Manoj Ahuja launched a new campaign called BHARAT for Banks under Agri Infra Fund

Context:

Agriculture Secretary of Ministry of Agriculture and Farmers Welfare, Manoj Ahuja launched a new campaign for banks under Agri Infra Fund name BHARAT (Banks Heralding Accelerated Rural & Agriculture Transformation).

 What’s in News?

• The campaign will run for a month from 15^th July 2023 to 15^th August 2023 with a target of raising 7200 crore.
• The launch event took place through a video conferencing, in which more than 100 banking officials including MDs/Chairman, EDs, Regional Rural Banks, Small Finance Banks, NBFCs and selected Co-operative Banks from public and private sector participated.
• Joint Secretary Agriculture Infrastructure Fund (AIF), Samuel Praveen Kumar highlighted the progress made under the Agri-Infra Fund scheme which has been constructed of over 31,850 agricultural infrastructure projects in the country with a loan amount of 24,750 crore. The total outlay of the scheme is Rs.42,000.
• Participated executives from banks came up with many suggestions to take the AIF to newer heights.
• Manoj Ahuja congratulated the top performing banks in different categories for their laudable effort in contributing to taking this scheme forward and appealed to all the banks to achieve targets considering the vast potential for agri-infra projects in the country.
• The Ministry also advised the banks to assess the impact of the projects created under the scheme at ground level.

About Agriculture Infrastructure Fund:

• Agriculture Infrastructure Fund has been approved by the Union Cabinet in 2020.
• The scheme aims to provide medium-long term debt financing facility for investment in viable projects related to post-harvest management infrastructure and community farm assets.
• This scheme provides interest subvention and financial assistance.
• The scheme has been launched for a total of 10 years from FY2020 to FY2032.

Benefits of Agriculture Infrastructure Fund:

• Interest Subvention: Interest Subvention of 3% is available on all loans up to a limit of Rs.2 crore. This rebate is available for a maximum period of 7 years.
• Credit Guarantee Coverage: eligible borrowers can avail credit guarantee coverage under the Credit Guarantee Fund Trust for Micro and Small Enterprises Scheme (CGTMSE). This is provided for the loans up to Rs.2 crore and the fee is paid by the government.
• FPO: Farmers Producer Organization can avail credit guarantee coverage under the FPO Promotion Scheme of the Department of Agriculture, Cooperation and Farmers Welfare (DACFW).
• Repayment Moratorium: Repayment Moratorium may vary under this financial facility. The minimum moratorium period is 6 months and maximum is 2 years. Find More News Related to Banking