Context: The Union Cabinet chaired by the Prime Minister has given its approval to a new pan India Central Sector Scheme-Agriculture Infrastructure Fund. 

About the scheme:

  • Objective: 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.
  • Nodal ministry: Ministry of Agriculture and Farmers Welfare, Government of India.
  • Rs. One Lakh Crore will be provided by banks and financial institutions as loans to 
    • Primary Agricultural Credit Societies (PACS), 
    • Marketing Cooperative Societies, 
    • Farmer Producers Organizations (FPOs), 
    • Self Help Group (SHG), etc.

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 next three financial years.

  • 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. :
  • Moratorium for repayment under this financing facility may vary subject to minimum of 6 months and maximum of 2 years.
  • Monitored by: Agri Infra fund will be managed and monitored through an online Management Information System (MIS) platform. 
    • The National, State and District level Monitoring Committees will be set up to ensure real-time monitoring and effective feed-back.
  • The duration of the Scheme shall be from FY2020 to FY2029 (10 years).


  • It will enable all the qualified entities to apply for loan under the fund. 
  • The online platform will also provide benefits such as 
    • transparency of interest rates offered by multiple banks, 
    • scheme details including interest subvention and credit guarantee offered, 
    • minimum documentation, 
    • faster approval process as also integration with other scheme benefits.
  • The Project by way of facilitating formal credit to farm and farm processing-based activities is expected to create numerous job opportunities in rural areas.


Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

  • The scheme was launched to make available collateral-free credit to the micro and small enterprise sector. 
  • Both the existing and the new enterprises are eligible to be covered under the scheme. 
  • Implemented by: The Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the scheme. 

Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1637223

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