Lok Sabha Question No. 266 (UNSTARRED), answered on 2020-09-15
Subject: Agriculture Infrastructure Fund
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Geetha Viswanath Vanga, Kotha Prabhakar  Reddy

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA

## UNSTARRED QUESTION NO. 266

TO BE ANSWERED ON THE 15 TH  SEPTEMBER, 2020

## AGRICULTURE INFRASTRUCTURE FUND

## 266.      SHRIMATI VANGA GEETHA VISWANATH: SHRI KOTHA PRABHAKAR REDDY:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether  the  Government  has  launched  a  new  financing  scheme  under  the  Rs.1 lakh  crore  Agriculture  Infrastructure  Fund  meant  for  setting  up  storage  and  processing facilities to help farmers get higher prices for their crops; and
- (b) if so, the  details  thereof  and  progress  made,  State-wise,  along  with  funds sanctioned/spent so far and pending works likely to be completed?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

(a) & (b): Yes,  Sir.  Central  Sector  Scheme  of  Financing  Facility  under  Agriculture Infrastructure Fund was approved by Cabinet on 08.07.2020.

The  scheme  shall  provide  a  medium  -  long  term  debt  financing  facility  for investment in viable projects for post-harvest management Infrastructure and community farming  assets  through  interest  subvention  and  financial  support.  The  duration  of  the Scheme shall be from FY2020 to FY2029 (10 years).

Under  the  scheme,  Rs.  1  Lakh  Crore  will  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, Agrientrepreneurs, Startups and Central/State agency or Local Body sponsored Public Private Partnership Project.

All loans under this financing facility 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 7 years. Further, credit guarantee coverage will be available for eligible borrowers from this financing  facility  under  Credit  Guarantee  Fund  Trust  for  Micro  and  Small  Enterprises (CGTMSE) scheme for a loan up to Rs. 2 crore. The fee for this coverage will be paid by the  Government. In case of FPOs the credit guarantee may be availed from the facility created  under  FPO  promotion  scheme  of  Department  of  Agriculture,  Cooperation  & Farmers Welfare  (DACFW).  Moratorium  for  repayment  under  this  financing  facility  may vary subject to minimum of 6 months and maximum of 2 years.

So far as progress under the scheme is concerned, the operational guidelines of the scheme have been circulated to all States/UTs on 17 th July, 2020. Various meetings to quickly roll out the scheme have been held by DAC&FW with all States/UTs Governments and other stakeholders.    Memorandum of Understandings (MoUs) with  all  twelve  public sector banks, IDBI and Yes Bank have been signed by DAC&FW. A portal for the scheme has been created.  The scheme has been formally launched by Hon'ble Prime Minister of India on 09.08.2020,  only 30 days after Cabinet formally approved the scheme and  the first  in-principle  sanction of Rs. 1128 Crore was made to over 2,280 farmer societies by NABARD.  So  far  NABARD  has  received  3055  proposals  of  PACs  through  state cooperative banks in 22 states for which in-principle sanction of Rs. 1568 Cr. has been accorded. The details are at Annexure - A . The scheme has already been rolled out and doing well as such there is no pending works on part of Government of India.

## Annexure-A

Annexure referred to in reply of part (b) of the Lok Sabha Unstarred Question No. 266 due for answer on 15.09.2020.

Amount in Rs. Lakh

| S.No.       | States            |   No. of Projects |   Estimated Project Cost |   Estimated Bank Loan |
|-------------|-------------------|-------------------|--------------------------|-----------------------|
| 1           | Andaman & Nicobar |                 3 |                       45 |                    34 |
| 2           | Andhra Pradesh    |               347 |                    34457 |                 31011 |
| 3           | Assam             |                 7 |                      296 |                   267 |
| 4           | Bihar             |                31 |                     7875 |                  7087 |
| 5           | Chhattisgarh      |               123 |                     2214 |                  1968 |
| 6           | Gujarat           |               151 |                     6202 |                  5566 |
| 7           | Haryana           |                95 |                     3262 |                  2634 |
| 8           | Himachal Pradesh  |                20 |                      676 |                   608 |
| 10          | Karnataka         |               163 |                     8394 |                  6660 |
| 11          | Kerala            |                70 |                    16076 |                 14345 |
| 12          | Madhya Pradesh    |               351 |                    12600 |                 12474 |
| 13          | Maharashtra       |               309 |                     7959 |                  7163 |
| 14          | Nagaland          |                10 |                      147 |                   140 |
| 15          | Odisha            |               103 |                     2813 |                  2546 |
| 16          | Punjab            |                60 |                      823 |                   719 |
| 17          | Rajasthan         |               258 |                     5398 |                  4858 |
| 18          | Tamil Nadu        |               201 |                    33500 |                 31000 |
| 19          | Telangana         |               207 |                    22287 |                 17830 |
| 20          | Uttarakhand       |               102 |                     1850 |                  1655 |
| 21          | Uttar Pradesh     |               244 |                     4610 |                  4149 |
| 22          | West Bengal       |               200 |                     4598 |                  4086 |
| Grand Total | Grand Total       |              3055 |                   176082 |                156800 |

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