Prime Minister Narendra Modi on August 9 launched a financing facility of Rs. 1 lakh crores under the Agriculture Infrastructure Fund for agri-startups, entrepreneurs, farmer groups, agri-tech players for the post-harvest management and nurturing farm assets.
Under the government launched PM Kisan Samman Nidhi Yojana, Prime Minister transferred Rs. 17,000 crores into the bank accounts of 8.5 crores farmers. It was also informed that the amount went straight to farmers without any middlemen and commission.
The new Agriculture Infrastructure Fund was launched via a video conference by PM Modi. Agriculture Minister Narendra Singh Tomar and other senior ministry officials were also present at the occasion.
Rs 17,000 crores of PM-Kisan Samman Nidhi have been deposited into bank accounts of 8.5 crore farmers with a single click. No middlemen or commission, it went straight to farmers. I am satisfied because the objective of the scheme is being fulfilled: Prime Minister Narendra Modi https://t.co/jFwTxAAi0S pic.twitter.com/s0depFZ24i
— ANI (@ANI) August 9, 2020
Key Highlights:
• On August 9, the central government released the sixth installment of Rs. 17,100 crores to more than 8.55 crores farmer-beneficiaries under the scheme.
• Under the scheme, around Rs. 1 lakh crores will be sanctioned under the financing facility in partnership with the multiple lending institutions as loans to farmer groups, primary agri-credit societies, agri-entrepreneurs, farmer producer organisations (FPOs), agri-tech players and startups.
• 11 of the 12 public sector banks have already signed the Memorandum of Agreement (MoU) with the Agriculture Ministry.
• Loans will be laid out in four years starting with the sanction of Rs. 10,000 crores in the current year and Rs. 30,000 crores each in the next financial years.
• The facility of repayment will vary, subject to a minimum of six months and a maximum of two years.
• In the case of farmer producer organisations, credit guarantee can be benefitted from the facility created under the FPO promotion scheme, which is of the Department of Agriculture, Cooperation, and Farmers Welfare.
What is Agriculture Infrastructure Fund? |
| In July 2020, Union cabinet had approved Agriculture Infrastructure Fund as part of the over Rs. 20 lakh crores stimulus package which was announced in response to the COVID-19 crisis. The fund whose duration will be 10 years till 2029, aims at providing medium to long term facility of debt financing for investment in viable projects for community farming assets and post-harvest management infrastructure through financial support and interest subvention. The fund which will be managed and monitored through an Online Management Information System (MIS0 platform, will enable all the qualified entities to apply for loans under the fund. It will be provided by the government for setting up of cold stores and chains, silos, warehousing, e-marketing points linked toe-trading platforms ripening chambers, grading and packaging units, besides PPE projects for crop aggregation sponsored by state/central/local bodies. |
About PM-Kisan Scheme:
PM-Kisan Samman Nidhi Yojana is an ongoing scheme which was implemented by the central government in 2018.
Under the scheme, the government has been providing annually Rs. 6000 in three equal installments to 14 crores farmers. The amount has been transferred directly into the bank accounts of beneficiaries through Direct Benefit Transfer (DBT) mode.
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