New Delhi: The Union Cabinet has approved a progressive expansion of the Central Sector Scheme of financing under the ‘Agriculture Infrastructure Fund’ (AIF). This significant move is aimed at enhancing and strengthening agricultural infrastructure across the country, making the scheme more attractive, impactful, and inclusive.
Key Highlights of the Expansion:
- Viable Farming Assets: The scheme will now support the creation of infrastructure for ‘viable projects for building community farming assets.’ This initiative is designed to improve community farming capabilities, boost productivity, and enhance sustainability in the agricultural sector.
- Integrated Processing Projects: The expansion includes integrating primary and secondary processing projects into the list of eligible activities under AIF. Standalone secondary projects will remain covered under the Ministry of Food Processing Industries (MoFPI) schemes.
- Convergence with PM KUSUM Component-A: The scheme will allow the convergence of Component-A of the PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan) with AIF. This alignment aims to promote sustainable clean energy solutions alongside the development of agricultural infrastructure for farmers, Farmer Producer Organizations (FPOs), cooperatives, and panchayats.
- NABSanrakshan Credit Guarantee: The credit guarantee coverage for FPOs will be extended through NABSanrakshan Trustee Company Pvt. Ltd. This addition, alongside the existing Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), will enhance the financial security and creditworthiness of FPOs, encouraging greater investment in agricultural infrastructure.
Since its launch in 2020, AIF has significantly contributed to the agricultural sector by supporting the creation of 6,623 warehouses, 688 cold storage units, and 21 silos projects. These additions have resulted in an increased storage capacity of approximately 500 lakh metric tonnes (LMT), including 465 LMT of dry storage and 35 LMT of cold storage. This enhanced capacity helps in saving 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 AIF, mobilizing a total investment of Rs. 78,596 crore in the agricultural sector. Notably, Rs. 78,433 crore of this investment has come from private entities. The sanctioned projects have also contributed to generating over 8.19 lakh rural employment opportunities.
The expansion of the AIF scheme is expected to further drive growth, improve productivity, and enhance farm incomes, contributing to the overall sustainability of agriculture in the country. These measures underscore the government’s commitment to holistic development of farm infrastructure and supporting the agricultural sector through substantial investments and strategic enhancements.
With these progressive updates, the AIF scheme is set to play a pivotal role in shaping the future of India’s agricultural landscape, fostering sustainable development, and improving the livelihoods of farmers across the nation.
