Introduction: AIF Interest Subsidy
Period of Scheme
The Scheme will be operational from 2020-21 to 2032-33. Loan disbursement under the scheme will complete in six years, i.e. by the end of Financial Year 2025-26
Government Budgetary Support
Sl. No. | Name of Component | Norms |
1 | Interest Subvention Cost | – Interest subvention of 3% per annum on loans up to ₹2 crore. – Subvention available for a maximum of 7 years. – For loans above ₹2 crore, subvention is limited to the first ₹2 crore only. |
2 | Credit Guarantee Cost | – Credit guarantee coverage under CGTMSE for loans up to ₹2 crore. – Government will pay the fee for the coverage. – FPOs may avail credit guarantee from: • CGTMSE • FPO promotion scheme (DA&FW and NABSanrakshan Trustee Co. Pvt. Ltd.) – FPOs also eligible for reimbursement of guarantee fee under AIF. |
3 | Administration Cost of PMU | – Farmers Welfare Programme Implementation Society (DA&FW) will provide central-level PMU support. – States/UTs to set up State-level PMUs with DA&FW financial assistance. – PMUs responsible for: • Creating awareness • Identifying clusters • Mobilizing applications • Reviewing stakeholders • Providing handholding support |
Eligible Projects
-
Post-Harvest Management Projects
- Supply chain services including e-marketing platforms
- Warehouse & Silos
- Cold Stores and Cold Chain
- Packaging Units
- Assaying Units
- Sorting and grading units
- Logistic Facilities- Reefer Van & Insulated vehicles
- Ripening Chambers
- Farm residue/waste management infrastructures
- Primary Processing activities*
- Integrated primary and secondary processing activities**
-
Viable Farming Assets
- Organic inputs production – Vermicomposting etc.
- Compressed Biogas ( CBG) Plant
- Bio stimulant production units
- Infrastructure for smart and precision agriculture -Purchase of drones, boom sprayer,
- putting up specialized sensors on field, Blockchain and AI in agriculture etc. ,Remotesensing and Internet of Things (IOT) such as automatic weather station, Farmadvisory services through GIS applications.
- Nursery
- Tissue culture
- Seed Processing
- Custom Hiring Center –farm machinery/ implements ( minimum of 4 in quantity)
- Farm/Harvest Automation (combine harvestor, sugarcane harvestor etc.)
- Setting up of Decentralized Ground/ Stilt Mounted Grid Connected Solar based Power
Plants (PM-KUSUM component A)
- Standalone solar pumping system (PM-KUSUM component B)
- Solarization of grid connected agri-pump under PM-KUSUM component C
- Integrated Spirulina production & processing units
- Sericulture processing unit
- Honey processing
- Plant quarantine units
- Projects identified for providing supply chain infrastructure for clusters of crops including export clusters.
- Projects promoted by Central/State/Local Governments or their agencies under PPP for building viable farming assets or post-harvest management projects.
- Hydroponic Farming
- Mushroom farming
- Vertical farming
- Aeroponic farming
- Poly house/ Greenhouse
- Logistics facilities (including non-refrigerated/insulated vehicles)#
- Tractor
Size of the financing facility and eligible beneficiaries
₹ 1 Lakh Crore to be provided by banks and financial institutions as loans to Primary Agricultural Credit Societies (PACS), Marketing Cooperative Societies, Farmer Producers Organizations(FPOs), Self Help Group (SHG), Farmers, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Startups and Central/State agency or Local Body sponsored Public Private Partnership Projects, State Agencies, Agricultural Produce Market Committees (Mandis), National & State Federations of Cooperatives, 11 Federations of FPOs (Farmer Produce Organizations) and Federations of Self Help Groups (SHGs). APMCs operating regulated markets for agriculture and allied sector produce including fisheries shall also be eligible.
Number of Projects per entity eligible under the scheme
Interest subvention for a loan upto ₹2 crore in one location is eligible under the scheme. Multiple projects in one location are also eligible with an overall cap of ₹2 crore. ln case, one eligible entity puts up projects in different locations then all such projects will be eligible under the scheme for loan upto ₹2 crore
