The government on Wednesday expanded the scope of the Rs 1 lakh crore Agri Infrastructure Fund (AIF) scheme to make it more attractive. This step has been taken with the aim of strengthening agricultural infrastructure facilities in the country. An official statement said that the Union Cabinet chaired by Prime Minister Narendra Modi has approved the progressive expansion of the Central Sector Scheme of Funding Facility under AIF to make it more attractive, effective and inclusive.
People will get employment
According to the statement, as an important step to increase and strengthen the agri infrastructure in the country and support the farming community, the government has announced several measures to expand the scope of the AIF scheme. Modi said in a post on social media platform ‘X’, “The Cabinet has taken a very important decision to build 12 industrial areas / cities under the National Industrial Corridor Development Program. Apart from promoting critical infrastructure, it will boost growth and generate employment for many people.”
Productivity will improve
The government has allowed all eligible beneficiaries of the scheme to build infrastructure falling under ‘Viable Projects for Creation of Community Agricultural Assets’. The move is expected to help in the development of viable projects that will enhance community agricultural capabilities, thereby improving productivity and environmental friendliness in the sector. The Center has decided to include integrated primary secondary processing projects in the list of eligible activities under AIF. However, single secondary projects will not be eligible and will be covered under schemes launched by the Ministry of Food Processing. The government has also allowed the integration of Component-A of PM-KUSUM with AIF for farmers, groups of farmers, farmer producer organizations, cooperatives, panchayats.
Clean energy solutions will get a boost
The synergy of these initiatives aims to promote sustainable clean energy solutions along with the development of agricultural infrastructure. Apart from CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises), the government has also proposed to expand the AIF credit guarantee coverage of FPOs through NAB Conservation Trustee Company Private Limited. The statement said that this expansion of credit guarantee options aims to enhance the financial security and credit eligibility of FPOs, which will promote more investment in agricultural infrastructure projects.
How much benefit was there
Since its launch by the Prime Minister in the year 2020, the AIF scheme has been instrumental in the construction of 6,623 warehouses, 688 cold storage houses and 21 silo projects, providing additional storage capacity of about five crore lakh tonnes in the country. This includes 4.65 crore tonnes of dry storage and 35 lakh tonnes of cold storage capacity. This additional storage capacity can save 18.6 lakh tonnes of food grains and 3.44 lakh tonnes of horticultural produce annually. The statement said, “So far, Rs 47,575 crore has been sanctioned for 74,508 projects under AIF. These sanctioned projects have raised investment of Rs 78,596 crore in the agriculture sector, out of which Rs 78,433 crore has been raised from private entities.” Apart from this, infrastructure projects sanctioned under AIF have helped in generating more than 8.19 lakh rural employment opportunities in the agriculture sector.
