The Central government through the Union Agriculture Ministry has tentatively allocated Rs 190 crore as financing facility under Agriculture Infrastructure Fund.
This Central Sector Scheme was formulated to mobilise 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.
The scheme shall be in effect for ten years – from 2020 to 2029.
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 a loan up to Rs 2 crore. The fee for this coverage will be paid by the government.
In case of Farmer Producer Organisations (FPOs) the credit guarantee may be availed from the facility created under FPO promotion scheme of the Department of Agriculture, Cooperation and Farmers Welfare (DACFW).
All loans under this financing facility will have interest subvention of 3 per cent per annum up to a limit of Rs 2 crore. This subvention will be available for a maximum period of seven years.
In case of loans beyond Rs 2 crore, then interest subvention will be limited up to Rs 2 crore.
The extent and percentage of funding to private entrepreneurs out of the total financing facility may be fixed by the National Monitoring Committee.