🔊 Take a moment and listen

The Union Cabinet, chaired by Prime Minister Narendra Modi, has given its approval to expand the Agriculture Infrastructure Fund (AIF), a major financing facility under the Central Sector Scheme. This move aims to enhance agricultural infrastructure across India, making the scheme more impactful, inclusive, and appealing to a broader spectrum of beneficiaries.

The Government’s new measures are poised to widen the scope of eligible projects under the AIF, emphasising the development of viable farming assets and integrating supportive measures to strengthen the agricultural infrastructure ecosystem.

Key Initiatives

• Viable Farming Assets: The AIF will now encompass all eligible beneficiaries for the creation of infrastructure under viable projects, particularly for building community farming assets. This expansion is expected to strengthen community farming capabilities, enhancing productivity and sustainability in the agricultural sector.
• Integrated Processing Projects: The range of eligible activities under the AIF has been broadened to include integrated primary and secondary processing projects. However, standalone secondary projects will be excluded and instead covered under Ministry of Food Processing Industries (MoFPI) schemes.
• PM KUSUM Component-A Integration: The scheme now permits 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 foster sustainable clean energy solutions alongside the development of agricultural infrastructure.
• NABSanrakshan Credit Guarantee: In addition to existing coverage under CGTMSE, the AIF credit guarantee for FPOs will be extended through the NABSanrakshan Trustee Company Pvt. Ltd., boosting financial security and creditworthiness for FPOs, thereby encouraging greater investment in agricultural infrastructure projects.

Since its inception in 2020, the AIF has facilitated the creation of 6,623 warehouses, 688 cold storage units, and 21 silo projects, resulting in an additional storage capacity of approximately 500 LMT across India. This includes 465 LMT of dry storage and 35 LMT of cold storage, collectively saving 18.6 LMT of food grains and 3.44 LMT of horticultural produce annually. To date, ₹47,575 crore has been sanctioned for 74,508 projects under the AIF, mobilising an investment of ₹78,596 crore in the agriculture sector. These projects have also generated over 8.19 lakh rural employment opportunities.

Be a part of Elets Collaborative Initiatives. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook , connect with us on LinkedIn and follow us on Twitter, Instagram.