In order to address the existing infrastructure gaps and mobilize investment in agriculture infrastructure, Agri Infra Fund was launched under Aatmanirbhar Bharat Package. AIF was introduced with a vision to transform the agriculture infrastructure landscape of the country. The Agriculture Infrastructure Fund is a medium - long term debt financing facility for investment in viable projects for post-harvest management infrastructure and community farming assets through interest subvention and credit guarantee support. The Fund of Rs. 1 lakh crore under the scheme will be disbursed from FY 2020-21 to FY2025-26 and the support under the scheme will be provided for the duration of FY2020-21 to FY2032-33.
Key features include:
- A ₹1 lakh crore fund available from 2020-2026, with support extending to 2032-33.
- Interest subvention of 3% on loans up to ₹2 crore, capped at a 7-year term.
- Credit guarantees for loans up to ₹2 crore to reduce lender risk.
- Online application access, project support units, and integration with other government schemes.
As of August 28, 2024, Rs. 47,575 Crore has been sanctioned for 74,508 projects under AIF scheme. These sanctioned projects have mobilized an investment of Rs 78,596 Crore in agriculture sector, out of which Rs.78,433 Crore has been mobilised from private entities. In addition, infrastructure projects sanctioned under AIF have helped in generating more than 8.19 Lakh rural employment opportunities in the agriculture sector. By enhancing infrastructure, the AIF aims to boost income for farmers, reduce losses, and attract private sector investment.
