The Union Cabinet chaired by Prime Minister Narendra Modi gave its approval to some modifications in the Central Sector Scheme of Financing Facility under ‘Agriculture Infrastructure Fund’.
Media reports say the newly appointed Cooperation Minister Amit Shah has welcomed the move and thanked the Prime Minister for his visionary move. This will help farmers, co-operatives and FPOs, he is quoted saying.
Eligibility has now been extended to State Agencies/APMCs, National & State Federations of Cooperatives, Federations of Farmers Producers Organizations (FPOs) and Federations of Self-Help Groups (SHGs).
At present Interest subvention for a loan up to Rs 2 crore in one location is eligible under the scheme. In case, one eligible entity puts up projects in different locations then all such projects will now be eligible for interest subvention for loan upto Rs 2 crore.
However, for a private sector entity there will be a limit of a maximum of 25 such projects. This limitation of 25 projects will not be applicable to state agencies, national and state federations of cooperatives, federations of FPOs and federation of SHGs.
For APMCs, interest subvention for a loan up to Rs 2 crore will be provided for each project of different infrastructure types e.g. cold storage, sorting, grading and assaying units, silos, etc within the same market yard.
The modifications in the Scheme will help to achieve a multiplier effect in generating investments while ensuring that the benefits reach small and marginal farmers, claimed govt agencies.