In the Union Budget 2021-22, Finance Minister, Nirmala Sitharaman, announced that Agricultural Produce Marketing Committees (APMCs) will become eligible beneficiaries to utilize the 1 lakh crore financing facility under Agriculture Infrastructure Fund (AIF) to enhance infrastructure at regulated markets, commonly known as Mandis.
What is Agriculture Infrastructure Fund (AIF)?
- The AIF is a medium – long term debt financing facility for investment in viable projects for post-harvest management infrastructure and community farming assets through interest subvention and credit guarantee.
- The duration of the scheme is from FY2020 to FY2029.
- Under the scheme, Rs. 1 Lakh Crore will be provided by banks and financial institutions as loans with interest subvention of 3% per annum and credit guarantee coverage under CGTMSE for loans up to Rs. 2 Crore.
- The beneficiaries include farmers, FPOs, PACS, Marketing Cooperative Societies, SHGs, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Start-ups, and Central/State agency or Local Body sponsored Public-Private Partnership Projects, and now APMC mandis.
