In a major boost to farmers, Prime Minister Narendra Modi on Sunday launched a new Central Sector Scheme of financing facility under the Agriculture Infrastructure Fund of Rs 1 Lakh Crore.
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According to the reports, only 30 days after Cabinet formally approved the scheme, an event was organised today and was attended by lakhs of farmers, FPOs, cooperatives, PACS, and citizens joining from across the country
In the virtual event conducted through video conference, the first sanction of over Rs 1000 Crore was made to over 2,280 farmer societies with the aim to support farmers, PACS, FPOs, Agri-entrepreneurs, etc. in building community farming assets and post-harvest agriculture infrastructure.
These assets will enable farmers to get greater value for their produce as they will be able to store and sell at higher prices, reduce wastage, and increase processing and value addition.
Agriculture Infrastructure Fund
The Agriculture Infrastructure Fund is 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 credit guarantee. The duration of the scheme shall be from FY2020 to FY2029 (10 years).
Under the scheme, Rs 1 Lakh Crore will be provided by banks and financial institutions as loans with interest subvention of 3 per cent per annum and credit guarantee coverage under CGTMSE scheme for loans up to Rs 2 Crore.
The beneficiaries will include farmers, PACS, Marketing Cooperative Societies, FPOs, SHGs, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Startups, and Central/State agency or Local Body sponsored Public-Private Partnership Projects.
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PM Releases 6th Installment Worth 17,000 Crore Under PM-KISAN Scheme
At the same event, the Prime Minister also released the 6th installment under the PM-KISAN scheme of Rs 17,000 Crore to nearly 8.5 Crore farmers. The cash benefit was transferred directly to their Aadhaar verified bank accounts with the press of a button. With this transfer, the scheme has provided over 90,000 Crore in the hands of more than 10 Crore farmers since its launch on 01 December 2018.
These steps are the latest in a series of reforms taken by the Government of India under the guidance of the Prime Minister. These measures will collectively herald a new dawn for the agriculture sector in India and show the government’s commitment to championing the cause of ensuring the welfare and sustainability of livelihoods for the farmers of India.
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