PM Modi launches financing facility of Rs. 1 lakh cr under Agriculture Infrastructure Fund

Prime Minister Narendra Modi launched the financing facility of Rs. 1 lakh crore under the Agriculture Infrastructure Fund on Sunday at 11 AM via video conferencing.

Prime Minister also released the sixth instalment of funds of Rs. 17,000 crore to 8.5 crore farmers under the PM-KISAN scheme.

The event was witnessed by lakhs of farmers, cooperatives, and citizens across the country. Union Minister of Agriculture and Farmers’ Welfare, Narendra Singh Tomar, was present on the occasion.

The Union Cabinet has approved the Central Sector Scheme of financing facility under “Agriculture Infrastructure Fund” of Rs. 1 Lakh Crore. The Fund will catalyze the creation of post-harvest management infrastructure and community farming assets such as cold storage, collection centres, processing units, etc.

These assets will enable farmers to get greater value for their produce, as they will be able to store and sell at higher prices, reduce wastage, and increase processing and value addition. Rs. 1 Lakh Crore will be sanctioned under the financing facility in partnership with multiple lending institutions; 11 of the 12 Public Sector Banks have already signed MOUs with the DAC&FW. 3% interest subvention and credit guarantee of up to Rs 2 Crore will be provided to the beneficiaries to increase the viability of these projects.

The beneficiaries of the scheme will include farmers, PACS, Marketing Cooperative Societies, FPOs, SHGs, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Startups, and Central/State agency or Local Body sponsored Public-Private Partnership Projects.

The Pradhan Mantri Kisan Samman Nidhi Yojna (PM-KISAN) scheme, launched on 01 December 2018, has provided a direct cash benefit of over Rs. 75,000 Crore to more than 9.9 Crore farmers. This has enabled them to fulfil their agricultural requirements and support their families.