Agri Infrastructure Fund

Agricultural Infrastructure refers to the essential physical and organizational facilities that strengthen and modernize India’s agricultural ecosystem. It includes systems that support farming, food processing, post-harvest management, and efficient distribution. The development of robust agri-infrastructure is vital for enhancing productivity, ensuring food security, and improving farmers’ livelihoods.

The Agriculture Infrastructure Fund (AIF) is a flagship Central Government scheme aimed at providing medium- and long-term debt financing for the creation of post-harvest management infrastructure and community farming assets through financial institutions.

• Total Corpus: ₹1 Lakh Crore financing facility for FY 2024–25.
• Interest Subvention: 3% interest subvention per annum for loans up to ₹2 Crore, for a tenure of up to 7 years.
• Credit Guarantee: Coverage up to ₹2 Crore, with guarantee fees reimbursed by the Government of India.
• Participating Institutions: Commercial Banks, Cooperative Banks, RRBs, Small Finance Banks, NCDC, and NBFCs.
• Project Management Unit (PMU): Provides technical and operational assistance for project execution.
• Single-Window Digital Portal: Simplified online application, approval, and tracking system.
• Scheme Convergence: Integrated with Central and State Government schemes for optimized implementation.
• Flexible Repayment: Moratorium period between 6 months to 2 years.
• Defined Project Location: Each project is linked to a specific LGD (Local Government Directory) code, ensuring localized development.

Eligible Applicant and Institutions

The following entities are eligible to apply under AIF

• Individual Farmers
• Farmer Producer Organizations (FPOs)
• Primary Agricultural Credit Societies (PACS)
• Start-ups and Agri-Entrepreneurs
• Agricultural Produce Market Committees (APMCs)
• Cooperatives and Self-Help Groups (SHGs)

Eligible Projects

AIF supports a wide range of infrastructure projects in the agricultural and allied sectors, including

Post-Harvest and Value Chain Projects

• Warehouses
• Cold Storage & Cold Chain Facilities
• Logistics & Distribution Hubs
• Sorting & Grading Units
• Ripening Chambers
• Organic Input Production Units
• Compressed Biogas (CBG) Plants
• Seed Processing Units
• Honey Processing Units
• Plant Quarantine Units

Modern and Advanced Farming Projects

• Polyhouses / Greenhouses
• Hydroponic Farming Units
• Mushroom Cultivation Units
• Vertical Farming Facilities
• Farm/Harvest Automation Projects (e.g., Combine or Sugarcane Harvesters)
• Hi-Tech Nurseries

Market Expansion and Value Realization

• Direct access to broader markets and consumer bases.
• Reduction in dependency on intermediaries and lower post-harvest losses.

Better Market Timing and Storage

• Access to cold storage and packaging enables farmers to store produce longer.
• Freedom to sell at optimal market prices.

Productivity and Cost Efficiency

• Adoption of advanced technology, mechanization, and efficient resource use.
• Higher yields with reduced input costs.

Financial Benefits

• Affordable financing through interest subvention and extended tenure.
• Refinance support to banks and NBFCs for enhanced lending capacity.

Collaboration and Ecosystem Strengthening

• Facilitates partnerships among farmers, FPOs, and agri-enterprises for value chain integration.

Risk Mitigation and Stability

• Provides financial cushioning during crop failures, natural calamities, or adverse seasons.

Rural Prosperity

• Enhances farmer income and living standards.
• Drives rural infrastructure and economic growth.

To apply for financial assistance under the Agri Infrastructure Fund, applicants must submit the following documents (subject to variation based on the institution’s requirements):

For Individual Farmers / Agri-Entrepreneurs

1. Application Form (as prescribed by the lending institution)
2. KYC Documents – Aadhaar Card, PAN Card, and Passport-size Photographs
3. Land Ownership Proof – Land records, lease agreement, or consent letter (as applicable)
4. Bank Account Statement (last 6 months)
5. Project Report / DPR (Detailed Project Report) – Including cost estimates, financial viability, and repayment plan
6. Quotation / Proforma Invoice for machinery, construction, or equipment
7. No Objection Certificate (NOC) from Gram Panchayat / Municipality (if required)
8. Caste / Category Certificate (for applicable subsidy categories)
9. Income Proof / ITR / Net Worth Certificate (if required by the lending institution)

For Farmer Producer Organizations (FPOs) / Cooperatives / PACS

1. Certificate of Registration / Incorporation Certificate
2. PAN Card of Entity
3. KYC Documents of Promoters / Directors
4. Board Resolution / Authorized Signatory Letter
5. Audited Financial Statements (Last 2 Years)
6. Bank Statement (Last 6 Months)
7. Project Report / Business Plan with Financial Projections
8. Land Ownership / Lease Proof or Site Details
9. Subsidy / Convergence Scheme Details (if applicable)

For Start-ups / Private Enterprises

1. Incorporation Certificate / Udyam Registration
2. PAN / GST Registration Certificate
3. KYC of Directors / Promoters
4. Detailed Project Report (DPR) with financial model
5. Net Worth Certificate / CA-certified Balance Sheet
6. Business Plan and Loan Utilization Plan
7. Land or Facility Ownership / Lease Agreement
8. Bank Statement (Last 12 Months)
9. Credit Bureau Report (if applicable)

The Agriculture Infrastructure Fund serves as a cornerstone for transforming Indian agriculture into a modern, competitive, and sustainable sector. By offering accessible financing, subsidies, and technical assistance, AIF empowers farmers and agri-entrepreneurs to build resilient infrastructure, enhance productivity, and contribute to national food security and rural prosperity.