed-back.