Agriculture Infrastructure Fund

The Union Cabinet in July 2020 has approved a new pan India Central Sector Scheme called Agriculture Infrastructure Fund (National Agriculture Infra Financing Facility). The scheme shall provide a medium - long term debt financing facility for investment in viable projects for post-harvest management Infrastructure and community farming assets through interest subvention and financial support.

Scheme duration

The duration of the Scheme shall be from FY2020 to FY2032 (10 years).

Intended beneficiaries

• 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

Eligible projects under AIF

A. Eligible projects for all beneficiaries

• Organic inputs production
• Bio stimulant production units
• Nursery
• Tissue culture 
• Seed Processing
• Custom Hiring Center
• Infrastructure for smart and precision agricultureFarm/Harvest Automation
• Purchase of drones, putting up specialized sensors on field, Blockchain and AI in agriculture etc.
• Remote sensing and Internet of Things (IOT) such as automatic weather station, Farm advisory services through GIS applications.
• Logistics facilities - Reefer Van& Insulated vehicles
• Assaying Units
• Supply chain services including e-marketing platforms
• Warehouse & Silos
• Cold Stores and Cold Chain
• Packaging Units
• Primary Processing activities

B. Eligible projects for building community farming assets

In addition to above activities farmer groups such as FPOs, PACS, SHGs, JLGs, Cooperatives, National and State Level Federation of Co-operatives, FPOs federations, Federations of SHGs, National and State Level Agencies etc. are eligible for following activities:

• Hydroponic Farming 
• Mushroom farming 
• Vertical farming 
• Aeroponic farming
• Poly house/ Greenhouse 
• Logistics facilities(including non-refrigerated/insulated vehicles)

Benefits

• All loans under this financing facility will have interest subvention of 3% per annum up to a limit of Rs. 2 crore. This subvention will be available for a maximum period of seven years.
• Further, 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 a loan up to Rs. 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 Department of Agriculture, Cooperation & Farmers Welfare (DACFW).
• Moratorium for repayment under this financing facility may vary subject to minimum of 6 months and maximum of 2 years.

How to apply

To apply online, click here.

Checklist of Documents

• Bank’s loan application form / Customer Request Letter for AIF Loan duly filled and signed
• Passport size photographs of the promoter/partners/director
• Identity proof – Voter ID card/PAN card/Aadhaar card/Driving license
• Address Proof :
  • Residence: Voter ID card/Passport/Aadhaar card/Driving license/Electricity Bill/Latest property Tax Bill
  • Business Office/Registered Office: Electricity Bill/Latest Property Tax Receipt/Certificate of Incorporation in case of Companies/Certificate of Registration in ca of partnership Firms
• Proof of Registration
  • In case of Company : Article of Association
  • In case of Partnership : Certificate of Registration of Firm with Registrar of Firm
  • In case of MSMEs : Certificate of Registration with District Industries Centre (DIC)/Udyog Aadhar Copy
• Income Tax Return for last three years, If available.
• Audited Balance Sheet of last 3 Years, If available.
• GST Certificate, if applicable.
• Land ownership records – title deed/lease deed. If applicable, then Permission to mortgage the Immovable Property from the Lessor in case the Property is Leasehold (for primary security)
• ROC Search Report of the Company
• KYC documents of the promoter/firm/company
• Copy of Bank Statement for last one year (If available)
• Repayment track record of existing loans (Loan Statement)
• Net Worth Statements of promoter
• Detailed Project Report
• As applicable - Local authority permissions, Layout plans/estimates, Building sanction

To view the complete scheme guidelines, click here. 

Source : National Agriculture Infra Financing Facility

Related resources

1. Model Project Reports of Agri enterprises