PM Modi to launch financing facility of Rs 1 lakh cr under Agri Infra Fund tomorrow; check details

The funds will help to create farming assets such as cold storage, collection centres, processing units, etc.

In an effort to boost the creation of post-harvest management infrastructure and community farming assets, Prime Minister Narendra Modi will launch the financing facility of Rs 1 lakh crore under the Agriculture Infrastructure Fund via video-conferencing tomorrow. The funds will help to create farming assets such as cold storage, collection centres, processing units, etc, said a statement by the Prime Minister’s Office. These assets will enable farmers to get greater value for their produce, as they will be able to store and sell at higher prices, reduce wastage, and increase processing and value addition.

While the fund of Rs 1 lakh crore will be sanctioned under the financing facility in partnership with multiple lending institutions, 11 of the 12 PSU banks have already signed MOUs for the same cause, the government said. 3 per cent interest subvention and credit guarantee of up to Rs 2 crore will also be provided to the beneficiaries to increase the viability of these projects.

With the government’s scheme announced in line with PM Modi’s Atma Nirbhar Bharat mission, farmers, PACS, Marketing Cooperative Societies, FPOs, SHGs, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, startups, and Central/State agency or Local Body sponsored Public-Private Partnership Projects, are expected to benefit.

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The Prime Minister is also set to release the sixth instalment of funds of Rs 17,000 crore to 8.5 crore farmers under the PM-KISAN scheme tomorrow. The Pradhan Mantri Kisan Samman Nidhi Yojna (PM-KISAN) scheme, launched on 1 December 2018, has provided a direct cash benefit of over Rs 75,000 Crore to more than 9.9 crore farmers so far. The government said that the funds have enabled farmers to fulfil their agricultural requirements and support their families.

The PMO’s statement further said that the rollout and implementation of the PM-KISAN scheme have happened at an unparalleled pace, with funds being directly transferred into the Aadhaar authenticated beneficiaries’ bank account to prevent leakage and increase convenience for farmers. During the lockdown period, the scheme led to a release of nearly Rs 22,000 crore to aid the farmers.