Syllabus Section- ECONOMY-AGRICULTURE
Why in news?
Recently the Central Government has launched one lakh crore rupees Agriculture Infrastructure Fund (AIF) in order to bring reforms in agriculture.
AIF & Key Highlights of Announcement
• AIF is a medium – long term debt financing facility and a central sector scheme. It provides funds to invest in viable projects for post-harvest management infrastructure and community farming assets.
• It provides funds through the interest subvention and credit guarantee schemes.
• This scheme has been launched for the financial year 2020 to 2029. Under this scheme, farmers can avail benefits from better production and marketing facilities that is created by the AIF.
• The scheme is a part of the over Rs. 20 lakh crore stimulus package that was announced to respond the Covid-19 pandemic.
• This fund will be managed and monitored by an online Management Information System (MIS).
Objective of the AIF
• The primary aim of the scheme is to provide medium – long term debt financing facility for investing in viable projects for post-harvest management Infrastructure assets.
• Under this initiative, a credit guarantee for loans will be provided up to two crore rupees by the government.
• The government will also provide three percent rebate in the interest on loans up to two crore rupees duration for which is a maximum period of 7 years. It will also provide a moratorium for loan repayment for 6 to 24 months.
• The fund will also help to set up of the Primary Agriculture processing centres and to strengthen the vision from seed to the market.
Source: News on All India Radio (AIR)