Union Cabinet approves expansion of agriculture infrastructure fund

New Delhi: In a move to bolster agricultural infrastructure and support the farming community, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the progressive expansion of the Central Sector Scheme of financing facility under the 'Agriculture Infrastructure Fund' (AIF). This expansion aims to broaden the scope of eligible projects and introduce additional supportive measures to create a robust agricultural infrastructure ecosystem across the country.

Under the new initiatives, the scheme will now cover viable projects for building community farming assets. This will enable eligible beneficiaries to develop infrastructure that enhances community farming capabilities, thereby improving productivity and sustainability in the sector. Furthermore, integrated processing projects, which include both primary and secondary processing, will be added to the list of eligible activities under the AIF. Standalone secondary processing projects will be covered under the Ministry of Food Processing Industries (MoFPI) schemes.

In a significant step towards promoting sustainable energy solutions, the convergence of Component-A of the PM-KUSUM scheme with the AIF will be permitted. This will allow farmers, groups of farmers, Farmer Producer Organizations (FPOs), cooperatives, and panchayats to develop agricultural infrastructure while simultaneously adopting clean energy solutions.

The expansion also includes the involvement of NABSanrakshan Trustee Company Private  Limitedt which is expected to enhance the financial security and creditworthiness of FPOs. This, in turn, is likely to encourage greater investment in agricultural infrastructure projects.

Since its launch in 2020, the AIF has played a crucial role in the creation of 6,623 warehouses, 688 cold stores, and 21 silos projects, leading to an additional storage capacity of about 500 LMT across the country. The latest expansion is expected to further accelerate the development of agricultural infrastructure, contributing to the overall growth and resilience of the farming sector in India.