PM to launch financing facility of Rs 1 lakh cr under Agriculture Infrastructure Fund on Sunday

NEW DELHI: Prime Minister Narendra Modi will launch the financing facility of Rs. 1 lakh crore under the Agriculture Infrastructure Fund and release the sixth instalment of funds of Rs. 17,000 crore to 8.5 crore farmers under the PM-KISAN scheme on August 9 through video conferencing.

Officials said this would boost the rural economy and help build robust marketing and post-harvest infrastructure in the agriculture sector.

The cabinet has approved the Rs 1 lakh crore Agriculture Infrastructure Fund under Atmanirbhar Bharat, which is expected to catalyse creation of post-harvest infrastructure and community farming assets such as cold storage, collection centres and processing units.


“These assets will enable farmers to get greater value for their produce, as they will be able to store and sell at higher prices, reduce wastage, and increase processing and value addition,” said an agriculture ministry official.

Rs 1 lakh crore will be sanctioned under the financing facility in partnership with multiple lending institutions.

“Eleven of the 12 Public Sector Banks have already signed MOUs with agriculture ministry. 3% interest subvention and credit guarantee of up to Rs 2 crore will be provided to the beneficiaries to increase the viability of these projects,” the official said.