Agriculture Infrastructure Fund (AIF) Scheme

1. Scheme Overview

Agricultural infrastructure plays a crucial role in the development and advancement of farming. Especially by developing post-harvest infrastructure, proper utilization of agricultural produce, value addition, and fair returns for farmers become possible.

With this objective, the Hon’ble Finance Minister announced a ₹1 lakh crore ‘Agriculture Infrastructure Fund’ on 15.05.2020 for farmers. Under this, credit facilities are provided to the following:

• Farmer Producer Organizations (FPO)
• Primary Agricultural Credit Societies (PACS)
• Agri-Entrepreneurs and Startups
• Since 2021, APMC (Agricultural Produce Market Committees) have also been included.

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2. Key Financial Benefits

• Interest Subvention: A 3% annual interest subvention on all loans. This subvention is available for loans up to ₹2 crore for a maximum of 7 years.
• Credit Guarantee: For loans up to ₹2 crore, the government itself provides guarantee under the CGTMSE scheme, and the guarantee fee is borne by the government.
• Scheme Duration: The scheme will remain operational from 2020-21 to 2032-33.

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3. Objectives

1. For Farmers: Facilitating direct sales, reducing post-harvest losses, and increasing income through modern packaging and storage.
2. For Government: Increasing private investment in the agriculture sector and reducing food waste to take Indian agriculture to the global stage.
3. For Entrepreneurs: Encouraging innovation using modern technologies like AI and IoT.
4. For Consumers: Getting quality agricultural produce at fair prices through direct sourcing from farmers.

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4. Main Features

• Total Fund: ₹1 lakh crore.
• Capital Limit: A single private entity can undertake a maximum of 25 projects across different locations (villages with different LGD codes).
• Moratorium: A moratorium of 6 months to 2 years is available for loan repayment.
• Participating Banks: Commercial banks, cooperative banks, RRBs, Small Finance Banks, NBFCs, etc.

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5. Who Can Apply?

• Farmers
• Farmer Producer Organizations (FPOs) and their Federations
• Primary Agricultural Credit Societies (PACS)
• Agri-Entrepreneurs and Startups
• Self-Help Groups (SHGs) and their Federations
• Agricultural Produce Market Committees (APMCs)
• Joint Liability Groups (JLGs)
• State agencies and Cooperative Federations

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6. Eligible Projects

A. Post-Harvest Management Projects:

• Warehouses and Silos
• Cold Storage and Cold Chain
• Packaging, Sorting & Grading Units
• Logistics Facilities: Refrigerated Vans and Insulated Vehicles
• Primary Processing Centers: Cleaning, Milling, Packaging, etc.

B. Viable Farming Assets:

• Organic Fertilizer Production: Vermicompost manufacturing, etc.
• Smart Farming: Drone purchase, Sensors, IoT, AI-based farming.
• Solar Energy: Solar pumps and solar energy projects under PM-KUSUM.
• Modern Farming: Hydroponics, Mushroom Farming, Vertical Farming, and Polyhouses.

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7. Illustrative List of Eligible Crop Processing

Crop	Eligible Primary Processing	Ineligible Activities
Cereals & Pulses	Cleaning, milling (flour, semolina, suji), packaging, storage.	Alcoholic beverages.
Fruits & Vegetables	Washing, waxing, freezing, ripening chamber, packaging.	Alcohol production.
Oilseeds	Oil extraction (Ghani), oil cake.	Biodiesel, lubricants.
Spices	Drying, grinding (powder), packaging.	–
Cash Crops	Cotton ginning, jaggery making, tea/coffee processing.	Textile weaving.

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8. Online Application Process

Visit the Agri Infrastructure Fund (AIF) Portal to apply.

1. Registration: Register as a ‘Beneficiary’ on the portal. Enter Aadhaar and mobile number for OTP verification.
2. Fill Profile: Enter detailed personal or organizational information.
3. Project Details: Specify the type of project, location, and estimated cost.
4. Select Bank: Choose the bank branch for the loan.
5. Upload DPR: Upload the Detailed Project Report (DPR) and documents.
6. Approval: After receiving ‘In-principle’ approval from PMU, the application goes to the bank.

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9. Documents Checklist

1. Identity and Address Proof

• Aadhaar Card, PAN Card.
• For organizations: Registration certificate and GST number.

2. Land-Related Documents

• 7/12 Extract and 8-A Extract.
• If land is leased: ‘Lease Agreement’ (10-15 years).

3. Financial and Technical Documents

• DPR (Detailed Project Report): Technical report of costs and profits.
• Quotations: Official quotes for machinery or construction.
• Bank Statement: Transactions for the last 6 months.
• ITR: Returns for the last 1 to 3 years (if applicable).

4. Other Permits

• NOC from local self-government body (Gram Panchayat/Municipality).
• Project Blueprint.

Important Note: Your DPR is the most crucial document for loan approval. It must clearly state how the project is financially viable and how many jobs it will create.