Lok Sabha Question No. 398 (UNSTARRED), answered on 2025-02-04
Subject: Agriculture Infrastructure Fund Scheme
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Smt. Geniben Nagaji Thakor

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA

## UNSTARRED QUESTION No. 398

TO BE ANSWERED ON THE 04 th  February, 2025

## Agricultural Infrastructure Fund Scheme

## 398.     SMT GENIBEN NAGAJI THAKOR:

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

- (a) the purpose and objective of Agriculture Infrastructure Fund Scheme;
- (b) the details of funds allocated under this scheme in Gujarat, district-wise; and
- (c) the criteria fixed for selection of the eligible borrower?

## ANSWER

## MINISTER OF STATE AGRICULTURE AND FARMERS WELFARE

## क ृ िष एवं िकसान कʞाण राǛमंũी (SHRI RAMNATH THAKUR)

(a) to (c) : 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  postharvest  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  projects  under  AIF  includes  post-harvest  management  projects  and viable  farming assets such as warehouses, silos, pack houses, assaying units, sorting & grading units, cold storage, cold chains, logistics facilities, primary processing centres, Integrated primary and secondary processing centres, ripening chambers, supply chain services  including  e-marketing  platforms,  organic  inputs  production,  Bio  stimulant production  units,  Infrastructure  for  smart  and  precision  agriculture,  Farm/Harvest Automation, custom hiring centre, Purchase of drones, Setting up of standalone solar pump and grid connected  Agri pumps under PM-KUSUM component A, B & C, putting up specialized sensors on field, block chain and AI in agriculture, remote sensing and Internet  of  Things  (IOT)  such  as  automatic  weather  station,  farm  advisory  services through GIS applications, integrated spirulina production and processing unit, sericulture processing  unit,  honey  Processing  unit,  plant  quarantine  unit,  hydroponic  farming ,mushroom farming , vertical farming, aeroponic farming, poly house/ greenhouse etc.

The Union Cabinet has approved an expansion of the Agriculture Infrastructure Fund (AIF). Key measures include allowing viable community farming assets  for all eligible beneficiaries, including secondary processing projects integrated with primary processing in eligible activities, and converging AIF with PM-KUSUM Component-A. Additionally,  NABSanrakshan  is  also  included  in  scheme  to  extend  credit  guarantee support to FPOs.

The targeted aggregate loan amount of ₹1 lakh crore under the AIF, set to be sanctioned  by  banks  by  2025-26,  has  been  provisionally  allocated  among  States  and Union Territories. This allocation  is  based  on  the  proportion  of  each  State/UT's  total agricultural and allied sector output, ensuring a balanced and need-based credit flow to support sectoral growth. The share of allocation for Gujarat stands at Rs 7282 crore.

As on 26.1.2025, Rs. 56334 Crores have been sanctioned for 92393 projects under AIF, out of this total sanctioned amount, ₹41996 crores are covered under scheme benefits. These sanctioned projects have mobilized an investment of Rs.91856 crores in agriculture sector. In the State of Gujarat, ₹3819 cr. has been sanctioned for 3400 projects under AIF. The total project cost for these sanctioned projects is ₹5904 crore. The details of funds sanctioned under this scheme in Gujarat, district-wise is given in Annexure.

To qualify as a borrower under the AIF Scheme, the applicant must belong to the prescribed  eligible  entities  namely  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).  However,  examination  of  the proposal/ DPR is being done by lending institutions with due intelligence to confirm the viability  of the projects before the sanctioning the loan. Additionally, the applicant is required  to  contribute  a  minimum  of  10%  of  the  project  cost  as  the  promoter's contribution.

## Gujrat District wise sanctioned projects under AIF.

## (Amount in Rs Crore)

|   SN | District      |   Sanctioned No. |   Sanctioned Amount |
|------|---------------|------------------|---------------------|
|    1 | Mahesana      |              177 |                 564 |
|    2 | Rajkot        |              382 |                 491 |
|    3 | Junagadh      |              454 |                 402 |
|    4 | Sabar Kantha  |              203 |                 342 |
|    5 | Banas Kantha  |              165 |                 298 |
|    6 | Arvalli       |              104 |                 224 |
|    7 | Kachchh       |              142 |                 219 |
|    8 | Ahmadabad     |              232 |                 181 |
|    9 | Bhavnagar     |               95 |                 131 |
|   10 | Gandhinagar   |               67 |                 125 |
|   11 | Anand         |              331 |                  97 |
|   12 | Morbi         |               67 |                  80 |
|   13 | Kheda         |              186 |                  80 |
|   14 | Surat         |              118 |                  79 |
|   15 | Patan         |               82 |                  63 |
|   16 | Jamnagar      |               90 |                  62 |
|   17 | Vadodara      |               72 |                  61 |
|   18 | Surendranagar |               57 |                  53 |
|   19 | Tapi          |               11 |                  49 |
|   20 | Amreli        |               51 |                  44 |
|   21 | Valsad        |               14 |                  40 |
|   22 | Gir Somnath   |               70 |                  35 |
|   23 | Bharuch       |               51 |                  22 |
|   24 | Botad         |               36 |                  20 |

| 25   | Porbandar       |   12 |   12 |
|------|-----------------|------|------|
| 26   | Navsari         |   17 |   11 |
| 27   | Dohad           |   15 |   11 |
| 28   | Panch Mahals    |   43 |   11 |
| 29   | Devbhumi Dwarka |   16 |    5 |
| 30   | Mahisagar       |   16 |    3 |
| 31   | Narmada         |   13 |    2 |
| 32   | Chhotaudepur    |    8 |    1 |
| 33   | Dang            |    3 |    1 |
|      | Grand Total     | 3400 | 3819 |

******