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Cabinet Redesigns Agriculture Infrastructure Fund, Strengthens Infrastructure

AIF is poised to enhance growth, improve productivity, increase farm incomes and contribute to the sustainability in agriculture

By Vaishali Mehta
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Cabinet Redesigns AIF to Strengthen Agricultural Infrastructure

In a significant move to enhance and strengthen the agricultural infrastructure of the country, Union Government has approved the expansion of Central Sector Scheme of financing facility under ‘Agriculture Infrastructure Fund’ (AIF) to make it more impactful and inclusive.

The scheme will be redesigned to enhance financial security for Farmers Producers Organisations (FPOs). A series of measures to expand the scope of AIF scheme was announced. These initiatives aim at expanding the scope of eligible projects and integrate additional supportive measures to foster a robust agricultural infrastructure ecosystem.

Initiatives to expand AIF

Viable Farming Assets: To allow all eligible beneficiaries of scheme for creation of infrastructure covered under ‘viable projects for building community farming assets’. This move is expected to facilitate the development of viable projects that will enhance community farming capabilities, thereby improving productivity and sustainability in the sector.

Integrated Processing projects: To include integrated primary secondary processing projects in list of eligible activities under AIF. However standalone secondary projects would not be eligible and would be covered under Ministry of Food Processing Industries (MoFPI) schemes.

PM KUSUM Component-A: To allow convergence of Component-A of PM-KUSUM with AIF for farmer/group of farmers/ FPOs/ Cooperatives/ Panchayats. The alignment of these initiatives aims to promote sustainable clean energy solutions alongside the development of agricultural infrastructure.

NABSanrakshan: In addition to Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), it is proposed to extend AIF credit guarantee coverage of FPOs through the NABSanrakshan Trustee Company Pvt. Ltd. also. This expansion of credit guarantee options is intended to enhance the financial security and creditworthiness of FPOs, thereby encouraging more investments in agricultural infrastructure projects.

The expansion in the scope of AIF scheme is poised to enhance growth, improve productivity, increase farm incomes and contribute to the overall sustainability of agriculture in the country. These measures also underscore the government’s commitment to strengthening the agricultural sector through holistic development of farm infrastructure in the country.

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