Agriculture Infrastructure Fund Scheme 2023: Features, Benefits, Guidelines & Application Procedure -

The Government of India introduces different schemes for the benefits of agricultural sector. The government provides infrastructural and financial facilities to the farmers through these schemes. Recently, the GOI has introduced an Agriculture Infrastructure Fund Scheme to improve the agriculture sector. In this article, we will get all the details of this scheme covered. So, go through the article till the end to know about the scheme.

Agriculture Infrastructure Fund Scheme 2023

Many readers are aware that agriculture and related activities are the primary source of income for nearly 3/5^th of India’s total population. About 85% of India’s farmers have small holding, which is not more than 2 hectares under cultivation. They are poor farmers with a very low income. Hence, to improve their financial condition and overall, the agricultural sector, the Government of India has launched a scheme. Through this scheme, the GOI will provide long-term debt finance facilities in feasible projects and for community farming assets and post-harvest management infrastructure.

Through this scheme, funding will be provided to farmers, Agriculture entrepreneurs and start-ups. This scheme will have three components such as administration cost of PMU, credit guarantee cost and interesting subvention cost.

Agriculture Infrastructure Fund Scheme 2023: Benefits

The key objective of the Agriculture Infrastructure Fund Scheme is to offer a long-term debt facility for investment in viable projects for community farming assets and post-harvest management infrastructure. The financial assistance will be offered through financial assistance and incentives in order to improve the agricultural sector of the country.

Benefits of Agriculture Infrastructure Fund Scheme will be distributed among farmers, agro start-ups and entrepreneurs. The implementation of the scheme will improve the farmers’ standard of living. In addition, farmers will become self-dependent. Infrastructural improvement will increase farmers’ income. The scheme will help to improve the overall economy of India as Agriculture is the primary sector of the country.

Agriculture Infrastructure Fund Scheme 2023: An Overview

Name Of The Scheme	Agriculture Infrastructure Fund Scheme
Initiaated By Year of Launch	Government Of India 2023
Beneficiary	Citizens Of India
Objective	To Provide Funding For Agriculture And Allied Activities
Official Website	https://agriinfra.dac.gov.in/

Agriculture Infrastructure Fund Scheme 2023: Features

Ø The scheme is designed to converge with other similar State and Central schemes.

Ø The project management unit will give handholding support for the agriculture project, including preparation of project.

Ø Under the scheme, the total financial facility will amount to 1 lakh crore.

Ø The credit guarantee for loans will be up to Rs 2 crore.

Ø The government will provide interest subvention of 3% every year restricted to 2 crore per project.

Ø There will be an upper limit on the lending rate to ensure that beneficiaries receive interest subsidy.

Ø If an eligible applicant lists a project in different locations, all the projects will qualify for a loan of 2 crore under the scheme.

Ø Each such project should be put in a location with a unique local government directory code.

Ø The interest subvention will be available for 2 years (maximum).

Ø Under the financial facility, the moratorium for payment may vary from a minimum period of 6 months to a maximum period of 2 years.

Agriculture Infrastructure Fund Scheme 2023: Implementation Period

Ø The scheme is implemented from 2020-21 to 2032-33.

Ø Under the scheme, loan disbursement will be done in 6 years.

Ø An amount of Rs 4000 crores has already been sanctioned for the project in the fiscal year 2020.

Ø The government will disburse the balance amount of Rs 96000 crores in the years to come. The amount of Rs 16000 cores will be disbursed in the fiscal year 2021-22 and an amount of Rs 20000 cores will be disbursed in 4 years from 2022-23 to 2025-26.

Ø A maximum period of 7 years will be earmarked for the repayment of financial facility. This time duration also includes a moratorium period of 2 years.

Agriculture Infrastructure Fund Scheme 2023: Components

Credit Guarantee Cost: Credit guarantee coverage of up to the highest limit of Rs 2 crore, under the credit guarantee fund trust for small and micro businesses, will be provided to the eligible borrowers. The government will pay the fees for the coverage.

Interest Subvention Cost: Under the components of this scheme, a maximum amount of 3 crores will be provided at 3% interest subvention/year. The government will provide the subvention for a max duration of 7 years. The national monitoring committee will be in charge of fixing the extent percentage of funding to the private entrepreneurs.

The Administration Cost of PMU: The farmer welfare programs implementation society under DSCFW will provide PMU support to the scheme at state and central level. To support the beneficiaries under the scheme, the gaps in the supply chain will be closed to ready practical project reports and target projects.

Agriculture Infrastructure Fund Scheme 2023: Eligible Projects

Post-Harvest Management Project

Supply chain services including e-marketing platform
Silos
Warehouses
Pack houses
Sorting and grading units
Assaying units
Logistic facilities
Cold chains
Ripening chambers
Primary processing centres

Viable Projects for Building Community Farming Assets Including

Biostimulant production units
Organic inputs production
Infrastructure for precision and smart agriculture
The project earmarked for providing supply chain infrastructure for a cluster of crops including export clusters
Projects promoted by central/state/local governments and their Agencies under PPP in community farming assets and post-harvest management projects

Agriculture Infrastructure Fund Scheme 2023:Size of Financing Facility and Eligible Beneficiary

Ø The banks will provide a sum of Rs 1 lakh crore as loan to primary agriculture credit society, farmer producer organization, marketing cooperative society, farmers joint liability group, self-help group, Agri entrepreneurs, agriculture produce market committees, multipurpose cooperative society, startup and Central or local body or state agency sponsored public-private partnership project, state Agencies, National and state federation of cooperative etc.

Ø APMCS-operated regular market for agriculture and allied sector produces including fisheries are also eligible.

Ø PACS, who have digitalized their operations, will be given preference under this scheme

Agriculture Infrastructure Fund Scheme 2023: Number of Recognized Projects Per Entity

Ø The government will provide loans up to 2 crores in one location as interest subvention.

Ø If an eligible entity puts a project in a different location, all these projects will come under the scheme for a loan of Rs 2 crores.

Ø There will be a maximum limit of 25 such projects for private sector entities.

Ø The restriction of 25 projects will not apply to state Agencies, natural and state federations of the cooperative, federation of SHGS and federation of FPO.

Ø The APMC will qualify for multiple projects within their designated market area.

Ø For such cases, a loan up to Rs 2 crore will be offered as interest subvention for each project of various infrastructure types within the designated market area.

Agriculture Infrastructure Fund Scheme 2023: Participating Institutions

Schedule cooperative Bank
Schedule commercial banks
Regional rural bank
Small Finance Bank
National Cooperative Development corporation
Nonbanking financial companies

Agriculture Infrastructure Fund Scheme 2023: Monitoring Framework

The district, state and national level monitoring committee will make sure the effective feedback and real-time monitoring about the scheme’s implementation.
The government will set up a district, state and national level monitoring committee.
Under the financing facility, assets will be created and geotagged
The district monitoring committee and the corresponding lending entity will make sure availability of the geotagged assets on the official online portal
The department of expenditure will re-examine the scheme after Rs 20000 crore is disbursed for assessment and mid-course correction if needed.

Agriculture Infrastructure Fund Scheme 2023: Eligibility Criteria

Agri-Entrepreneur
Agricultural Produce Market Committee
Central sponsored Public-Private Partnership Project
Farmer
Federation of Farmer Produce Organisations
Farmer Producers Organization
Federations of Self Help Groups
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
State Agencies
State Federations of Cooperatives
State-sponsored Public-Private Partnership Project
Start-Up

Agriculture Infrastructure Fund Scheme 2023: Required Documents

Bank’s loan application form / Customer Request Letter for AIF Loan duly completed and signed
Passport size photographs of the promoter/partners/director
Identity proof – Voter ID card/Aadhaar card/PAN Card/Driving license
Address Proof :

· Residence: Voter ID card/Passport/Aadhaar card/ Electricity Bill/Latest Property Tax Bill/ Driving license/

· Business Office/Registered Office: Electricity Bill/Latest Property Tax Receipt/Certificate of Incorporation in case of Companies/Certificate of Registration in ca of partnership Firms

Proof of Registration:

· In case of Company: Article of Association

· In case of MSMEs: Certificate of Registration with District Industries Centre (DIC)/Udyog Aadhar Copy

· In case of Partnership: Certificate of Registration of Firm with Registrar of Firm

Income Tax Return for the last three years, If available.
Audited Balance Sheet for last 3 Years, If available.
GST Certificate, if needed
Land ownership records – title deed/lease deed. If applicable, then Permission to mortgage the Immovable Property from the Lessor in case the Property is Leasehold (for primary security)
KYC documents of the promoter/firm/company
ROC Search Report of the Company
Copy of Bank Statement for last one year (If available)
Repayment track record of existing loans (Loan Statement)
Net Worth Statements of promoter
Detailed Project Report
As applicable – Local authority permissions, Layout plans/estimates, Building sanction.

Agriculture Infrastructure Fund Scheme 2023: Procedure to Register

First of all, visit the official website of the departmental agriculture and farmer welfare
The home page will open on your screen.
On the homepage, you will have to click on the beneficiary.
Next, you are required to click on the registration

A new page will open on your screen.
On this page, you will be required to enter your name, Aadhar number and mobile number.
Next, you need to click on send OTP.
After that, you will immediately receive an OTP.
After that, you have to type the OTP in the OTP box and then, click on verify.
After that, you will be redirected to a new page.
On the new page, you will be asked to enter all the required details in the provided spaces.
Next, you will be required to click on Submit button.
After that, a beneficiary id will be sent to your mobile number.
You have to log in to the portal by using the beneficiary ID.
After that, you have to fill out the application form by entering all the required details.
Now you have to upload all the required documents.
After that you have to click on Submit button.

This way, you will be able to register under the scheme.

Agriculture Infrastructure Fund Scheme 2023: How to Login on the Portal

First of all, visit the official website of the departmental agriculture and farmer welfare
The HOME page will open on your screen.
On this page, you will be required to click on the login.

The Login form will appear on your screen.
In this form, you will have to type in your login credentials and click on the login.

This way, you will be able to log in on the official portal.

Agriculture Infrastructure Fund Scheme 2023: How to Get Details Regarding Eligible Projects

First of all, visit the official website of departmental agriculture and farmer welfare.
The HOME page will open on your screen.
Now on the home page, you are required to click on eligible projects.

A new page will appear on your screen.
On this page, you can get details regarding eligible projects.

Video credit : EduTap

Agriculture Infrastructure Fund Scheme 2023: How to Get Details Regarding Fund Allocation

Visit the official website of departmental agriculture and farmer welfare.

The HOME page will open on your screen.
On the home page, you need to click on fund allocation.

You will be redirected to a new page
On this page, you will find details about fund allocation

Agriculture Infrastructure Fund Scheme 2023: How to Get Details Regarding Lending Institutions

First of all, visit the official website of departmental agriculture and farmer welfare
The HOME page will open on your screen.
Next, you need to click on the lending institution.
The Following options will appear on your screen:-

Eligible institution
Interest rates

You need to click on the option of your preference.
Required details will appear on your computer screen

Agriculture Infrastructure Fund Scheme 2023: How to View Contact Details

First of all, visit the official website of departmental agriculture and farmer welfare.
The HOME page will open on your screen.
Now you have to click on contact us.