Looking to the importance of the Infrastructure in Agriculture Sector and lack of sufficient required infrastructure, the Hon’ble Prime Minister, Govt. of India, launched “Agri Infrastructure Fund Scheme” on 09.08.2020 for granting financial assistance at subsidized interest rates to the farmers/ entrepreneurs etc. Under the scheme, Fund with an amount of Rs. One lakh crore has been earmarked for financing through Banks for setting up of identified Agri Infrastructure Projects across the Country. Out of this Fund, an amount of Rs. 925 Crore has been allocated for the state of Himachal Pradesh. The brief particulars of the Scheme are as under:-

• The dedicated portal for the scheme available on internet is – “agriinfra.dac.gov.in”
• Period for financing under the scheme is: 08.07.2020 to 31.03.2026.

Eligible Applicants: Farmers, Agri Entrepreneurs, SHGs, FPOs, JLGs, PACS, Agri Marketing Agencies, Companies, State Agencies etc.

Eligible Projects: Cold Storage & Cold Chain, Warehouse, Nursery, Projects for Primary processing of Agriculture Produce (Flour Mill, Daal Mill, Oil Mill, Rice Mill etc.), Fruit Sorting Grading Units, Modern & Precision Agriculture, Packaging Units, Assaying Units, Logistic Facilities- Reefer Van & Insulated vehicles, Fruit Ripening Chambers, Farm residue/ waste management infrastructures, Organic Input Production etc. In addition to above, Projects eligible only for groups (viz. SHG, JLG, FPO, PACS, Cooperatives etc.) are – Hydroponic Farming, Mushroom farming, Vertical farming, Aeroponic farming, Poly house/ Greenhouse, Logistics facilities (including non- refrigerated/ insulated vehicles), Tractors. Bank loan up to 90% of Project Cost is available at maximum interest rate of 9%. Margin (promoter contribution) minimum 10%. Facility is available only for Term Loans and not for Working Capital.

Benefits:

1. 3% interest subvention on the above Bank Term loan for a loan amount maximum up to Rs. 2.00 crores & for maximum up to repayment period of 7 years (on reimbursement basis.
2. Reimbursement of CGTMSE fee for loan up to Rs. 2 Crore and for maximum up to repayment period of 7 years.
3. Convergence – Existing Bank borrowers and beneficiaries of other Govt. subsidy schemes (AIF eligible activities) may also apply for benefits under the scheme (T&C apply).
4. Existing Bank borrowers, who availed Term Loans on or after 08.07.2020, for setting up of AIF eligible Projects may also apply for benefits under AIF scheme provided Bank rate of interest is not more than 9%.

One eligible applicant may avail benefits for setting up of up to 25 Projects (conditions apply). Bank may sanction loan for more than Rs. 2.00 crores and for repayment period of more than 7 years also, depending on requirement of project & DPR.

Guidelines of Agriculture Infrastructure Fund (July 2021) – DOWNLOAD

For more details refer to AIF Portal – Click Here