The Department of Agriculture & Farmers Welfare, Ministry of Agriculture and Farmers Welfare, Govt. of India announced Agriculture Infrastructure Fund (AIF) Scheme on 15th May 2020 for farm-gate infrastructure for farmers. The main objective of AIF is to mobilize a medium-long term debt financing facility for investment in viable projects relating to post-harvest management Infrastructure and community farming assets through incentives and financial support in order to improve infrastructure in Indian Agriculture.
Scheme Overview
- Scheme Name: Agriculture Infrastructure Fund (AIF) Scheme
- Other Name: National Agricultural Infra Financing Facility
- Scheme Implemented Year: 2020
- Scheme Modified Date: 01.02.2021
- Scheme Fund allocated: Rs. 1 lakh crore
- Type of Government Scheme: Central Sector Scheme
- Sector Scheme: Ministry of Agriculture and Farmers Welfare
- Website to apply: https://agriinfra.dac.gov.in/
- Helpline No: 011-23604888
- Scheme Type: National Scheme
- Covered States: The Agriculture Infrastructure Fund covers all states across India, including Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Goa, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Punjab, Rajasthan, Sikkim, Tamil Nadu, Telangana, Tripura, Uttar Pradesh, Uttarakhand, and West Bengal.
AIF Scheme Features
- AIF was launched as a part of the Rs. 20 lakh crore stimulus package in response to the COVID-19 crisis
- Agri Infrastructure Fund Scheme is managed and monitored through an online Management Information System (MIS) platform
- Multiple Post-harvest infrastructure types and community farming assets eligible under AIF includes:
- Post-harvest Infrastructure: Storage Parks-Modern silos, Warehouses, Integrated pack-houses, Cold chain infrastructure, Community drying yards, Refridgerated transportation
- Community farming assets: Custom Hiring Centers, IoT/Precision farming assets
Multiple types of stakeholders eligible under Agriculture Infrastructure Fund Scheme:
| STAKEHOLDERS | BENEFICIARY |
| Farmers | Individual farmers |
| Farmer Groups | - Farmer Producer Organisations (FPOs)
- Joint Liability Groups
- Self Help Groups
- Primary Agricultural Cooperative Societies (PACs)
|
| Agri-entrepreneurs | - Individual business owners like millers, food processing units, merchant, storage providers, exporters, etc.
- Supply chain players
- Smart farming
|
| Large businesses | - FMCG players
- Exporters
- Food processors
- Equipment manufacturers
|
| State agencies | - Agricultural Produce Marketing Committees (APMCs)
- Federations of FPOs, SHGs, Cooperatives
- State Warehousing Corporations
|
Funding Pattern:
| Category | Remarks |
| Funding Institutions | - Scheduled Commercial Banks
- Scheduled Cooperative Banks
- Small Finance Banks
- Regional Rural Banks
- Non-Banking Financial Companies (NBFCs)
- National Cooperative Development Corporation (NCDC)
|
| Size of Fund | Rs. 1 lakh Crore – Will be provided by banks and financial institutions as loans to eligible beneficiaries |
| Interest Subvention | 3% per annum up to loan amount of Rs. 2 Cr (NABARD loans for PACS at 1% post subvention) |
| Duration | Available for period of maximum 7 years |
| Moratorium Period | - Minimum: 6 months
- Maximum: 2 years
|
| Loan Disbursement (6 years) | - FY 2020-21: Rs.4000 crores sanctioned
- FY 2021-22: Rs.16000 crores (of the balanced amount)
- FY 2022-23 to 2025-26: Rs.20000 crore per year
|
| Period of Financial facility | Upto 2025 – 26 (6 years) |
| Credit Guarantee | Under Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE) scheme for loan up to Rs.2 Crore |
Agriculture Infrastructure Fund Benefits:
- The improved marketing infrastructure will help farmers to sell their products directly to a larger base of consumers which increases value realization for the farmers. This helps farmers by improving their overall income
- Farmers can decide when to sell in the market and improve realization with the access to modern packaging and cold storage system
- With the given fund source, entrepreneurs will push for innovation in the agricultural sector by leveraging modern technologies like IOT and AI. This will also improve avenues for collaboration between entrepreneurs and farmers
Latest News about the AIF Scheme:
- Disbursal of funds to strengthen agriculture infrastructure through setting up of warehouses/silos and other projects under the Rs. 1 lakh crore Agriculture Infrastructure Fund (AIF) has been slow as Primary Agri Cooperative Societies (PACS) have been lagging in setting up the much required infrastructure.
- Cabinet approved modifications in the guidelines of AIF Scheme which focuses to help achieve multiplier effect in driving investments.
- Eligibility criteria extended to include more beneficiaries
- Number of projects per beneficiary is increased from 1 project to 25 projects
- APMCs can setup multiple projects in same location of various types
- Duration of the Scheme extended from 4 to 6 years (Extended Upto 2023-33)
Agriculture Infrastructure Fund Drawbacks:
Issues in loan disbursal in AIF is one of the drawback of the scheme.
- Disbursal of fund is slow under AIF as PACs have been lagging in setting up of much-required infrastructure. Conditions specified by the PACS to disburse credit, based on the physical progress of the projects, is the reason for the poor progress with only 4% of sanctioned amount disbursed.
How to Apply:
Online application process setup for the National Agriculture Infrastructure Fund scheme is simple.
- If you are eligible to avail this scheme, you can register online in AIF portal
- Go to the browser and type https://agriinfra.dac.gov.in/Home/Login
- In the top right corner of the page, you can see ‘Beneficiary’. Click it and under that click on ‘Registration’
- Fill in your details: Name, Mobile Number and Aadhaar Number
- Then, click on ‘Send OTP’. Enter the OTP received in your mobile number and then click on ‘Verify’
- Fill your other details which includes Beneficiary type and Address and click on ‘Submit’
- You will then get ‘Registration Successful’. You will also get your Unique Beneficiary Registration Number. Save it for future use
- Then, Go the Homepage. Click on ‘login’ seen on the top right corner of the page
- Type your Email/Beneficiary ID and click on ‘login’ below
- On the left side of the page, click on ‘Loan Applications’
- Fill the details asked I.e., Project Details (Project name, Description, Project cost, Annual Revenue), Project Address, Project Geo-location, Loan Details. Then upload the Detailed Project Report (DPR) and then click on ‘submit’. Now your application is successfully submitted
- Post submission of application, it will be reviewed by the ministry and eligible applications will be approved
- After the approval by Ministry, application will be transferred digitally to the selected bank or credit appraisal
- Bank will review your project for viability and accordingly sanction the project
- You will receive message to your registered mobile number at all stages with status update
Documents Required For Agri Infra Fund:
- Application form of Bank’s loan or Customer Request Letter for AIF Loan duly filled and attested
- Passport size photographs of the promoter/partners/director
- Identity Proof – Aadhaar card/PAN card/Voter ID Card/Driving license
- Address Proof
- Residence: Aadhaar card/PAN card/Voter ID Card/Driving license/Electricity bill/Passport/Latest property Tax Bill
- Business Office/Registered Office: Electricity Bill/Latest Property Tax Receipt/Certificate of Incorporation in case of Companies/Certificate of Registration in case of partnership firms
- Proof of Registration
- In case of company: Article of Association
- In case of Partnership: Certificate of Registration of Firm with Registrar of Firm
- In case of MSMEs: Udyog Aadhaar Copy/Certificate of Registration with District Industries Centre (DIC)
- Income Tax return for last 3 years (if available)
- Audited Balance Sheet of last 3 years (if available)
- GST Certificate (if applicable)
- Land ownership records
- ROR Search Report of the company
- KYC documents of the company/firm/promoter
- Copy of bank Statement for last 1 year (if available)
- Repayment track record of the existing loans (Loan Statement)
- Net worth Statements of promoter
- Detailed project Report (DPR)
- Local authority permissions, Building sanction, Layout plans/estimates (As applicable)
Conclusion:
Agricultural Infrastructure Fund (AIF) a.k.a National Agriculture Infra Financing Facility Scheme aims to provide financial support for agriculture entrepreneurs in order to improve infrastructure in Indian Agriculture. The Scheme will facilitate modernization and setting up of key elements of the Agri value chain.
For more government schemes supporting sustainable farming, check out the Paramparagat Krishi Vikas Yojana – PKVY Scheme.