In a significant move to enhance agricultural infrastructure and support the farming community, the Union Cabinet chaired by Prime Minister Narendra Modi, has approved the progressive expansion of the central sector scheme under the Agriculture Infrastructure Fund (AIF). This expansion aims to make the scheme more attractive, impactful, and inclusive, with a focus on building viable farming assets and promoting integrated agricultural projects.
Key Initiatives and Enhancements
The expanded AIF scheme will now include a broader scope of eligible projects, particularly those related to community farming assets. This move is expected to bolster the development of projects that enhance farming productivity and sustainability. Additionally, integrated primary and secondary processing projects will be included in the list of eligible activities under AIF, further strengthening the agricultural infrastructure ecosystem.
Convergence with PM KUSUM Component-A
The scheme will also allow the convergence of Component-A of PM KUSUM with AIF, enabling farmers, farmer producer organizations (FPOs), cooperatives, and panchayats to benefit from both initiatives. This alignment is designed to promote sustainable clean energy solutions alongside agricultural infrastructure development, thereby supporting the dual goals of energy efficiency and farming productivity.
Expanded Credit Guarantee Coverage
To further encourage investment in agricultural infrastructure, the government has proposed extending the AIF credit guarantee coverage for FPOs through NABSanrakshan Trustee Company Pvt. Ltd., in addition to the existing coverage by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). This expansion is aimed at enhancing the financial security and creditworthiness of FPOs, thereby stimulating more investment in the sector.
Impact and Achievements of AIF
Since its launch in 2020, the AIF has been instrumental in supporting the creation of over 6,600 warehouses, 688 cold stores, and 21 silos projects across the country, resulting in an additional storage capacity of approximately 500 LMT. This includes 465 LMT of dry storage and 35 LMT of cold storage capacity, which has the potential to save 18.6 LMT of food grains and 3.44 LMT of horticulture produce annually.
To date, Rs. 47,575 crore has been sanctioned for 74,508 projects under the AIF, mobilizing an investment of Rs. 78,596 crore in the agriculture sector, with Rs. 78,433 crore coming from private entities. These projects have also generated over 8.19 lakh rural employment opportunities, further contributing to the sector’s growth and sustainability.
Government’s Commitment to Agricultural Development
The expansion of the AIF scheme underscores the government’s commitment to strengthening the agricultural sector through the holistic development of farm infrastructure. These measures are expected to drive growth, improve farm incomes, and enhance the overall sustainability of agriculture in the country, supporting the government’s broader vision of a resilient and prosperous farming community.
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