AIF raised 30,000+ crores for agricultural infrastructure projects

January 25, 2023
Current Context: The Ministry of Agriculture & Farmers Welfare (MoA&FW) has announced that the Agriculture Infrastructure Fund (AIF) has raised over 30,000 crore rupees in capital for agricultural infrastructure projects, with a sanctioned amount of 15,000 crore rupees.
AIF raised 30,000+ crores for agricultural infrastructure projects
  • The AIF is a financing facility introduced on July 8, 2020, to create post-harvest infrastructure and community farm assets throughout India. It was created as a Central Sector Scheme (CSS) by the Department of Agriculture and Farmers Welfare (DA&FW), MoA&FW.
  • The scheme aims to disburse 1 lakh crore rupees by the fiscal year 2025-26, and will provide interest subvention and credit guarantee support until 2032-33.
  • The financing facility will fund agricultural infrastructure projects at farm-gate and aggregation points, such as Primary Agricultural Cooperative Societies, Farmer Producer Organizations (FPOs), agriculture entrepreneurs and start-ups. It also supports other groups, such as Self Help Groups (SHGs) and Joint Liability Groups (JLGs).
  • Eligible borrowers will have access to credit guarantee coverage for loans up to 2 crore rupees under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme.
  • The financing facility offers a 3% annual interest subsidy on all loans, up to a maximum of 2 crore rupees, for a maximum period of 7 years. Additionally, it allows for convergence with all Union or State government schemes.
  • The infrastructure projects will help farmers get better prices for their produce, modernise agricultural programs and practices, and reduce post-harvest losses.

Question:

Q.1 Which of the following statements is true according to the Ministry of Agriculture & Farmers Welfare (MoA&FW)?
a. The Agriculture Infrastructure Fund (AIF) has raised more than Rs. 30,000 crore in capital for agricultural infrastructure projects
b. The Agriculture Infrastructure Fund (AIF) has a sanctioned amount of Rs. 50,000 crore for agricultural infrastructure projects
c. Both A and B
d. None of the above

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