PM Modi to Launch Agri-Infra Fund for providing Farm Credit

The Prime Minister Narendra Modi is going to launch a financing facility of Rs 1 lakh crore under Agriculture Infrastructural Fund on August 8. The government approved this fund in order to extend subsidized credit for farm infra projects in the country.

What is Agri-Infra Fund?

This is part of the Rs 20 lakh crore stimulus package announced by the government during the COVID 19 Pandemic in the country. The salient features of the fund are:

• The fund will be operational for 10 years till 2029.
• The objective is to provide a medium-to-long-term debt financing facility for investment in viable projects for post-harvest management infra and community farming assets through interest subvention and financial support.
• This will also work towards attracting the private sector towards the agriculture industry and generate more employment in the rural areas of the country.
• Under this program, Rs 1 lakh crore will be provided by banks and financial institutions as loans to primary Agri credit societies, farmer groups, farmer producer organizations, agri-entrepreneurs, startups and agri-tech players.
• Loans will be disbursed in four years under this scheme starting with Rs 10000 crore in the current year and Rs 30000 crore each in the next three years.
• All loans will have interest subvention facility of 3% per annum up to a limit of Rs 2 crores.
• The interest subvention will be available for a maximum period of seven years.

How will this fund be managed?

This will be managed through an online Management Information System platform and it will enable all the qualified entities to apply for a loan under the fund. This platform will maintain transparency of interest subvention and proper management.

Month: Current Affairs - August, 2020