Lok Sabha Question No. 101 (STARRED), answered on 2024-07-30
Subject: Agriculture Infrastructure Fund
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Parshottambhai Rupala, Shri Manish Jaiswal

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA STARRED QUESTION NO. 101

TO BE ANSWERED ON THE 30 TH  JULY, 2024

## AGRICULTURE INFRASTRUCTURE FUND

## * 101 . SHRI PARSHOTTAMBHAI RUPALA SHRI MANISH JAISWAL

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

- (a) the objectives and the details of the Central Sector Scheme for financing facility under the Agriculture Infrastructure Fund (AIF);
- (b) the status of the above scheme as on date and the details thereof; and
- (c) whether PM Kusum Yojna (component C) has been made part of AIF and, if so, the details thereof?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

क ृ िष एवं िकसान कʞाण मंũी (SHRI SHIVRAJ SINGH CHOUHAN)

- (a) to (c): A statement is laid on the Table of the House.

## STATEMENT  IN  RESPECT  OF  PARTS  (a)  TO  (c)  OF  THE  LOK  SABHA  STARRED QUESTION NO. 101 FOR 30 TH JULY, 2024 REGARDING AGRICULTURE INFRASTRUCTURE FUND.

(a) & (b): In order to enhance the income of farmers, it is not only essential to enhance production  and  productivity  of  farm  produce  but  also  minimize  the  post-harvest  losses  and ensure  better  realization  of  prices  for  farmers  through  creation  of  modern  post-harvest management  infrastructure.  With  an  objective  to  address  the  existing  gaps  in  post-harvest management infrastructure in the country, the flagship scheme of Agriculture Infrastructure Fund (AIF) was launched in 2020-21 to strengthen the infrastructure in the country through creation of farm gate storage and logistics infrastructure to enable farmers to store and preserve their farm produce properly and sell them in the market at better price with reduced post-harvest losses and lesser number of intermediaries. Improved post-harvest management infrastructure like warehouses, Cold stores, sorting and grading units, ripening chambers etc will allow farmers to  sell  directly  to  a  larger  base  of  consumers  and  hence,  increase  value  realization  for  the farmers. This will improve the overall income of farmers. Further, AIF scheme aims to benefit all stakeholders in the agricultural  ecosystem by contributing in the holistic development of the Agriculture  sector.  Under  AIF,  provision  for  Rs.  1  Lakh  crore  loan  has  been  made  through lending institutions with the a interest rate cap of  9% on loans. The scheme is operational from 2020-21 to 2032-33.

All loans under this financing facility have interest subvention of 3% per annum up to a loan limit of ₹2 crores. This interest subvention is available for a maximum period of 7 years. In case of  loans beyond ₹2 crores, interest subvention is limited up to ₹2 crores. Credit guarantee coverage  is  also  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 ₹2 crores. The fee for this coverage is borne by the Government.

Eligible beneficiaries under scheme include Farmers, Agri-entrepreneurs, Start-ups, Primary Agricultural  Credit  Societies  (PACS),  Marketing  Cooperative  Societies,  Farmer  Producers Organizations(FPOs),  Self  Help  Group  (SHG),  Joint  Liability  Groups  (JLG),  Multipurpose Cooperative  Societies,  Central/State  agency  or    Local  Body  sponsored  Public  Private Partnership  Projects,  State  Agencies,  Agricultural  Produce  Market  Committees  (APMC), National & State Federations of Cooperatives, Federations of FPOs and Federations of Self Help Groups (SHGs). The details of eligible projects under AIF are given below

## Eligible Projects under AIF: -

1. Following projects are eligible for all beneficiaries including private entities as well as groups such as FPOs, PACS, SHGs, JLGs, Cooperatives, National and State Level Federation of Cooperatives, FPOs federations, Federations of SHGs, National and State Level Agencies.

## A. Post-Harvest Management Projects

-  Supply chain services including e-marketing platform
-  Warehouse & Silos
-  Cold Stores and Cold Chain
-  Packaging Units
-  Assaying Units
-  Sorting and grading units
-  Logistic Facilities- Reefer Van & Insulated vehicles
-  Ripening Chambers
-  Farm residue/waste management infrastructures
-  Primary Processing activities

## B. Community Farming Assets

-  Organic inputs production - Vermicomposting etc.
-  Compressed Biogas (CBG) Plant
-  Bio stimulant production units
-  Infrastructure for smart and precision agriculture
-  Purchase of drones, putting up specialized sensors on field, Blockchain and AI in

## agriculture etc.

-  Remote sensing and Internet of Things (IOT) such as automatic weather station, Farm

advisory services through GIS applications.

-  Nursery
-  Tissue culture
-  Seed Processing
-  Custom Hiring Centre -farm machinery/ implements (minimum 4 in quantity)
-  Farm/Harvest Automation (combine harvester, sugarcane harvester, boom sprayers etc.)
-  Standalone solar pumping system (PM-KUSUM component B)
-  Solarization of grid connected agri-pump under (PM-KUSUM component C)
-  Integrated Spirulina production & processing units
-  Sericulture processing unit
-  Honey processing
-  Plant quarantine units
-  Projects identified for providing supply chain infrastructure for clusters of crops

## including export clusters.

-  Projects promoted by Central/State/Local Governments or their agencies under PPP

for building community farming assets or post-harvest management projects

2. Following  projects  are  eligible  for  only  groups  such  as  FPOs,  PACS,  SHGs,  JLGs, Cooperatives, National and State Level Federation of Co-operatives, FPOs  federations, Federations of SHGs, National and State Level Agencies as they qualify as community farming assets:-
2.  Hydroponic Farming
3.  Mushroom farming
4.  Vertical farming
5.  Aeroponic farming
6.  Poly house/ Greenhouse
7.  Logistics facilities (including non-refrigerated/insulated vehicles)
8.  Tractors

As on 26.07.2024, Rs. 46,080 Crores have been sanctioned for 72,222 projects under AIF. These sanctioned projects have mobilized an investment of Rs. 76,305 crores in agriculture sector.  Major  projects  sanctioned  under  AIF  include  17,899  custom  hiring  centers,  15,643 primary processing units, 13,469 warehouses, 3,021 sorting & grading units, 1,852 cold store projects, and 20,338 other kinds of post-harvest management projects and community farming assets. Year wise progress under AIF is given below

| Year     | Sanctioned No.   | Total project cost   | Sanctioned loan Amount in Cr   |
|----------|------------------|----------------------|--------------------------------|
| 2020-21  | 5,682            | 4,691                | 3,838                          |
| 2021-22  | 5,785            | 9,613                | 5,749                          |
| 2022-23  | 15,973           | 24,181               | 13,031                         |
| 2023-24  | 33,915           | 28,782               | 17,399                         |
| 2024-25* | 10,867           | 9,038                | 6,063                          |
| Total    | 72,222           | 76,305               | 46,080                         |

*till 26th July 2024

(c): Yes, The Solarization of projects under components B and C of Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) of Ministry of New and Renewable Energy ( MoNRE)  are  eligible  activities  under  the  AIF  Scheme.  PM-KUSUM  Scheme  is  for  reducing dependency on diesel usage in farm sector and enhancing the income of farmers. Under the Scheme, Central Government subsidy upto 30% for General states or 50% for hilly and North East states of the total cost is given for the installation of standalone solar pumps (Component-B) and also for the solarization of existing grid-connected agricultural pumps (Component-C). The details of PM Kusum project components and projects sanctioned under AIF scheme are given below .

## 1.  Details of the Scheme:

PM-KUSUM (Pradhan  Mantri  Kisan  Urja  Suraksha  evam  Utthaan  Mahabhiyan)  is  the  flagship scheme of MNRE launched by the Government in March, 2019 to provide financial support to the farmers  for  installation  of  standalone  solar  pumps  and  solarisation  of  existing  grid-connected agriculture pumps, and installing solar power plants on their barren/fallow agriculture land.  The scheme aims to add a solar capacity of 30.80 GW with total central financial outlay of ₹34,422 crore including  service  charges  of  2%  on  eligible  CFA  to  implementing  agencies.  The  timeline  for implementation of the Scheme has been extended till 31.03.2026.

## 2.  Scheme Objectives:

The objectives of the PM-KUSUM include reducing dependency on diesel usage in farm sector, providing  water  and  energy  security  to  farmers,  increasing  the  income  of  farmers,  curbing environmental pollution,  and  increasing  country's  solar  water  pump  manufacturing  capacity.  To achieve these objectives, following targets have been kept under the Scheme:

- i. Component-A: 10,000 MW of Decentralized Ground Mounted Grid Connected Solar Power Plants.
- ii. Component-B: Installation of 20 lakh standalone Solar Powered Agriculture Pumps which can be used by farmers in their fields.
- iii. Component-C: Solarisation of 15 Lakh Grid-connected Agriculture Pumps including through Feeder Level Solarisation for usage by farmers in their fields as well as to supply to the grid.

## 3.  Convergence of  PM KUSUM Components under AIF

- i. Projects under components B and C of Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan  (PM-KUSUM).  of  Ministry  of  New  and  Renewable  Energy  are  eligible activities under the AIF Scheme.
- ii. The proposal to cover Component-A of PM KUSUM under Agriculture Infrastructure Fund for Individual farmers/Group of farmers/Farmer Producer Organizations (FPO)/ Cooperatives/ Panchayats is under consideration .

## 4.  Details of PM Kusum Projects sanctioned under AIF

## (Loan Amount in Crore)

| State / Districts   |   Sanctioned Projects |   Sanctioned Amount |
|---------------------|-----------------------|---------------------|
| PUNJAB              |                   835 |               20.88 |
| Amritsar            |                     4 |                0.14 |
| Bathinda            |                   239 |                6.1  |
| Faridkot            |                    35 |                0.81 |
| Fatehgarh Sahib     |                     1 |                0.03 |
| Fazilka             |                   312 |                6.63 |
| Ferozepur           |                     8 |                0.22 |
| Gurdaspur           |                     7 |                0.16 |
| Hoshiarpur          |                    10 |                0.7  |
| Jalandhar           |                     3 |                0.11 |
| Kapurthala          |                     1 |                0.07 |
| Ludhiana            |                     8 |                0.22 |
| Malerkotla          |                     1 |                0.05 |
| Mansa               |                    22 |                0.8  |
| Moga                |                     2 |                0.05 |
| Pathankot           |                     3 |                0.05 |
| Patiala             |                     3 |                0.06 |

| Rupnagar          |   13 |   0.22 |
|-------------------|------|--------|
| Sri Muktsar Sahib |  161 |   4.41 |
| Tarn Taran        |    2 |   0.05 |
| WEST BENGAL       |   73 |   1.74 |
| Hooghly           |    2 |   0.13 |
| Malda             |    2 |   0.07 |
| Murshidabad       |   63 |   1.39 |
| Nadia             |    3 |   0.04 |
| North 24 Parganas |    1 |   0.03 |
| Purulia           |    2 |   0.08 |
| RAJASTHAN         |    2 |   0.06 |
| Ganganagar        |    1 |   0.03 |
| Hanumangarh       |    1 |   0.03 |
| UTTAR PRADESH     |    1 |   0.03 |
| Muzaffarnagar     |    1 |   0.03 |
| Grand Total       |  911 |  22.71 |

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