Prime Minister Narendra Modi on Sunday released the sixth-installment of Rs 17,100 crore to more than 8.55 crore farmer-beneficiaries. It was released under the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme.
Under the PM-KISAN scheme, the government is providing annually Rs 6,000 in three equal installments to 14 crore farmers. The amount is directly transferred into the bank accounts of the beneficiaries through direct benefit transfer (DBT) mode.
Under the scheme, Centre claims to have provided a DBT of over ₹ 90,000 crore to over 10 crore farmers.
PM launches new fund
The Prime Minister launched the new Agriculture Infrastructure Fund through video conference. Also, agriculture minister Narendra Singh Tomar and senior ministry officials were present on the occasion.
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Last month, the Union Cabinet had approved this fund as part of the over Rs 20 lakh crore stimulus package announced in response to the COVID-19 crisis. Notably, PM-KISAN is an ongoing scheme being implemented since 2018.
New fund to provide financing facility in agriculture sector
The new fund aims to provide a medium-to-long-term debt financing facility for investment in viable projects. As a result, it includes post-harvest management infrastructure and community farming assets through interest subvention and financial support.
The duration of the scheme will be 10 years till 2029.
Beneficiaries of the scheme
Under this, about Rs 1 lakh crore will be sanctioned under the financing facility in partnership with multiple lending institutions as loans to primary agri-credit societies, farmer groups, farmer producer organisations (FPOs), agri-entrepreneurs, startups and agri-tech players.
Banks already signed MoA
So far, 11 of the 12 public sector banks have signed a memorandum of agreement with the agriculture ministry.
Under the fund, about 3 per cent interest subvention and credit guarantee of up to Rs 2 crore will be provided to the beneficiaries to increase the viability of the projects.
Loans will be disbursed in four years starting with the sanction of Rs 10,000 crore in the current year and Rs 30,000 crore each in the next three financial years.
The moratorium for repayment under this financing facility may vary, subject to a minimum of six months and a maximum of two years.
Credit guarantee coverage for eligible borrowers
Further, credit guarantee coverage will be available for eligible borrowers from this financing facility under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan of up to Rs 2 crore. The fee for this coverage will be paid by the government.
In the case of FPOs, a credit guarantee may be availed from the facility created under the FPO promotion scheme.
Funds to be made available for supply chain infrastructure
Interestingly, the funds will be provided for setting up of cold stores and chains. Also, it will be used for warehousing, silos, assaying, grading and packaging units, e-marketing points linked to e-trading platforms and ripening chambers, besides PPP projects for crop aggregation sponsored by central/state/local bodies.
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