Manoj Ahuja launched a new campaign called India for Banks under Agri Infra Fund

Tags: Government Schemes

Secretary, Ministry of Agriculture and Farmers Welfare, Manoj Ahuja launched a new campaign called Bharat (Banks Heralding Accelerated Rural and Agricultural Transformation) for Banks under Agri Infra Fund.

An Overview of the News

• The campaign will run for a month from 15 July 2023 to 15 August 2023, with a target of raising Rs 7,200 crore.

• The launch event took place through a video conference, in which more than 100 banking officials including MDs/Chairmen, EDs, Regional Rural Banks, Small Finance Banks, NBFCs and select Co-operative Banks from public and private sectors participated.

• Joint Secretary Agriculture Infrastructure Fund (AIF) Samuel Praveen Kumar highlighted the progress made under the Agri Infra Fund scheme which has seen construction of over 31,850 agriculture infrastructure projects in the country with a loan amount of Rs 24,750 crore. The total outlay of the scheme is Rs 42,000 crore.

About Agriculture Infrastructure Fund

• Agriculture Infrastructure Fund is a Central Sector Scheme launched in 2020.

• Its objective is to provide medium to long term debt financing for viable projects related to post-harvest management infrastructure and community farm assets.

• The scheme provides interest subvention and financial assistance.

• The scheme will be active for a total of 10 years from FY2020 to FY2032.

Benefits of Agriculture Infrastructure Fund:

• Interest Subvention: Interest subvention of 3% per annum will be available on all loans availed through this financing facility. This rebate is available for a maximum period of seven years and is applicable on loans up to a limit of Rs 2 crore.

• Credit Guarantee Coverage: Eligible borrowers can avail credit guarantee coverage under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme. This coverage is provided for loans up to Rs.2 crore and for this coverage The fee is paid by the government.

• FPO: Farmer Producer Organizations (FPOs) can avail credit guarantee coverage from the facility created under the FPO Promotion Scheme of the Department of Agriculture, Cooperation and Farmers Welfare (DACFW).

• Repayment Moratorium: Repayment moratorium may vary under this financing facility. The minimum moratorium period is 6 months and the maximum is 2 years.