AIF
The Agriculture Infrastructure Fund (AIF) is an initiative by the Government of India, designed to convert the agricultural sector by providing medium to long-term debt financing for investment in post-harvest management infrastructure and community farming assets. Launched in 2020 and operational until 2032-33.
Objectives
- ☉ Mobilize investments for building and upgrading agricultural infrastructure at farm-gate and aggregation points.
- ☉ Support projects that improve post-harvest management, reduce wastage, and increase value realization for farmers.
Financial Benefits
- ☉ Loan Amount: Up to ₹2 crore per project (maximum 25 projects for private entities).
- ☉ Interest Subvention: 3% per annum for loans up to ₹2 crore, for a maximum of 7 years (including moratorium).
- ☉ Credit Guarantee: Available for eligible borrowers.
- ☉ Borrower Contribution: Minimum 10% of total project cost.
Eligible Beneficiaries
- ☉ Farmers, Farmer Producer Organizations (FPOs), Primary Agricultural Credit Societies (PACS), agri-entrepreneurs, startups, SHGs, state agencies, and PPP projects.
- ☉ State agencies, cooperatives, federations of cooperatives, and federations of FPOs/SHGs can set up unlimited projects; private entities can set up to 25 projects in different locations.
Participating Financial Institutions
- ☉ All scheduled commercial banks, cooperative banks, Regional Rural Banks (RRBs), Small Finance Banks, NBFCs, and NCDC.
Eligible Components
- ☉ Post-harvest management: Warehouses, silos, cold chains, pack-houses, sorting/grading units, logistics, e-marketing platforms, assaying units, ripening chambers, and primary processing centers.
- ☉ Community farming assets: Organic input production, bio-stimulant units, infrastructure for smart/precision agriculture, and supply chain infrastructure for crop clusters.
Application Process
Online Application Steps:
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☉ Register: Visit the AIF Portal and generate a Beneficiary ID.
- ☉ Download DPR Template: Prepare a Detailed Project Report (DPR) as per the template.
- ☉ Submit Application: Fill in project details and upload the DPR on the portal.
- ☉ Review: The Ministry reviews and forwards eligible applications to the selected bank.
- ☉ Bank Appraisal: The Bank assesses project viability and sanctions the loan (decision within 60 days).
Key Documents Required:
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☉ Loan application form, DPR, KYC documents, proof of registration, land records, financial statements, and other relevant permissions.
Benefits to Stakeholders
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☉ Farmers: Improved access to markets, better price realization, and reduced post-harvest losses.
- ☉ Entrepreneurs: Incentives and reduced risk for investing in agri-infrastructure.
- ☉ Banks: Lower risk due to credit guarantee and interest subvention.
- ☉ Government: Reduced food wastage, increased rural employment, and a globally competitive agri-sector.
Avail Subsidy Summary Report On Your Project
FREQUENTLY ASKED QUESTIONS
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Farmers, FPOs, PACS, agri-entrepreneurs, SHGs, cooperatives, and state agencies.
Post-harvest infrastructure, like warehouses, cold chains, sorting units, and community farming assets.
