New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has, on Wednesday, approved the progressive expansion of the Central sector scheme of financing under the ‘Agriculture Infrastructure Fund’ (AIF) to make it more attractive, impactful, and inclusive.
To strengthen agricultural infrastructure and support farmers across India, the government has introduced a series of measures to broaden the scope of the AIF scheme. These initiatives aim to expand eligible projects and incorporate additional support measures to build a strong agricultural infrastructure ecosystem.
Viable Farming Assets: The government will allow all eligible beneficiaries to create infrastructure under ‘viable projects for building community farming assets.’ This step aims to boost the development of viable projects that enhance community farming capabilities, thereby improving productivity and sustainability in the agricultural sector.
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Integrated Processing Projects: Integrated primary and secondary processing projects will now be included in the list of eligible activities under the Agriculture Infrastructure Fund. However, standalone secondary processing projects will remain ineligible and will be covered under Ministry of Food Processing Industries (MoFPI) schemes.
PM-KUSUM Component-A: The government has allowed the convergence of Component-A of the PM-KUSUM scheme with AIF for farmers, farmer groups, farmer producer organisations (FPOs), cooperatives and gram panchayats. This alignment promotes sustainable clean energy solutions alongside the development of agricultural infrastructure.
NABSanrakshan: In addition to the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), AIF credit guarantee coverage for FPOs will be extended through the NABSanrakshan Trustee Company. This expansion of credit guarantee options aims to enhance the financial security and creditworthiness of FPOs, encouraging more investments in agricultural infrastructure projects.
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“Since its launch in 2020, the Agriculture Infrastructure Fund has played a pivotal role in supporting the creation of 6,623 warehouses, 688 cold stores, and 21 silos, adding approximately 500 lakh metric tonnes (LMT) of storage capacity in the country, including 465 LMT of dry storage and 35 LMT of cold storage. This additional capacity helps save 18.6 LMT of foodgrains and 3.44 LMT of horticulture produce annually. So far, Rs. 47,575 crores have been sanctioned for 74,508 projects under the AIF, mobilising an investment of Rs. 78,596 crores in the agriculture sector, with Rs. 78,433 crores coming from private entities. Additionally, these infrastructure projects have generated more than 8.19 lakh rural employment opportunities in the agriculture sector,” a cabinet press release informed.
The expanded scope of the AIF scheme is set to drive growth, enhance productivity, increase farm incomes, and promote sustainability in agriculture across the country. These measures reflect the government’s pledge to strengthen the agricultural sector through holistic development of farm infrastructure.
