FAQs

The scheme covers post-harvest management projects like supply chain services including e-marketing platforms, warehouse, silos, pack-houses, assaying units, sorting & grading units, cold chain, logistics facilities, primary processing centers, ripening chambers and other viable projects for building community farming assets such as organic input production, bio stimulant production units, infrastructure for smart and precision agriculture, supply chain infrastructure for clusters of crops including exports clusters etc.

The scheme is limited to primary processing units. Advanced processing activities are not a part of the scheme. However, some components of such processing units like warehouse, assaying units, sorting & grading units, cold storages, pack-houses, collection centers, ripening chambers, logistics facilities etc. can get benefit of agriculture infrastructure fund.

The scheme will support private investment and investment by farmers’ collectives like PACS, National/ State level federations of Cooperatives, FPOs, federations of FPOs & SHGs and investment by APMCs & State Agencies etc. in agriculture infrastructure with the support of central government funding in terms of interest subvention and credit guarantee fund.

The Scheme will be operational from 2020-21 to 2032-33. However, the loan disbursement period will be between 2020-21 and 2025-26. Interest subvention and credit guarantee for loan will be applicable only for 7 years from the date of first disbursement of loan.

All loans up to a limit of ₹ 2 crores under this financing facility will have interest subvention of 3% per annum. This subvention will be available for a maximum period of 7 years. In case of loans beyond ₹ 2 crores, the interest subvention will be limited up to ₹ 2 crores.

The moratorium period will vary from project to project and up to a maximum period of two years.

The interest subvention will be available for a maximum period of seven years including moratorium period.

An applicant can put up to 25 projects in different locations and each of such projects will be eligible under the scheme for loan up-to ₹ 2 crore. Limitation of 25 projects is not applicable to state agencies, national and state federations of cooperatives, federations of FPOs and federation of SHGs.

‘Different Location’ means physical boundary of a village or town having a distinct LGD (Local Government Directory) code. Each of such project should be in a location having a separate LGD (Local Government Directory) Code.

APMCs are eligible for multiple projects (of different infrastructure types) within their designated market area.

The scheme does not have a minimum or maximum loan cap. However, an eligible beneficiary can obtain the maximum benefit of loan upto ₹ 2 crores per project.

As per the MoUs signed with lending institutions, the maximum rate of interest will be 06 monthly/ Annual MCLR plus 100 basis point (floating) subject to maximum 9.00 % (whichever is lower).

Banks may decide market driven interest rate beyond the subvention scheme amount.

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 loans up to ₹ 2 crores. 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 DA&FW.

The interest subvention is restricted up to the limit of ₹ 2 crores per project. The credit guarantee is restricted for the loans upto ₹ 2 crores per beneficiary.

The scheme will facilitate setting up and modernization of key elements of the agri value chain. The mentioned infrastructures in the guidelines are indicative in nature. Other viable agriculture infrastructure projects under similar category, apart from the mentioned indicative projects are also eligible for the scheme benefits.

The eligible entities under this project are:

Agri-Entrepreneur
Agricultural Produce Market Committees (APMCs)
Central/State agency or Local Body sponsored Public Private Partnership Projects
Farmer
Farmer Producers Organizations (FPOs)
Federations of FPOs
Federations of Self Help Groups (SHGs)
Joint Liability Groups (JLG)
Marketing Cooperative Societies
Multipurpose Cooperative Societies
National level federations of Cooperatives
Primary Agricultural Credit Societies (PACS)
Self Help Group (SHG)
Start - Ups
State Agencies
State level federations of Cooperatives

All scheduled commercial banks, scheduled cooperative banks, Regional Rural Banks (RRBs), Small Finance Banks, Non-Banking Financial Companies (NBFCs) and National Cooperative Development Corporation (NCDC) may participate to provide this financing facility, after signing of Memorandum of Understanding (MoU) with National Bank for Agriculture & Rural Development (NABARD)/DA&FW.

DCCBs with whom PACS are affiliated are eligible to participate under agri infra fund scheme.

The applicant will register on the online portal after which he/ she will receive registration credentials.
After getting credentials, beneficiary can apply for loan through the online portal by filling an application form available on the portal.
Along with the application, soft copy of Detailed Project Report(DPR) and related documents will be uploaded on the portal by applicant.
This application will be verified by Central PMU at Ministry and will then be forwarded to the lending institution opted by the applicant on the portal.
The lending institute will appraise the project and decide whether to sanction the loan or reject the application based on viability of project.
After the disbursal of loan to beneficiary by lending institute, interest subvention and credit guarantee fee will be released by GOI to the lending institute based on the claim submitted by the lending institute.

The time limit to convey the decision on the loan application to the applicant is set for a maximum period of 60 days from the date of application of the loan.

The subvention will be allowed only till the account is under standard category. Further, if the account slips into NPA, no subvention will be allowed during the period account remains under NPA category. The subvention will further be allowed from the date of upgradation of the account to standard category. Once the account is upgraded to standard category it will be eligible to receive the subvention for the period in which the account was under NPA category.

There is no capital or margin subsidy available under Agri Infra Fund Scheme.

The lending institutions can expand their credit with lower risk and to diversified portfolio by making use of credit guarantee incentive and interest subvention available under the scheme. RRBs and cooperative banks may enlarge their size through refinance available under the scheme.

If required, need based refinance support will be made available by NABARD to all eligible lending entities including cooperative banks and RRBs as per its policy.

DCCBs don’t need credit guarantee because PACS are already affiliated to them.

An online platform (www.agriinfra.dac.gov.in) has been made available in collaboration with participating lending institutions to provide information and loan sanctioning facility. It will enable all the qualified entities to apply for loan under the fund.
The system will also provide benefits such as transparency of interest rates offered by multiple banks, scheme details including interest subvention and credit guarantee offered etc.
At the back end, the platform will also provide multiple views of dashboards across district; state and national level PMUs to monitor the total sanctioned amount and number of borrowers, total interest subvention benefit availed, loan statement summary, demographic and geographic mix of borrowers and type of projects etc.
Farmers Welfare Programme Implementation Society under DA&FW will provide PMU support to the scheme at the central level and state PMUs of PM KISAN at state level. Services of knowledge partners will be used to identify clusters including export clusters and gaps in supply chains to target projects and support for preparation of viable project reports.

Yes, loan can be availed through offline mode but it is mandatory for lending institutions to make its entry on the online platform in due course of time to get the benefits of AIF.

Agriculture Infrastructure Fund Scheme is a top-up scheme along with all other available state and central government schemes. Any grant or subsidy available under any present or future scheme of Central/State government can be availed for projects in addition to this financing facility. In cases of capital subsidy such amount shall be considered as promoter’s contribution. However, a minimum of 10% of the project cost shall be mandatory as promoter’s contribution

Yes, agri infra fund can be dovetailed with other interest subvention schemes and accordingly, calculated interest rate will be interest applicable minus 3%. In case of PACS seeking this fund, the effective rate may be as low as 1% per annum.

Participating lending institutions will decide criteria for selection of eligible borrower as per their own policy, keeping in mind the viability of the projects.

Yes, it is mandatory for borrowers to contribute at least 10% of total project cost irrespective of available capital subsidy.

Interest subvention and credit guarantee support will be released to Banks and lending institutions through PFMS.

The scheme will be re-visited by Department of Expenditure after disbursement of ₹ 20,000 crores is completed, for evaluation and midcourse correction if required. Concurrent/mid-term third party independent evaluation of the scheme in addition to end- line evaluation will be conducted as and when required.

To monitor the scheme, Monitoring Committees will be set up at National, State and District levels. This will to ensure real-time monitoring and effective feed-back on the implementation of the scheme.

There is no restriction for such projects. However, MoU may be signed in such case between the PACS, where one PACS can act as a lead and others can sign MoU with it.

PSUs are directly not eligible under the scheme, but projects sponsored by them under PPP are eligible.

The loan under the eligible infrastructures whose first disbursement are made on or after 8th July 2020 are eligible to get the benefit under the scheme.

The state wise allocated target is indicative in nature and calculated based on the share of the state in agriculture production of the country. However, based on the performance of the state under AIF, the allocated financial facility may be revised within the overall financial limit of ₹1 lakh crore under the fund.

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Benefit Under Other Schemes

FAQs

1. What is the coverage of the scheme?

2. Whether processing units also covered under the scheme?

3. Whether the scheme will increase the public sector investment in agriculture infrastructure?

4. What is the implementation period of the scheme?

5. What is the interest subvention cost being borne by the Government?

6. What is the moratorium period for the project under the scheme?

7. Whether the interest subvention will be allowed for moratorium period of the project?

8. How many projects can be put up by any applicant?

9. What is the meaning of ‘different location’ in case of applicant applying for more than one project under the scheme?

10. How many projects will be eligible for APMCs?

11. Whether there is cap of minimum or maximum loan quantum under AIF Scheme?

12. Is there a cap on the lending rate?

13. What will be the lending rates for loans of Agri Infrastructure Projects above ₹ 2 crores?

14. What is the credit guarantee coverage available for eligible borrowers?

15. Is interest subvention and credit guarantee available beyond loan of ₹ 2 crores under the scheme?

16. Can the eligible entity choose a project other than mentioned in the scheme under Agriculture Infrastructure Fund scheme?

17. Who can avail financing from this scheme?

18. Which are the participating institutions in this central sector scheme?

19. DCCBs are not scheduled commercial bank. Are they eligible to participate in agri infra fund scheme?

20. What is the process flow of the scheme?

21. How much time will it take to get the decision from the lending institutions on the loan application?

22. What is the terms of interest subvention for such accounts which become NPA?

23. Is there any capital subsidy/ margin subsidy available from the central government under the scheme?

24. How the scheme is beneficial for the financial institutions / lenders?

25. Is refinance facility available from NABARD?

26. As DCCBs are not part of CGTSME framework, so how their credit guarantee will be taken care of?

27. What is the project management and handholding support available under the scheme?

28. Can loan be availed by offline mode?

29. Will the scheme encourage convergence with other schemes?

30. Under the scheme of NABARD; Multipurpose Service Centre Scheme for PACS, allowed activities are similar to that of agri infra fund. The provision under the scheme is that this can be refinanced by NABARD at a rate of 3%. Is it allowed to converge agri infra fund with this scheme of NABARD?

31. What are the criteria for selection of eligible borrowers?

32. Is borrower’s contribution mandatory to become eligible under the scheme?

33. What is the linkage of the scheme with PFMS?

34. Will the scheme be reviewed at any point of time in future?

35. How will the scheme be monitored?

36. If 2-3 PACS in a cluster interested to take the benefit of agri infra fund together, how should they go about it?

37. Are public sector undertaking (PSU) organizations eligible to get the benefit under the scheme?

38. From which date onwards the borrowers will get the benefit of interest subvention?

39. What will happen if a state/UT achieve its allocated target beforehand and still there are some more eligible project applications pending or state wants larger financial facility than the allocation?

Beneficiary Corner