The Agriculture Infrastructure Fund (AIF) is a significant initiative by the Indian government aimed at revolutionizing the agricultural sector by providing much-needed financial support for infrastructure development. In this article, we will learn about the Agriculture Infrastructure Fund (AIF), its features, and how to apply for the scheme. So, read the article till the end.
AIF fund is launched in July 2020, is designed to facilitate the creation of post-harvest management infrastructure and community farming assets through a robust financial mechanism. This blog delves into the details of the AIF, its objectives, eligibility criteria, benefits, and the various components of this comprehensive scheme.
What is the Agriculture Infrastructure Fund (AIF)?
The Agri Infrastructure Fund, also known as the National Agriculture Infra Financing Facility, is a central sector scheme introduced to support investments in viable agricultural projects. It focuses on enhancing post-harvest management and building community farming assets across India. The full form of AIF is the Agriculture Infrastructure Fund, which reflects its core objective of improving agricultural infrastructure.
Key Features of the AIF Scheme
- Scheme Duration: The AIF scheme will be operational from FY2020 to FY2032, offering a long-term framework for funding agricultural infrastructure projects over a 12-year period.
- Beneficiaries: The agriculture infrastructure fund is designed to cater to a wide range of stakeholders, including agri-entrepreneurs, farmers, farmer producer organizations (FPOs), cooperatives, state agencies, and public-private partnership projects.
- Eligible Projects: The agriculture infrastructure fund supports various projects, such as organic input production, bio-stimulant production units, seed processing, smart agriculture infrastructure, logistics facilities, cold storage, and more. The scheme also covers community farming assets like hydroponic farming and vertical farming.
How to Access the AIF: A Step by Step Guide
AIF Registration and Login:
To avail the benefits of the agriculture infrastructure fund, beneficiaries must first register on the official AIF portal. The registration process is straightforward and can be completed on the AgriInfra Portal. After successful registration, beneficiaries can log in using their credentials to access various services and apply for the fund.
Application Process:
Once logged in, applicants need to download the Detailed Project Report (DPR) template from the portal. Fill in the project details in the provided format and submit the application online. The application will be reviewed by the Ministry of Agriculture & Farmers Welfare, and eligible projects will be transferred to the selected bank for credit appraisal.
Interest Subvention Scheme:
Under the AIF, loans up to ₹2 crore are eligible for a 3% annual interest subvention for a maximum period of seven years. This subvention scheme significantly reduces the financial burden on the beneficiaries.
Credit Guarantee:
The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provides coverage for loans up to ₹2 crore. The government covers the fee for this coverage, ensuring that lending institutions can offer loans with reduced risk.
Benefits of the Agriculture Infrastructure Fund
- Enhanced Marketing Infrastructure: The agriculture infrastructure fund aims to improve marketing infrastructure, allowing farmers to reach a broader consumer base and increase their income. This includes the development of warehousing, cold storage, and logistics facilities.
- Reduction in Post-Harvest Losses: By investing in logistics and cold storage, farmers can minimize post-harvest losses and reduce the number of intermediaries, thereby gaining more control over market access and pricing.
- Community Farming Assets: The scheme supports the development of community farming assets, such as hydroponic and vertical farming systems, which can enhance productivity and optimize resource use.
- Support for Agricultural Start-ups: Government schemes for agricultural startups are integrated into the AIF, providing financial support to innovative projects and enhancing the overall growth of the agritech sector.
- Improved Financial Access: The AIF facilitates easier access to agri finance by offering low-interest loans and subvention plans. This makes it easier for farmers and agribusinesses to secure funding for infrastructure projects.
Eligibility Criteria
Beneficiaries:
The agriculture infrastructure fund caters to a wide range of beneficiaries, including individual farmers, FPOs, cooperatives, and various state and central agencies. Each beneficiary must meet specific criteria outlined by the scheme to qualify for funding.
Project Types:
Projects eligible for funding include those related to post-harvest management, community farming assets, and advanced agricultural practices.
Documents Required for Application
- Loan Application Form: The completed bank’s loan application form or customer request letter for AIF loan.
- Identity and Address Proof: Voter ID card, PAN card, Aadhaar card, or driving license for identity verification. Address proof such as electricity bills, property tax receipts, or lease agreements.
- Proof of Registration: Articles of Association for companies, certificate of registration for partnerships, and Udyog Aadhar for MSMEs.
- Financial Documents: Income tax returns, audited balance sheets, GST certificates, and bank statements.
- Project Details: Detailed project report, local authority permissions, and layout plans.
Conclusion
The Agriculture Infrastructure Fund (AIF) provides vital support for developing post-harvest management infrastructure and community farming assets across India. The scheme aims to enhance agricultural productivity by offering medium to long-term debt financing with interest subvention. It benefits a wide range of stakeholders including farmers, cooperatives, and agribusinesses through a structured approach to investment in agricultural infrastructure. By promoting innovative and sustainable farming practices, the AIF is expected to significantly reduce post-harvest losses and improve overall farm income. The fund’s focus on various agricultural projects ensures comprehensive development of farming infrastructure, catering to modern agricultural needs. The AIF scheme is a step towards strengthening India’s agricultural sector by facilitating easy access to financial support for infrastructure improvements.
FAQs
The Agriculture Infrastructure Fund is a government initiative providing financial support to develop post-harvest management infrastructure and community farming assets in India
The limit of the Agriculture Infrastructure Fund is up to ₹2 crore per project.
The AIF provides a 3% annual interest subsidy on loans up to ₹2 crore for a maximum of seven years.
The AIF provides financial support for developing agricultural infrastructure, reducing post-harvest losses, and improving market access and productivity for farmers.