New Delhi
The Union Cabinet, led by Prime Minister Narendra Modi, has approved the expansion of the Central Sector Scheme for financing under the Agriculture Infrastructure Fund (AIF). The expansion is intended to make the scheme more inclusive and impactful.
The AIF scheme will now include more eligible projects to improve agricultural infrastructure across the country. This includes allowing beneficiaries to create infrastructure under projects aimed at building community farming assets. The development of such projects is expected to enhance community farming capabilities and improve sector productivity.
Integrated primary and secondary processing projects have been added to the list of eligible activities under AIF. However, standalone secondary projects will remain ineligible and will be covered by the Ministry of Food Processing Industries (MoFPI) schemes.
The government will also allow the integration of Component-A of the PM-KUSUM scheme with AIF. This alignment is intended to promote sustainable clean energy solutions while developing agricultural infrastructure.
In addition to the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), credit guarantee coverage for Farmer Producer Organizations (FPOs) under AIF will be extended through the NABSanrakshan Trustee Company Pvt. Ltd.
Since the launch of AIF in 2020, the scheme has supported the creation of significant storage infrastructure and mobilized substantial investments. The expansion of AIF is expected to further drive growth, improve farm incomes, and contribute to the sustainability of agriculture in the country.
