Agri Infrastructure Fund to See Major Expansion Under New Cabinet Approval

GG News Bureau
New Delhi, 28th August. The Union Cabinet on Wednesday approved a progressive expansion of the Central Sector Scheme under the ‘Agriculture Infrastructure Fund’ (AIF). This expansion aims to enhance the agricultural infrastructure in India, making the scheme more attractive, impactful, and inclusive.

Key Aspects of the Expansion:

Viable Farming Assets: The scheme will now support the creation of community farming assets under ‘viable projects’, enhancing productivity and sustainability in agriculture.

Integrated Processing Projects: Integrated primary and secondary processing projects will be eligible under AIF, though standalone secondary projects will fall under MoFPI schemes.

PM KUSUM Component-A: Convergence of Component-A of the PM-KUSUM scheme with AIF will be allowed for farmers, Farmer Producer Organizations (FPOs), cooperatives, and panchayats, promoting sustainable energy solutions alongside agricultural infrastructure development.

NABSanrakshan: The AIF credit guarantee coverage will be extended to FPOs through NABSanrakshan Trustee Company Pvt. Ltd., enhancing financial security and creditworthiness.

Since its launch in 2020, AIF has facilitated the creation of 6,623 warehouses, 688 cold storage facilities, and 21 silos, adding about 500 LMT of storage capacity. This includes 465 LMT of dry storage and 35 LMT of cold storage, enabling the saving of 18.6 LMT of food grains and 3.44 LMT of horticulture produce annually. To date, Rs. 47,575 crore has been sanctioned for 74,508 projects under AIF, mobilizing a total investment of Rs. 78,596 crore, with Rs. 78,433 crore coming from private entities. These projects have also generated over 8.19 lakh rural employment opportunities.

The expansion of AIF is expected to further drive growth, improve productivity, and enhance farm incomes, contributing to the overall sustainability of Indian agriculture. The measures reflect the government’s commitment to strengthening the agricultural sector through comprehensive infrastructure development.