Cabinet approves modifications in financing facility under ‘Agriculture Infrastructure Fund’

Source: PIB

What is the News?

The Union Cabinet has approved modifications to the Agriculture Infrastructure Fund (AIF) to increase investment.

About Agriculture Infrastructure Fund(AIF):

  • Agriculture Infrastructure Fund(AIF) is a Central Sector Scheme launched by the Department of Agriculture Cooperation and Farmers Welfare(DAC&FW), Ministry of Agriculture.
  • Aim: To provide medium – long term debt financing facility for investment in viable projects. This includes post-harvest management Infrastructure and community farming assets through incentives and financial support.

Key Changes approved under the Scheme:

Extension of Eligibility:

  • Eligibility for credit under the scheme has been extended to State Agencies/ APMCs, National & State Federations of Cooperatives, Federations of Farmers Producers Organizations(FPOs) and Federations of Self Help Groups (SHGs).

Interest Subvention:

  • At present, Interest subvention for a loan upto Rs. 2 crore in one location is eligible under the scheme.
  • However, from now on entities would be able to get interest subvention of 3% per annum not just for one loan up to ₹2 crores but for multiple projects at different locations.
  • But for a private sector entity, there will be a limit of a maximum of 25 such projects. This limitation of 25 projects will not be applicable to State agencies, national and state federations of cooperatives, federations of FPOs, and federation of SHGs.
  • Further, for APMCs, interest subvention for a loan upto Rs. 2 crores will be provided for each project of different infrastructure types e.g. cold storage, sorting, grading, and assaying units, silos within the same market yard.


  • The power to make necessary changes with regard to the addition or deletion of beneficiaries has been delegated to the Union Minister of Agriculture & Farmers Welfare.

Duration of the Scheme:

  • The period of the financial facility has been extended from 4 to 6 years up to 2025-26.
  • The overall period of the scheme has been extended from 10 to 13 years, i.e upto 2032-33.
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