PM to launch Rs1 lakh-cr Agri Infra Fund facility; release PM-Kisan installment
10 August 2020
Prime Minister Narendra Modi will launch the Rs1 lakh crore financing facility under the Agriculture Infrastructure Fund on Sunday at 11 AM via video conferencing. The prime minister will also release the sixth installment of funds of Rs17,000 crore to 85 million farmers under the PM-Kisan scheme.
The union cabinet has approved the Central Sector Scheme of financing facility under `Agriculture Infrastructure Fund’ of Rs1 lakh crore. The fund will catalyze the creation of post-harvest management infrastructure and community farming assets such as cold storage, collection centres, processing units, etc. These assets will enable farmers to get better value for their produce, as they will be able to store and sell at higher prices, reduce wastage, and increase processing and value addition.
A total of Rs1 lakh crore will be sanctioned under the financing facility in partnership with multiple lending institutions; 11 of the 12 public sector banks have already signed MoUs with the government. Under the facility, 3 per cent interest subvention and credit guarantee of up to Rs2 crore will be provided to the beneficiaries to increase the viability of these projects.
The beneficiaries of the scheme will include farmers, PACS, marketing cooperative societies, FPOs, SHGs, joint liability groups (JLG), multipurpose cooperative societies, agri-entrepreneurs, startups, and central/state agency or local body sponsored public-private partnership projects.
The Pradhan Mantri Kisan Samman Nidhi Yojna (PM-Kisan) scheme, launched on 1 December 2018, has provided direct cash benefit of over Rs75,000 crore to more than 99 million farmers. This has enabled them to fulfil their agricultural requirements and support their families. The rollout and implementation of the PM-Kisan scheme has happened at an unparalleled pace, with funds being directly transferred into the Aadhaar authenticated beneficiaries’ bank account to prevent leakage and increase convenience for farmers.
The scheme has also been instrumental in supporting farmers during the Covid-19 pandemic, through the release of nearly Rs22,000 crore to aid farmers during the lockdown period.