Agriculture Infrastructure fund- Keralam

• The role of infrastructure is crucial for agriculture development and for taking the production dynamics to the next level. It is only through the development of infrastructure, especially at the post harvest stage that the produce can be optimally utilized with opportunity for value addition and fair deal for the farmers. Development of such infrastructure shall also address the vagaries of nature, the regional disparities, development of human resource and realization of full potential of our limited land resource.

• In view of above, the Hon’ble Finance Minister announced on 15.05.2020, 1 lakh crore Agri Infrastructure Fund for farm-gate infrastructure for farmers. Financing facility of Rs. 1,00,000 crore will be provided for funding Agriculture Infrastructure Projects at farm-gate & aggregation points (Primary Agricultural Cooperative Societies, Farmers Producer Organizations, Agriculture entrepreneurs, Start-ups, etc.). Impetus for development of farm gate & aggregation point, affordable and financially viable Post Harvest Management infrastructure.

• Accordingly, DA&FW has formulated the Central Sector Scheme to mobilize a medium - long term debt financing facility for investment in viable projects relating to postharvest management Infrastructure and community farming assets through incentives and financial support.

• Subsequently, in the budget announcement made on 01.02.2021, it was decided to extend the benefit of the scheme to APMCs. Accordingly, modifications in the scheme were carried out with the approval of Cabinet to make it more inclusive.

• Credit guarantee coverage will be available for eligible borrowers from this financing facility under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for loans up to ₹ 2 crore. The fee for this coverage will be paid by the Government. In case of FPOs the credit guarantee may be availed from the facility created under FPO promotion scheme of DA&FW.

• All loans under this financing facility will have interest subvention of 3% per annum up to a limit of ₹ 2 crore. This subvention will be available for a maximum period of 7 years. In case of loans beyond ₹ 2 crore, then interest subvention will be limited up to ₹ 2 crore. The extent and percentage of funding to private entrepreneurs out of the total financing facility may be fixed by the National Monitoring Committee.

• The Scheme will be operational from 2020-21 to 2032-33. Loan disbursement under the scheme will complete in six years.

• Convergence with all schemes of central or state government.

• Online single window facility in collaboration with participating lending institutions.

• Project Management Unit to provide handholding support for projects including project preparation.

• Size of the financing facility – ₹ 1 lakh Crore.

• Credit Guarantee for loans up to ₹ 2 Crore.

• Interest subvention of 3% p.a., limited to ₹ 2 crore per project in one location, though loan amount can be higher.

• Cap on lending rate, so that benefit of interest subsidy reaches the beneficiary and services to farmers remain affordable.

• Multiple lending institutions including Commercial Banks, Cooperative Banks, RRBs, Small Finance Banks, NCDC, NBFCs etc.

• One eligible entity puts up projects in different locations then all such projects will be eligible under the scheme for loan upto ₹ 2 crore.

• For a private sector entity, such as farmer, agri entrepreneur, start-up there will be a limit of maximum of 25 such projects.

• Limitation of 25 projects will not be applicable to state agencies, national and state federations of cooperatives, federations of FPOs and federation of SHGs.

• Location mean physical boundary of a village or town having a distinct LGD (Local Government Directory) code.

• Each of such project should be in a location having a separate LGD (Local Government Directory) Code.

• APMCs will be eligible for multiple projects (of different infrastructure types) within their designated market area.

• Interest subvention will be available for a maximum period of 7 years.

• Moratorium for repayment under this financing facility may vary subject to minimum of 6 months and maximum of 2 years.

• Disbursement will complete in six years from 2020-21.

• Need based refinance support will be made available by NABARD to all eligible lending entities including cooperative banks and RRBs as per its policy.

• Agricultural Produce Market Committee

• Agri-Entrepreneur

• Central sponsored Public-Private Partnership Project

• Farmer

• Farmer Producers Organization

• Federation of Farmer Produce Organisations

• Joint Liability Groups

• Local Body sponsored Public-Private Partnership Project

• Marketing Cooperative Society

• Multipurpose Cooperative Society

• National Federations of Cooperatives

• Primary Agricultural Credit Society

• Self Help Group

• Federations of Self Help Groups

• Start-Up

• State Agencies

• State Federations of Cooperatives

• State sponsored Public-Private Partnership Project

After signing of Memorandum of Understanding (MoU) with National Bank for Agriculture & Rural Development (NABARD)/DA&FW, all following eligible lending institutions may participate to provide this financing facility.

• All scheduled Commercial Banks.

• Scheduled Cooperative Banks.

• Regional Rural Banks (RRBs).

• Small Finance Banks.

• Non-Banking Financial Companies (NBFCs).

• National Cooperative Development Corporation (NCDC).

• DCCBs with PACS affilation.

The National, State and District Level Monitoring Committees to ensure real-time monitoring and effective feed-back about the implementation of the proposed scheme.

The National Level Monitoring Committees

• National level Monitoring Committee (NLMC) will guide and steer the implementation of the project. It will approve the guidelines for implementation of the project.

• National level Implementation Committee (NLIC) will examine and recommend the guidelines for implementation of the project. It also will ensure and review the implementation of the scheme as per approved guidelines by the National level Monitoring Committee (NLMC).

The State Level Monitoring Committees

• State level Monitoring Committee (SLMC) will implement the NIMC guidelines at the state level and provide feedback to NIMC.

• It will also guide and steer the implementation of the scheme in the state.

• It will also examine and approve the selected list of beneficiaries/ projects for inclusion in the scheme in consultation with DLMC.

• It will set the targets as per OOMF format and review the progress regularly.

The District Level Monitoring Committees

• District level Monitoring Committee (DLMC) The DLMC will be the first line of implementation and monitoring system within the overall framework.

• It will identify the beneficiaries, to ensure viability of the project and prepare viable project reports to support the beneficiaries in collaboration with PMU.

• It will also examine the proposal and recommend to SLMC for consideration.

• DLMC will set targets in consultation with SLMC as per OOMF format and monitor the progress closely with the support of PMU.

• DLMC will maintain the Dashboard in collaboration with PMU.

• It will be responsible for the smooth implementation of the scheme and resolve any issues at the district level. In the process of sorting out implementation issues the Committee would be supported by the district administration wherever required.

Project Management Units

• Farmers Welfare Programme Implementation Society under DAFW will provide PMU

• Support to the scheme at the central level and state PMUs of PM KISAN at state level.

• Services of knowledge partners will be engaged to identify clusters including export.

• Clusters and gaps in supply chains to target projects and prepare viable project reports to.

• Support the beneficiaries.

• PMUs will provide handholding support for implementation of the scheme

• It will also monitor the progress closely with the support of DLMC.

• PMU will maintain the Dashboard in collaboration with DLMC.