Union Cabinet Approves Expansion of Agriculture Infrastructure Fund Scheme

ENA Sectors 2024-08-29 16:49:06 New Delhi, Aug 29 (KNN) In a strategic move to bolster agricultural infrastructure and support the farming community, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved a progressive expansion of the Central Sector Scheme of financing under the Agriculture Infrastructure Fund (AIF). This decision is aimed at making the scheme more attractive, impactful, and inclusive, aligning with the Government's vision to enhance the agricultural sector's resilience and sustainability. The newly approved measures seek to broaden the scope of eligible projects under the AIF scheme and introduce additional support mechanisms. These initiatives aim to foster a robust agricultural infrastructure ecosystem, driving growth and improving productivity in the sector. A key element of the expansion is the inclusion of all eligible beneficiaries under the scheme for the creation of infrastructure covered under 'viable projects for building community farming assets.' This move is expected to facilitate the development of projects that enhance community farming capabilities, leading to improved productivity and sustainability. Additionally, the scheme will now cover integrated primary and secondary processing projects. This expansion will allow comprehensive agricultural processing, although standalone secondary processing projects will continue to be ineligible and covered under the Ministry of Food Processing Industries (MoFPI) schemes. To promote sustainable agricultural practices, the scheme will also align with Component-A of the PM-KUSUM initiative, which focuses on sustainable clean energy solutions for farmers, groups of farmers, Farmer Producer Organisations (FPOs), Cooperatives, and Panchayats. This convergence aims to enhance the adoption of clean energy alongside agricultural infrastructure development. Moreover, the scheme's credit guarantee coverage for FPOs will be expanded to include the NABSanrakshan Trustee Company Pvt. Ltd., alongside the existing CGTMSE coverage. This additional layer of financial security is designed to enhance the creditworthiness of FPOs, encouraging more investments in agricultural infrastructure projects. Since its inception in 2020, the AIF has played a pivotal role in creating 6,623 warehouses, 688 cold stores, and 21 silos, resulting in an additional storage capacity of about 500 LMT in the country. The scheme has led to significant investments totaling Rs. 78,596 Crore, with private entities contributing Rs. 78,433 Crore. Furthermore, it has generated over 8.19 lakh rural employment opportunities. The expansion of the AIF scheme is set to drive further growth, improve farm productivity, and enhance incomes, reinforcing the Governments commitment to the holistic development of agricultural infrastructure in India. (KNN Bureau) 39104 https://knnindia.co.in/news/newsdetails/sectors/union-cabinet-approves-expansion-of-agriculture-infrastructure-fund-scheme 2024-08-29 16:49:06 knnindia.co.in Union Cabinet Approves Expansion of Agriculture Infrastructure Fund Scheme