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National News
Cabinet approves modifications in financing facility under Agri Infrastructure Fund
 
New Delhi: The Union Cabinet chaired by Prime Minister Narendra Modi on Thursday gave its approval to the modifications in Central Sector Scheme of Financing Facility under ‘Agriculture Infrastructure Fund’.

Sharing the details of the modifications, Agriculture Minister Narendra Singh Tomar said that the eligibility has now been extended to State Agencies or Agricultural Produce Market Committees (APMCs), National and State Federations of Cooperatives, Federations of Farmers Producers Organizations (FPOs) and Federations of Self Help Groups (SHGs).

At present interest subvention for a loan upto Rs two crore in one location is eligible under the scheme. In case, one eligible entity puts up projects in different locations then all such projects will now be eligible for interest subvention for loan upto Rs two crore.

“Eligibility has now been extended to State Agencies/APMCs, National & State Federations of Cooperatives, Federations of Farmers Producers Organizations (FPOs) and Federations of Self Help Groups (SHGs)”, the Minister said.

However, for a private sector entity there will be a limit of a maximum of 25 such projects. This limitation of 25 projects will not be applicable to state agencies, national and state federations of cooperatives, federations of FPOs and federation of SHGs.

Location will mean physical boundary of a village or town having a distinct LGD (Local Government Directory) code. Each of such projects should be in a location having a separate LGD code.

For APMCs, interest subvention for a loan upto Rs. 2 crore will be provided for each project of different infrastructure types such as cold storage, sorting, grading and assaying units, silos etc within the same market yard.

The power has been delegated to Minister of Agriculture & Farmers Welfare to make necessary changes with regard to addition or deletion of beneficiary in such a manner so that basic spirit of the scheme is not altered.

The period of financial facility has been extended from 4 to 6 years upto 2025-26 and overall period of the scheme has been extended from 10 to 13 upto 2032-33.

The modifications in the scheme will help to achieve a multiplier effect in generating investments while ensuring that the benefits reach small and marginal farmers. APMC markets are setup to provide market linkages and create an ecosystem of post-harvest public infrastructure open to all farmers, an official statement said


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