About Agriculture Infrastructure Fund (AIF) Scheme:
- It is a Central Sector Schemewhich was launched in 2020.
- Objective: The scheme shall provide a medium- to 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.
- The duration of the Scheme shall be from FY2020 to FY2032 (10 years).
- Who is eligible?
- Primary Agricultural Credit Societies (PACS)
- Marketing Cooperative Societies
- Farmer Producers Organizations (FPOs)
- Farmers
- Self Help Group (SHG)
- Joint Liability Groups (JLG)
- Multipurpose Cooperative Societies
- Agri-entrepreneurs and Startups
- Central/State agency or Local Body sponsored Public-Private Partnership Projects.
- Exclusions: Public Sector Undertakings (PSUs) are not directly eligible under the scheme, but projects sponsored by them under PPP are eligible.
- All scheduled commercial banks, scheduled cooperative banks, Regional Rural Banks (RRBs), Small Finance Banks, Non-Banking Financial Companies (NBFCs), and National Cooperative Development Corporation (NCDC) may participate to provide this financing facility.
- If required, need-based refinance support will be made available by NABARD to all eligible lending entities, including cooperative banks and RRBs, as per its policy.
- Features:
- All loans up to a limit of ₹ 2 crores under this financing facility will have interest subvention of 3% per annum. This subvention will be available for a maximum period of 7 years.
- An applicant can put up to 25 projects in different locations, and each of such projects will be eligible under the scheme for a loan upto ₹ 2 crore.
- This limit of 25 projects is applicable to private sector entities, such as farmers, Agri entrepreneurs, and start-ups.
- This limitation of 25 projects will not be applicable to state agencies, cooperatives, national and state federations of cooperatives, FPOs, federations of FPOs, SHGs, and federations of SHGs.
- Multiple projects in one location are also eligible with an overall cap of ₹2 crore.
- Under the scheme, it is mandatory for borrowers to contribute at least 10% of total project cost, irrespective of available capital subsidy.
- The moratorium for repayment under this financing facility may vary, subject to a minimum of 6 months and a maximum of 2 years.
- 24% of total grants–in–aid under the scheme should be utilized for SC/ST entrepreneurs (16% for SC and 8% for ST).
- Besides this, lending institutions would ensure adequate coverage of entrepreneurs belonging to women, and other weaker sections of society may be provided loans on a priority basis.
- Credit guarantee coverage will be available for eligible borrowers from this financing facility under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan up to Rs. 2 crores. The fee for this coverage will be paid by the Government.
- In the case of FPOs, the credit guarantee may be availed from the facility created under the FPO promotion scheme of the Department of Agriculture, Cooperation & Farmers Welfare (DACFW).
