Saturday, 11 July 2020

One lakh Crore Approved for Agriculture Sector

Farmer
The central government is continuously working to increase farmers' income and facilities. Under this, the Agriculture Infrastructure Fund worth one lakh crore rupees has been approved in the cabinet meeting held on few days back under the chairmanship of Prime Minister Narendra Modi. Read the full article about this scheme and fund. What are the benefits of this ?  

This scheme will facilitate medium and long-term loans for investment in projects for basic infrastructure management and Community Agricultural Assets after harvesting through Financial Support.

These funds are part of the Rs 20 lakh crore incentive package.


An infrastructure infrastructure fund of Rs 1 lakh crore will be set up under the scheme. Entrepreneurs, startups, agriculture technology industry and groups of farmers will be funded from this fund to set up infrastructure facilities and produce maintenance and transport facilities in the agriculture sector.

Giving information, Agriculture Minister Narendra Singh Tomar said that this is a historic decision. This will give a boost to the agricultural sector. He said that funds of one lakh crore rupees will be financially supported by Primary Agricultural Credit Societies (PAC), farmer groups, farmer producer organizations (FPOs), agricultural entrepreneurs, startups and agricultural technology entrepreneurs. 
With this fund, e-marketing centers will be set up for setting up cold store chains, building warehouses, sorting and packing units. This also includes providing agricultural collection centers and maintenance facilities through private-public partnership (PPP) with the help of the central and state governments.

Credit guarantee coverage will also be available through this financing facility.

The loan will be disbursed in 4 years. 10,000 crore in the current financial year and Rs 30,000-30,000 crore in the next three financial years. Under this financing facility, all types of loans will be given a rebate of 3 percent in interest of loans up to Rs 2 crore every year. 

This rebate will be for a maximum period of 7 years. Apart from this, credit guarantee coverage will also be available through this financing facility under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for loans up to Rs 2 crore. Fees will be paid by the government for this coverage.

Moratorium facility to be provided in Agriculture Infrastructure Fund

Under this financing facility, a moratorium will also be provided for repayment of loan, which can be for a minimum of 6 months and maximum of 2 years.

Through the formal credit facility for agriculture and agro-processing based activities, this project is likely to generate employment opportunities in rural areas. 

The management and monitoring of agricultural infrastructure funds will be done through the Online Management Information System (MIS) platform. Committees will be formed at the national, state and district levels for monitoring and feedback. The plan deadline will be for the fiscal year 2020 to 2029.

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