Prime Minister Narendra Modi will today launch a financing facility of one lakh crore rupees under the Agriculture Infrastructure Fund through video conferencing. The government in July approved the establishment of Agri-Infra Fund with a corpus of Rs 1 lakh crore to extend concessional loans for agricultural infrastructure projects. With this, the Prime Minister will release Rs 17,000 crore as the sixth installment to 8.5 lakh crore farmers under the PM Kisan Yojana in this video conference.
Know what is agricultural infrastructure fund
The agri-infra fund was a part of the Rs 20 lakh crore relief package released by the government to mitigate the effects of the corona virus crisis. The duration of Agri-Infra Fund is 10 years till 2029. Its mission is to facilitate medium-to-long-term debt financing for investment in viable projects for post-harvest management infrastructure and community farming through interest subvention and financial support. The move aims to increase private investment in the rural sector and generate more employment.
10,000 crore loan will be disbursed this year
One lakh crore rupees in Agriculture Infrastructure Fund will be made available by banks and financial institutions as loans to primary agricultural credit societies, farmer groups, farmer producer organizations, agri-entrepreneurs, start-ups and people associated with agri-tech. Loans will be disbursed in four years. 10,000 crore will be disbursed in the current financial year and Rs 30,000 crore each during the next three financial years.
