Close to ₹1-lakh-crore investments aided by agri-infrastructure fund

TO STRENGTHEN POST-HARVEST infrastructure and farm assets through credit guarantees and interest subvention support, the government has approved loan proposals worth ₹60,000 crore under the agriculture infrastructure fund (AIF) for over 100,000 projects since its launch four years ago.

- SANDIP DAS

Sources stated that these sanctioned projects by the ministry of agriculture have so far mobilised ₹97,500 crore in investments, including equity contributions from private entities.

Launched in May 2020, the AIF aims to disburse ₹1 lakh crore through banks and financial institutions by FY26. The scheme is operational from 2020-21 to 2032-33.

The agriculture ministry has allocated over ₹10,600 crore in budgetary support, covering ₹7,900 crore for interest subvention and ₹2,600 crore for credit guarantee costs over a 10-year period.

Under the scheme, loans up to ₹2 crore are available with a maximum repayment period of seven years. The fund provides a 3% interest subvention, with a 9% cap on the rate of investment, and credit guarantee coverage under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and NABSanrakshan, a Nabard entity.