Lok Sabha Question No. 1998 (UNSTARRED), answered on 2025-03-11
Subject: Financing Facility under AIF
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Shrirang Appa Chandu Barne, Shri Kanwar Singh Tanwar

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION No. 1998

TO BE ANSWERED ON THE 11 th  March, 2025

## Financing Facility under AIF

1998.     SHRI SHRIRANG APPA CHANDU BARNE: SHRI KANWAR SINGH TANWAR:

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी be pleased to state:

- (a) whether the Government has accorded its approval for the progressive expansion of the financing facility under the Agriculture Infrastructure Fund(AIF) to the Central Sector Schemes in the country; (b) if so, the details of the financial assistance approved and disbursed under this scheme in the country, especially to the States of Maharashtra and Uttar Pradesh, till date; (c ) the details of farmers benefitted from the AIF in various States, especially in the Amroha Parliamentary Constituency of Uttar Pradesh, so far; (d)the extent to which it has enhanced and strengthened the agricultural infrastructure so far, along with the extent to which it has provided assistance to the farmer community; and (e)  the  details  of  other  measures  taken  to  expand  the  scope  of  AIF  in  various  States,

especially in the States of Maharashtra and Uttar Pradesh?

## ANSWER

## MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE

क ृ िष एवं िकसान कʞाण राǛ मंũी (SHRI RAMNATH THAKUR)

(a  &  b):  Launched  in  2020-21,  the  Agriculture  Infrastructure  Fund  (AIF)  aims  to bridge gaps in post-harvest management by strengthening farm gate storage and logistics infrastructure. By supporting warehouses, cold stores, sorting units, and ripening chambers, AIF enables farmers to reduce losses, minimize intermediaries, and secure better prices, ultimately enhancing their income. The scheme benefits all agricultural stakeholders, fostering holistic sectoral growth. With a ₹1 lakh crore loan provision, capped at 9% interest, AIF is operational until 2032-33 and  comes with 3% interest subvention and reimbursement of credit guarantee fees.

In a significant move to enhance and strengthen the agricultural infrastructure in the country and support the farming community, the Government approved on 28.08.2024 series of measures to expand the scope of AIF scheme. These  initiatives  aim  at  expanding  the  scope  of  eligible  projects  and  integrate additional supportive measures to make it more impactful and inclusive and to foster a  robust  agricultural  infrastructure  ecosystem.  The  key  areas  covered  under progressive expansion include:

Viable Farming Assets: Currently some technology driven projects like hydroponic farming, vertical farming,  aeroponic farming, poly-houses and green houses and mushroom cultivation were reserved for farmer collectives only. However, with this progressive expansion, individual farmers and entrepreneurs can have access to these  ventures.  This  move  is  expected  to  facilitate  the  development  of  viable projects  that  will  enhance  community  farming  capabilities,  thereby  improving productivity and sustainability in the sector.

Integrated  Processing  projects: Post  harvest  management  activities  were previously limited to primary processing. Now by expanding the scope integrated primary secondary processing projects are included in the list of eligible activities under AIF. This measure will help in making the projects viable and help farmers in achieving better price realisation. This will also help in holistic post harvest value chain  development  of  Agri  Horti  crops.  However  standalone  secondary  projects would not be eligible and would be covered under MoFPI schemes.

PM  KUSUM  Component-A: Component-A  of  PM-KUSUM  Scheme  which facilitates  the  establishment  of  solar  power  plants  up  to  2  MW  on  barren  fallow cultivable pastures or marshy lands has now been integrated with the AIF Scheme. with AIF for farmer/group of farmers/Farmer Producer Organizations/ Cooperatives/ Panchayats. This strategic convergence will empower both individual farmers and groups,  alleviating  their  role  from  being  Food  providers  to  Energy  providers (Annadaata to Urjadaata), while also promoting development of sustainable clean energy solutions alongside the development of agricultural infrastructure.

NABSanrakshan: In  addition  to  CGTMSE,  a  dedicated  credit  guarantees  cover window through the NABSanrakshan specially for FPOs under NABARD will now remain  open  for  AIF  Beneficiaries  where  the  guarantee  fee  will  be  eligible  for reimbursement. This expansion of credit guarantee options is intended to enhance the  financial  security  and  creditworthiness  of  FPOs,  thereby  encouraging  more investments in agricultural infrastructure projects.

The progressive expansion in the scope of AIF scheme is poised to further drive  the  growth,  reduce  input  costs,  improve  productivity,  enhance  efficiency thereby  increase  farm  incomes  and  contribute  to  the  overall  sustainability  of agriculture  in  the  country.  These  measures  also  underscore  the  Government's commitment to strengthening the agricultural sector through holistic development of farm infrastructure in the country.

The progressive expansion of the AIF Scheme has significantly broadened its impact by including more  eligible projects,  enhancing financial support mechanisms, and integrating sustainable energy solutions. These measures have made AIF more inclusive, fostering a stronger agricultural infrastructure ecosystem and  ensuring  greater  benefits  for  farmers  and  agri-entrepreneurs.  Notably,  this expansion has contributed to the sanction of 812 additional projects, amounting to ₹1,318  crore  by  the  end  of  February  2025,  further  accelerating  the  growth  of agricultural infrastructure. The  details of financial  assistance  approved  and disbursed under AIF in the States of Maharashtra and Uttar Pradesh are given in the Annexure-A.

(c) to (e):  As on 28 th  February, 2025, an amount of Rs. 59,943 Crore has been sanctioned  for  98744  projects  under  AIF,  out  of  this  total  sanctioned  amount ₹44,264  Crores  are  covered  under  scheme  benefits.  These  sanctioned  projects have  mobilized  an  investment  of  Rs  96,680  Crores  in  agriculture  sector.  Major projects sanctioned under AIF include 25671 custom hiring centres, 20216 primary processing units, 15125 warehouses, 3534 sorting & grading units, 2265 cold store projects, around 31933 other kinds of post-harvest management projects and viable farming  assets.  Out  of  98744  projects  43,239  projects  have  been  sanctioned  to farmers for amount 10,406 crore . From Amroha Parliamentary Constituency of Uttar Pradesh , 9 farmers have been benefitted under AIF Scheme to whom Rs. 2 crores have been sanctioned. State-wise details of farmers benefited under AIF is given in the Annexure-B.

To  expand  the  scope  of  the  Agri  Infra  Fund  (AIF)  across  various  states, including  Maharashtra  and  Uttar  Pradesh,  several  strategic  measures  are  being undertaken:

Bankers  Conclave  and  State  Conclave  are  organized  in  coordination  with  State Governments to spread awareness and facilitate collaboration for AIF implementation.

Workshops and skill-building programs are conducted for Bankers to strengthen their  understanding  of  AIF  processes  and  encourage  higher  participation  in financing agri-infrastructure projects.

The last three annual National Bankers Conclaves on AIF were successfully organized at NABARD Head Office, Mumbai, serving as a platform for deliberations with bankers on expanding AIF's impact.

In  Uttar  Pradesh,  continuous  engagement  with  State  agencies,  the  State Project Monitoring Unit (SPMU), and the State Level Bankers' Committee (SLBC) at Lucknow  ensures  effective  implementation  and resolution of operational challenges.

Regular meetings with SPMUs and Banks' AIF Nodal Officers are conducted to  monitor  progress,  address  bottlenecks,  and  accelerate  project  approvals  and disbursements under AIF.

## ANNEXURE-A

## State wise Sanctioned Number and Sanctioned Amount under AIF as on 28.02.2025

(Amount in Rs Crore)

| S.N         | State/ UT                                    | Sanctioned No.   | Sanctioned Amount   |
|-------------|----------------------------------------------|------------------|---------------------|
| 1           | Madhya Pradesh                               | 12,495           | 8,494               |
| 2           | Maharashtra                                  | 10,418           | 6,790               |
| 3           | Uttar Pradesh                                | 8,563            | 6,269               |
| 4           | Punjab                                       | 21,740           | 5,162               |
| 5           | Gujarat                                      | 3,615            | 3,991               |
| 6           | Karnataka                                    | 3,877            | 3,527               |
| 7           | Telangana                                    | 2,687            | 3,286               |
| 8           | Rajasthan                                    | 3,314            | 3,261               |
| 9           | Haryana                                      | 5,508            | 3,361               |
| 10          | Andhra Pradesh                               | 2,831            | 2,902               |
| 11          | Tamil Nadu                                   | 7,600            | 2,440               |
| 12          | West Bengal                                  | 4,946            | 2,235               |
| 13          | Chhattisgarh                                 | 1,816            | 1,751               |
| 14          | Odisha                                       | 2,639            | 1,564               |
| 15          | Bihar                                        | 1,485            | 1,240               |
| 16          | Kerala                                       | 2,929            | 1,141               |
| 17          | Assam                                        | 532              | 907                 |
| 18          | Uttarakhand                                  | 513              | 528                 |
| 19          | Jharkhand                                    | 399              | 441                 |
| 20          | Jammu And Kashmir                            | 177              | 345                 |
| 21          | Himachal Pradesh                             | 588              | 205                 |
| 22          | Delhi                                        | 11               | 14                  |
| 23          | Tripura                                      | 9                | 14                  |
| 24          | Chandigarh                                   | 5                | 11                  |
| 25          | Goa                                          | 27               | 40                  |
| 26          | Meghalaya                                    | 3                | 10                  |
| 27          | Arunachal Pradesh                            | 5                | 6                   |
| 28          | Nagaland                                     | 3                | 4                   |
| 29          | Puducherry                                   | 5                | 4                   |
| 30          | The Dadra And Nagar Haveli And Daman And Diu | 1                | 1                   |
| 31          | Manipur                                      | 3                | 1                   |
| Grand Total |                                              | 98,744           | 59,943              |

## ANNEXURE-B

## State wise AIF Projects Sanctioned to Farmers as on 28 February, 2025

(Amount in Rs. Crore)

| District          | No. of Projects   | Sanctioned Amt.   |
|-------------------|-------------------|-------------------|
| PUNJAB            | 15487             | 2079              |
| MADHYA PRADESH    | 4282              | 1593              |
| MAHARASHTRA       | 4969              | 1337              |
| KARNATAKA         | 1444              | 1050              |
| HARYANA           | 3468              | 766               |
| UTTAR PRADESH     | 3187              | 649               |
| WEST BENGAL       | 3402              | 620               |
| RAJASTHAN         | 1055              | 421               |
| GUJARAT           | 1255              | 402               |
| TAMIL NADU        | 827               | 347               |
| TELANGANA         | 425               | 224               |
| BIHAR             | 457               | 206               |
| ODISHA            | 713               | 199               |
| ANDHRA PRADESH    | 561               | 131               |
| CHHATTISGARH      | 557               | 129               |
| KERALA            | 280               | 78                |
| HIMACHAL PRADESH  | 418               | 67                |
| UTTARAKHAND       | 226               | 57                |
| JAMMU AND KASHMIR | 81                | 23                |
| JHARKHAND         | 108               | 13                |
| ASSAM             | 27                | 9                 |
| GOA               | 6                 | 3                 |
| PUDUCHERRY        | 2                 | 2                 |
| CHANDIGARH        | 1                 | 0                 |
| TRIPURA           | 1                 | 0                 |
| Grand Total       | 43,239            | 10,406            |

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