Cabinet extends Agri Infra Fund loans to APMCs

Cabinet extends Agri Infra Fund loans to APMCs

Subject : Governance

Context : The Centre has decided to allow state-run market yards to access financing facilities through its Agricultural Infrastructure Fund to calm the fears of protesting farmers that such market yards are being weakened.

Concept :

• It is a central sector scheme

Aim:

• To provide medium – long term debt financing facility for investment in viable projects for post-harvest management Infrastructure and community farming assets.
• The funds will be provided for setting up of cold stores and chains, warehousing, grading and packaging units, e-marketing points linked to e-trading platforms, besides PPP projects for crop aggregation sponsored by central/state/local bodies.
• Duration: Financial Year 2020 to 2029.

Eligible Beneficiaries:

• They are 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 (PPP) Projects.
• Financial Support: 1 Lakh Crore will be provided by banks and financial institutions as loans to eligible beneficiaries.
• Moratorium for repayment may vary subject to minimum of 6 months and maximum of 2 years.
• Interest Subvention: Loans will have interest subvention of 3% per annum up to a limit of Rs. 2 crore. This subvention will be available for a maximum period of seven years.
• CGTMSE Scheme: A credit guarantee coverage will be available for eligible borrowers from the scheme under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan up to Rs. 2 crore.