Agri infra fund backs projects worth ₹1.15 trillion

The government's Agriculture Infrastructure Fund, which aims to finance post-harvest crop management, has attracted investment worth over ₹1.15 trillion in 123,650 projects across India since its launch in July 2020, according to two officials aware of the matter.

- Vijay C. Roy

Under the fund, financial institutions such as banks sanction loans for the project, while the central government offers an interest subvention of 3% per annum up to a loan limit of ₹2 crore to the beneficiary for a period of seven years. Also, the government offers credit guarantee coverage (fee borne by the government) to eligible borrowers for a loan up to ₹2 crore. Borrowers contribute at least 10% of the total project cost.