The government of India has shown its concern towards the agricultural sector and with the start of the new millennia, planning is underway to provide much-needed infrastructure in the form of community farms, livestock shelters, fodder processing plants, and other related activities. In July 2020, the Union Cabinet approved a new pan India Central Sector Scheme called Agriculture Infrastructure Fund (NAIF) in a bid to help farmers improve their post-harvest management and increase the effective reception of remunerative farming. The Agriculture Infrastructure Fund (National Agriculture Infra Financing Facility) scheme is designed to extend a medium-long term debt financing facility for investments in projects for post-harvest management and community farming assets. The scheme will be implemented by NABARD with interest subvention and financial support from govt.
Objective of the Scheme
The scheme was initiated with the objective of deploying a medium to long-term debt finances facility for investment in feasible agricultural projects for addressing post-harvest management infrastructure and community farming assets through subsidies and financial support with the goal to improve agriculture infrastructure in the nation. This financing facility will have numerous objectives for all the stakeholders in the agriculture ecosystem. This scheme will improve the marketing infrastructure that will allow farmers to sell directly to a larger base of consumers or markets and hence, increase value realization for the farmers. This initiative will improve the annual income of farmers and other individuals in the field of agriculture. Farmers will be able to sell in the market with reduced post-harvest losses through investments in logistics infrastructure. This will make farmers independent in the long run and improve their access to the market.
Eligible Projects
The scheme will cater to the setting up and modernization of key elements of the value chain that will be including:
(A) Post Harvest Management Projects like:
- Supply chain services that include e-marketing platforms
- Warehouses
- Silos
- Pack houses
- Assaying units
- Sorting & grading units
- Cold chains
- Logistics facilities
- Primary processing centers
- Ripening Chambers
(B) Feasible projects for establishing community farming assets including:
- Organic inputs production
- Biostimulant production units
- Infrastructure for smart and precision agriculture.
- Supply chain infrastructure including export clusters providing projects
- Projects that are supported by Central/State/Local Governments or their undertaking agencies under PPP for building community farming assets or post-harvest management projects.
Project Cost
1. All loans under this financing facility will have an interest allotment of 3% per annum up to a limit of Rs. 2 crores. This allotment will be available for a maximum time of 7 years.
2. Further, credit guarantee coverage will 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 Rs. 2 crores.
3. In the event of FPOs (Follow on Public Offer) the credit guarantee will be availed from the program created under the FPO promotion scheme of the Department of Agriculture, Cooperation & Farmers Welfare (DACFW).
4. SUBSIDIES:- According to the guidelines, 24% of total grants 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 segments of society maybe
provided the loan on a priority basis to ensure that benefits of implementation are inclusive and accrued to the intended beneficiaries in accordance with Government guidelines and policies.
Repayment Tenure
The moratorium for the loan repayment under this scheme may vary subject to a minimum of 6 months and a maximum of 2 years.
Subsidy Release
The Disbursement of this financing facility will be initiated four years after the sanction of Rs. 10,000 crore in the initial first year and Rs. 30,000 crore each in the next three financial years. The moratorium for repayment under this financing facility can be varied from six months to two years, which will be depending on the project requirement.
Eligibility to Apply
The lending entity will decide on criteria for the selection of eligible applicants in consultation with NABARD and the other monitoring committees, PMUs, and keeping in mind the viability of the projects.
BENEFICIARIES:
- Agricultural Produce Market Committee
- Agri-Entrepreneur
- Central sponsored Public-Private
- Partnership Project
- Farmer
- Farmer Producers Organization
- Federation of Farmer Produce Organisations
- Joint Liability Groups
- Local Body sponsored Public-Private Partnership Project
- Marketing Cooperative Society
- Multipurpose Cooperative Society
- National Federations of Cooperatives
- Primary Agricultural Credit Society
- Self Help Group
- Federations of Self Help Groups
- Start-Up
- State Agencies
- State Federations of Cooperatives
- State-sponsored Public-Private Partnership Project
Agriculture Infrastructure Fund Details
Collateral Security: As per Norms
Processing Fees: As per Norms
Scheme Validation: From 2020 to 2032 – Still Active
Interest Rates: 3% per annum up to a limit of Rs. 2 crore