NABARD gives sanction for proposals worth Rs 1,568 cr under Agri Infra Fund

Photo: Wikipedia

The National Bank for Agriculture and Rural Development (NABARD) has given in-principle sanction for Rs 1,568 crore worth of proposals received from agri-credit societies in 22 states under the recently launched Rs 1 lakh crore Agri Infrastructure Fund, the Parliament was informed on Tuesday.

Agriculture Minister Narendra Singh Tomar, in a written reply to the Lower House, said the Agriculture Infrastructure Fund was launched last month for developing farm gate infrastructure facilities.

"So far, NABARD has received 3,055 proposals of PACS (Primary Agriculture Credit Societies) through state cooperative banks in 22 states for which in-principle sanction of Rs 1,568 crore has been accorded," he said.

The first in-principle sanction of Rs 1,128 crore was made to over 2,280 farmer societies by NABARD, he said.

The operational guidelines of the scheme have been circulated to all states and meetings have been held for early roll out of the scheme, he added.

The minister said Memorandum of Understanding (MoUs) have been signed with all 12 public sector banks, IDBI and Yes Bank by the Union Agriculture Ministry, and a portal for the scheme has been created.

The scheme, to be implemented for ten years till 2029, aims to provide medium- to long-term debt financing facility for investment in viable projects for post-harvest management infrastructure and community farming assets through interest subvention and financial support.

Under the scheme, Rs 1 lakh crore will be provided by banks and financial institutions as loans to PACS, marketing cooperative societies, farmer producers organizations (FPOs), self help groups, farmers, joint liability groups, multipurpose cooperative societies, agri-entrepreneurs, start-ups and Central/state agency or local body sponsored public private partnership project.

All loans under this financing facility will have interest subvention of 3 per cent per annum up to Rs 2 crore. This subvention will be available for a maximum period of 7 years.

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 up to Rs 2 crore. The fee for this coverage will be paid by the government.

In case of FPOs, the credit guarantee may be availed from the facility created under FPO promotion scheme of Department of Agriculture, Cooperation & Farmers Welfare (DACFW).

Moratorium for repayment under this financing facility may vary subject to minimum of 6 months and maximum of 2 years.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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