Lok Sabha Question No. 1512 (UNSTARRED), answered on 2023-12-12
Subject: Budget Disbursement under AIF
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shashi Tharoor

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

## LOK SABHA UNSTARRED QUESTION No. 1512

TO BE ANSWERED ON THE 12 th  DECEMBER, 2023

## Budget disbursement under AIF

1512.     SHRI SHASHI THAROOR:

Will the Minister of AGRICULTURE AND FARMERS WELFARE be pleased to state:

- (a) the details of the budget allocated to the Agriculture Infrastructure Fund (AIF) in 2022-23; (b) the reasons for only 9.68% of the Rs. 1 lakh crore Agriculture Infrastructure Fund (AIF) has been disbursed in the first three years since its launch in 2020; (c) whether the Government is taking any steps to expedite the disbursement of the remaining funds from the AIF by the financial year 2025-26; (d) if so, the details thereof and if not, the reasons therefor; (e) whether the Government is aware that the financing facility allocation to the States/UTs based on the value of the output of agriculture and allied activities is
- skewed towards some States; and
- (f)  if  so,  the  details  of  any  measures  taken  by  the  Government  to  rectify this anomaly?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE (SHRI ARJUN MUNDA)

(a):   Agriculture Infrastructure Fund is a medium - long term debt financing facility scheme  launched  in  2020.  for  investment  in  viable  projects  for  post-harvest management Infrastructure and community farming assets. Under the Scheme, one lakh crore rupees is to be provided to the eligible borrowers by banks and financial institutions with Interest Subvention @ 3% and Credit Guarantee facility. As on date Rs.32,472 Crores have been sanctioned for 43,318 projects under AIF, out of this total sanctioned amount Rs. 20102

crores have already been disbursed. These sanctioned projects have mobilized an investment of Rs 55,248 Crores in agriculture sector.

Accordingly, Rs 500 crores as B.E. and 150 crores as R.E. was allocated in 2022-23  for payment of interest subvention and CGTMSE fee to banks and financial institutions.

- (b): During the initial years of the launch of the Agriculture Infrastructure Fund (AIF) Scheme, the widespread Covid-19 infection all over the country badly hit  the  progress  of  the  Scheme.  Also,  the  severity  of  the  deadly  virus prevented reaching out to various stakeholders that hindered the spread of awareness about the  Scheme.  The  slow  pace  of  disbursement  out  of  the sanctioned loan is also due to the fact that setting up of infra projects takes time and disbursement takes place in a phased manner over a period of time. However, during FY 22-23, there has been a growth of around 251% from last year i.e. FY 21-22, and the progress of the FY 2023-24 is expected to bring  in  good  results  in  so  far  as  an  amount  of  Rs  9854  crore  has  been sanctioned with the disbursement of Rs 7272 crore as on 01.12.2023. In total, Rs.32,472 Crores have been sanctioned for 43,318 projects under AIF, out of  this  total  sanctioned  amount  Rs.  20102  crores  have  already  been disbursed.
- (c) & (d):   Yes Sir, the Department of Agriculture and Farmers Welfare holds periodic review sessions with the Central Project Monitoring Unit (CPMUs), the  State  Project  Monitoring  Units  (SPMUs),  Nodal  Officers  of  Banks  and State  Governments  both  in  physical  and  virtual  mode.  Department  of Agriculture and Farmers Welfare participates in AIF Conclaves of different States and organizes Bankers Conclave with the sole objective of spreading awareness on AIF. One-to-one meeting with Banks for increased sanction and prompt disbursement of sanctioned loans has been a routine exercise of this  department.  Campaigns  like  NOBOL  (Nationwide  One  Branch  One Loan),  BEST  (Bankers  Enabling  Sustainable  Transformation),  BHARAT (Banks Heralding Acceleration of Rural and Agricultural Transformation) etc. among Banks are being conducted periodically and as of now, 5 campaigns have been run, which contributed Rs. 16937 crores i.e. over 52% of the total sanctions under AIF. Last year the best performing Banks and States in these contests  were  honoured  by  the  Hon'ble  Agriculture  Minister  in  an  Award Ceremony. Also, this department participates in various workshops with the training institutions /Colleges of Banks and Central and State level Exhibitions to promote AIF Scheme. These activities help in sourcing more applications and  sanction  loans  by  banks  and  other  lending  institutions.  Apart  from coordinating with SLBC  meetings  of States and BLBCs,  DLCs,  this department conducts many other outreach programs with various stakeholders  like  Agripreneurs  and  Farmers,  PACS,  FPOs  &  CBNBOs, APMCs etc. with the said purpose in mind.

(e) & (f):  Allocation of financing facility has been worked out tentatively Statewise based on the ratio of total value of output of Agriculture and allied sectors of States/UTs.

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