The Ministry of Agriculture and Farmers Welfare, under the guidance of Manoj Ahuja, the Agriculture Secretary, has unveiled a new initiative called BHARAT (Banks Heralding Accelerated Rural & Agriculture Transformation) as part of the Agri Infra Fund. With a target of raising 7200 crore, this month-long campaign will run from July 15th to August 15th, 2023. The launch event, held via video conferencing, saw active participation from over 100 banking officials, including MDs/Chairman, EDs, and representatives from Regional Rural Banks, Small Finance Banks, NBFCs, and select Co-operative Banks.
Progress of Agri-Infra Fund Scheme:
During the launch event, Samuel Praveen Kumar, the Joint Secretary of Agriculture Infrastructure Fund (AIF), shed light on the remarkable progress achieved through the Agri-Infra Fund scheme. This scheme has facilitated the completion of more than 31,850 agricultural infrastructure projects across the country, amounting to a loan disbursement of 24,750 crore. With a total outlay of Rs. 42,000, the scheme has significantly contributed to enhancing the nation’s agricultural infrastructure.
Key Suggestions and Recognitions:
Participating bank executives shared valuable suggestions to further strengthen the Agri-Infra Fund scheme. Manoj Ahuja expressed his appreciation for the top-performing banks in various categories, acknowledging their commendable efforts in driving the scheme’s success. He urged all banks to strive towards achieving the set targets, recognizing the vast potential for agricultural infrastructure projects in the country. The Ministry also emphasized the importance of conducting ground-level assessments to evaluate the impact of projects initiated under the scheme.
About the Agriculture Infrastructure Fund:
Approved by the Union Cabinet in 2020, the Agriculture Infrastructure Fund is designed to provide medium to long-term debt financing facilities for viable projects related to post-harvest management infrastructure and community farm assets. It offers interest subvention and financial assistance to eligible beneficiaries. The scheme has a duration of ten years, spanning from FY2020 to FY2032.
Benefits of the Agriculture Infrastructure Fund:
- Interest Subvention: The scheme offers an interest subvention of 3% on loans up to Rs. 2 crore for a maximum period of seven years, making agricultural financing more accessible and affordable.
- Credit Guarantee Coverage: Eligible borrowers can avail credit guarantee coverage through the Credit Guarantee Fund Trust for Micro and Small Enterprises Scheme (CGTMSE) for loans up to Rs. 2 crore, with the government covering the associated fees.
- FPO Support: Farmers Producer Organizations (FPOs) can benefit from credit guarantee coverage under the FPO Promotion Scheme of the Department of Agriculture, Cooperation, and Farmers Welfare (DACFW).
- Repayment Moratorium: The repayment moratorium period for this financial facility is flexible, ranging from a minimum of six months to a maximum of two years, providing relief to borrowers.
Conclusion:
The launch of the BHARAT campaign by the Ministry of Agriculture and Farmers Welfare signifies a significant step towards bolstering the Agri Infra Fund. By setting ambitious fundraising goals and leveraging the benefits of the Agriculture Infrastructure Fund, this campaign aims to accelerate rural and agricultural transformation in India. It seeks to improve post-harvest management infrastructure, develop community farm assets, and propel overall agricultural growth nationwide.
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