PM Narendra Modi launches 1 lakh crore Agricultural Infrastructure Fund.
                     PM NARENDRA MODI LAUNCHES    
1 LAKH CRORE AGRICULTURE 
INFRASTRUCTURE FUND
INTRODUCTION
• Prime Minister Narendra Modi launched a 
financing facility of Rs1 lakh crore under the 
Agriculture Infrastructure Fund.
• This will be provided for agri-entrepreneurs, 
start-ups, agri-tech players and farmer groups for 
post-harvest management and nurturing farm 
assets.
Source: Business Line
AGRICULTURE INFRASTRUCTURE FUND
• The Prime Minister launched the new 
Agriculture Infrastructure Fund through video 
conference.
• Agriculture Minister Narendra Singh Tomar and 
senior ministry officials were also present on the 
occasion.
Source: The Financial Express
Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) 
Scheme
• The sixth installment of Rs 17,100 crore to more 
than 8.55 crore farmer beneficiaries was 
released under the Pradhan Mantri Kisan 
Samman Nidhi (PM-KISAN) scheme.
Source: Jagran Josh
ANNOUNCEMENT OF FUND
• In the month of July 2020, the Union Cabinet 
had approved this fund as part of the over Rs 20 
lakh crore stimulus package announced in 
response to the COVID-19 crisis.
• Where as PM-KISAN is an ongoing scheme being 
implemented since 2018.
Source: Twitter
DURATION OF AGRI-INFRA FUND 
• The new agri-infra fund, the duration of which will 
be 10 years till 2029.
• The aim is to provide medium-to-long term debt 
financing facility for investment in viable projects:
– Post-harvest management infrastructure 
– Community farming assets through interest 
subvention
– Financial support
Source: Dailyhunt
FINANCIAL SUPPORT
• About Rs 1 lakh crore will be sanctioned under the 
financing facility in partnership with multiple 
lending institutions as loans to
–  primary agri-credit societies
– farmer groups
– farmer producer organisations (FPOs)
– agri-entrepreneurs
– Start-ups
– agri-tech players
Source: India.com
MOU WITH BANKS
• Already, 11 of the 12 public sector banks have signed memorandum of agreement with the 
Agriculture Ministry.
• Moratorium for repayment under this financing facility may vary, subject to a minimum of six 
months and maximum of two years.
Source: Business Line
LOAN SANCTION
• Under the fund, about 3 per cent interest 
subvention and credit guarantee of up to Rs 2 
crore will be provided to the beneficiaries to 
increase the viability of the projects.
• Loans will be disbursed in four years starting 
with sanction of Rs 10,000 crore in the current 
year and Rs 30,000 crore each in the next three 
financial years.
Source: Indus dictum
CREDIT FACILITY
• Credit guarantee coverage will be available for 
eligible borrowers from this financing facility.
• Under the Credit Guarantee Fund Trust for Micro 
and Small Enterprises (CGTMSE) scheme for a 
loan of up to Rs 2 crore. 
• The fee for this coverage will be paid by the 
government.
Source: Krishi Jagran
PROVISION OF FUNDS
• The funds will be provided for setting up of 
– cold stores and chains
– Warehousing
– Silos
– Assaying
– grading 
– packaging units
– e-marketing points linked to e-trading 
platforms 
– ripening chambers
Source: Times of India