Skip to content

NABARD Refinance and Agriculture Infrastructure Fund (AIF)

The Agriculture Infrastructure Fund (AIF) is a central sector financing facility of Rs 1 lakh crore that provides medium- to long-term debt finance for post-harvest management and community farming asset projects. The scheme is administered by the Department of Agriculture & Farmers Welfare, with the National Bank for Agriculture and Rural Development (NABARD) playing a major refinance and oversight role.

Overview

AIF was announced by the Finance Minister on 15 May 2020 and approved by the Union Cabinet in July 2020. It is operational from FY 2020-21 to FY 2032-33 and is implemented through the agriinfra.dac.gov.in online portal where eligible borrowers file project applications and lenders sanction loans linked to scheme benefits.

Eligibility

Eligible beneficiaries include:

Eligible projects include warehouses, silos, cold storage (see Cold Storage And Pack House), pack-houses, custom hiring centres, primary processing units, sorting and grading units, ripening chambers and supply-chain infrastructure.

Benefit and structure

  • Fund size: Rs 1 lakh crore
  • Interest subvention: 3% per annum on a loan amount up to Rs 2 crore for a maximum of 7 years
  • Credit Guarantee: CGTMSE coverage up to Rs 2 crore, with the guarantee fee paid by the Government
  • Scheme period: 2020-21 to 2032-33

Implementation

Scheduled commercial banks, RRBs, small finance banks and cooperative banks sanction loans under the scheme, with NABARD refinancing eligible portions and the Centre providing the interest subvention and CGTMSE fee. The portal tracks application, sanction, disbursement and subsidy claims.

See also Farmer Producer Organisation Fpo, Primary Agricultural Cooperative Society Pacs, Cold Storage And Pack House and Kisan Credit Card Kcc.

References

  1. National Agriculture Infra Financing Facility. agriinfra.dac.gov.in.
  2. Agricultural Infrastructure Fund (AIF) Scheme. Press Information Bureau.