The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the expansion of Agriculture Infrastructure Fund (AIF), a financing facility under the Central Sector Scheme. The move is aimed at boosting agricultural infrastructure across India, making the scheme more impactful, inclusive, and appealing to a wider range of beneficiaries.
The Government’s new measures are set to broaden the scope of eligible projects under the AIF, focusing on the development of viable farming assets and the integration of supportive measures to strengthen the agricultural infrastructure ecosystem.
*Key Initiatives:*
1. Viable Farming Assets: The scheme will now include all eligible beneficiaries for the creation of infrastructure under viable projects for building community farming assets. This expansion is expected to bolster community farming capabilities, improving both productivity and sustainability in the agricultural sector.
2. Integrated Processing Projects: The list of eligible activities under the AIF has been expanded to include integrated primary and secondary processing projects. However, standalone secondary projects will be excluded and instead be covered under Ministry of Food Processing Industries (MoFPI) schemes.
3. PM KUSUM Component-A Integration: The scheme will now allow the convergence of Component-A of PM-KUSUM with AIF for farmers, farmer groups, Farmer Producer Organizations (FPOs), cooperatives, and panchayats. This integration is designed to promote sustainable clean energy solutions alongside the development of agricultural infrastructure.
4. NABSanrakshan Credit Guarantee: In addition to the existing coverage under CGTMSE, the AIF credit guarantee for FPOs will be extended through the NABSanrakshan Trustee Company Pvt. Ltd. This move is intended to boost financial security and creditworthiness for FPOs, encouraging more investment in agricultural infrastructure projects.
Since its launch in 2020, the AIF has supported the creation of 6,623 warehouses, 688 cold storage units, and 21 silo projects, resulting in an additional storage capacity of about 500 LMT in the country. This includes 465 LMT of dry storage and 35 LMT of cold storage capacity, which together save 18.6 LMT of food grains and 3.44 LMT of horticulture produce annually. To date, Rs. 47,575 crore has been sanctioned for 74,508 projects under the AIF, mobilizing an investment of Rs. 78,596 crore in the agriculture sector. The projects have also generated over 8.19 lakh rural employment opportunities.
