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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