PM Modi launches financing facility under Agriculture Infrastructure Fund

Andrew Cummings
August 10, 2020

"Imagine the spread of Covid in the country had the situation remained the same like pre-2014", Modi said, adding that physical distancing, among others, would have been hard to maintain in the absence of toilets at home.

The Cabinet has approved the Central Sector Scheme of financing facility under "Agriculture Infrastructure Fund" of Rs. 1 Lakh Crore.

The scheme will provide better warehousing and cold storage facilities for farmers, Modi said, adding, new jobs will be created as food processing and post-harvest facilities are set up in rural areas.

The duration of the scheme will be from FY20 to FY29 (10 years).

Modi subsequently watched a short video on "Swachh Bharat Mission" at the Rashtriya Swachhata Kendra.

The beneficiaries of the scheme will include farmers, PACS, Marketing Cooperative Societies, FPOs, SHGs, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Startups, and Central/State agency or Local Body sponsored Public-Private Partnership Projects. Farmers will also receive a subsidy ot three percent on interest, on loan amounting to 2 crore or less up to seven years.

There will be no financial outgo in the current fiscal as the moratorium for repayment under this financing facility may vary subject to a minimum of six months and a maximum of two years.

The government regarding the package maintained that the farmers will be able to avail a greater value for their produce.

This will provide an impetus for development of other financially viable post-harvest management infrastructure, as per the government.

The credit guarantee is just the sort of support the banks have been insisting on before they work up their confidence to lend at all. He said it boosts confidence of people, especially women.

"What's heartening is that the small farmers are at the core of this Rs 1 trillion agriculture infrastructure fund".

Karnataka Chief Minister B S Yediyurappa on Sunday said the PM Kisan Scheme has benefited 52.5 lakh farmers in the state and that the first instalment of Rs 1,049 crore will be credited into their accounts. "The scheme has also been instrumental in supporting farmers during the COVID-19 pandemic, through the release of almost Rs 22,000 crores to aid the farmers during the lockdown period", the release said.

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