Note4Students
From UPSC perspective, the following things are important :
Prelims level: Agricultural Infrastructure Fund (AIF) Scheme
Why in the News?
- The Union Cabinet has approved the expansion of the Agricultural Infrastructure Fund (AIF) scheme.
- It will now include financial support for Farmers’ Producers Organizations (FPOs) to enhance their financial security and creditworthiness.
About Agriculture Infrastructure Fund (AIF) Scheme:
Details | |
Launch | July 2020, Central Sector Scheme |
Nodal Ministry | Ministry of Agriculture and Farmers Welfare, Government of India |
Fund Allocation | Rs. 1 lakh crore, with disbursements planned until 2025-26; interest subvention and credit guarantee assistance extended till 2032-33. |
Aim | To mobilize medium to long-term debt financing for investment in viable projects relating to post-harvest management infrastructure and community farming assets, to enhance agricultural infrastructure in India. |
Key Features | – Interest Subvention: 3% on loans up to Rs. 2 crore, with additional rate reductions for NABARD loans for PACS. – Credit Guarantees: Under the CGTMSE scheme for loans up to Rs. 2 crore. – Fund Usage: Supports up to 25 projects per beneficiary across different locations. |
Target Beneficiaries | Farmers, Farmer Producer Organizations (FPOs), Primary Agricultural Credit Societies (PACS), entrepreneurs, startups, Self Help Groups, Agricultural Produce Market Committees, and federations. |
Management | Managed through an online MIS platform with national, state, and district level monitoring committees for real-time monitoring and feedback. |
Lending Institutions | Includes 24 commercial banks, 40 cooperative banks, and NABARD among others. |
Hassle-Free Process | Supported by a user-friendly online portal to facilitate speedy loan sanctions. |
Key changes introduced:
Description | |
Support for FPOs | Includes financial support for Farmers’ Producers Organizations (FPOs) to improve financial security and creditworthiness. |
Broader Eligible Projects | Expand the scope to cover more types of agricultural infrastructure projects. |
Community Farming Assets | Allows the creation of community farming assets to enhance productivity and sustainability. |
Integrated Processing Projects | Adds integrated primary and secondary processing projects as eligible activities; standalone secondary projects remain under MoFPI schemes. |
Alignment with PM-KUSUM | Converges AIF with PM-KUSUM Component-A for joint development of agricultural infrastructure and clean energy solutions. |
Extended Credit Guarantee | Extends credit guarantee coverage to FPOs through NABSanrakshan, in addition to CGTMSE, to boost investment confidence. |
PYQ:[2015] With reference to ‘National Investment and Infrastructure Fund’, which of the following statements is/are correct? 1. It is an organ of NITI Aayog. 2. It has a corpus of 4,00,000 crore at present. Select the correct answer using the codes given below: (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 |
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