The Union Cabinet in July 2020 has approved a new pan India Central Sector Scheme called Agriculture Infrastructure Fund (National Agriculture Infra Financing Facility). The scheme shall provide a medium - long term debt financing facility for investment in viable projects for post-harvest management Infrastructure and community farming assets through interest subvention and financial support.
The duration of the Scheme shall be from FY2020 to FY2032 (10 years).
Agricultural Produce Market Committee
Central sponsored Public-Private Partnership Project
Farmer Producers Organization
Federation of Farmer Produce Organisations
Joint Liability Groups
Local Body sponsored Public-Private Partnership Project
State sponsored Public-Private Partnership Project
All loans under this financing facility will have interest subvention of 3% per annum up to a limit of Rs. 2 crore. This subvention will be available for a maximum period of seven years.
Further, credit guarantee coverage will be available for eligible borrowers from this financing facility under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan up to Rs. 2 crore. The fee for this coverage will be paid by the Government.
In case of FPOs the credit guarantee may be availed from the facility created under FPO promotion scheme of Department of Agriculture, Cooperation & Farmers Welfare (DACFW).
Moratorium for repayment under this financing facility may vary subject to minimum of 6 months and maximum of 2 years.