Disbursals under the Rs 1 lakh crore AIF scheme are planned with Rs 10,000 crore target in the first year and Rs 30,000 crore each in the next three financial years
The central government’s Rs 1 lakh crore Agri Infrastructure Fund (AIF) is reportedly due for a review by the Department of Expenditure after Rs 20,000 crore disbursals are completed.
The 10-year scheme will be evaluated for mid-course correction if required, an agriculture department official told The Economic Times. The scheme will be “monitored regularly through an online platform.”
Moneycontrol could not independently verify the report.
Disbursals under the AIF scheme are planned with Rs 10,000 crore target in the first year and Rs 30,000 crore each in the next three financial years. An integrated monitoring system will be developed at district, state and national levels to monitor project implementation, the report said.
Assets under the scheme will be geotagged for effective real-time monitoring and the Centre will use the online platform to collaborate with lending institutions to provide loan sanctioning facility and provide information, the official added.
Benefits of the new system would be provision of scheme details such as credit guarantee and interest subvention, faster approval process, transparency of interest rates by various banks, reduced documentation and integration with other scheme benefits, the report noted.
As per the official, investment in agriculture has remained stagnant below 2 percent over the past five years. Further India’s limited agri infrastructure creates hindrances; for example 15-20 percent yield is wasted while connecting garments to market, while this is 5-15 percent in other countries.