Centre makes mandis eligible for loans beneath Rs one trn Agri Infra Fund

Centre makes mandis eligible for loans beneath Rs one trn Agri Infra Fund

The union cupboard at the moment accepted a bunch of modifications into the Rs one trillion Agriculture Infrastructure Fund (AIF), together with bringing Agriculture Produce Market Committees (APMCs) or regulated mandis inside its ambit, a transfer which the federal government showcased as its dedication to maintain them functioning.

One key apprehension of the protesting farmers in opposition to the three reform acts introduced final yr has been that when the legal guidelines come into impact, the mandis might be dismantled, as lured by low taxes, buying and selling will shift outdoors their ambit.

Other than APMCs, the revised pointers have additionally made state degree businesses and cooperatives, eligible to get loans upto Rs 2 crore to construct farm gate storage infrastructure and processing services at curiosity subvention of three per cent.

The loans have a moratorium on compensation that can differ from six months to 2 years.

Farm storage and processing infrastructure comparable to silos, packing items, assaying items and so on. might be taken up beneath the scheme.

To date, UP, Rajasthan and Maharashtra are the highest three states on tentative allocation of the Rs 100,000 crore Fund.

The choice to incorporate APMCs into the fold of AIF was introduced within the FY-22 Union Funds by Finance Minister Nirmala Sitharaman.

In the present day the Cupboard gave its formal approval to the identical together with incorporating another key modifications.

“In the present day’s determination of the Union Cupboard is as soon as a reiteration of the Centre’s dedication to not solely be sure that APMCs aren’t solely run however they’re strengthened as nicely. Opposite to what has been stated,” Agriculture Minister Narendra Singh Tomar informed reporters after the assembly of the cupboard.

Among the many different modifications, the interval of monetary facility beneath AIF has been prolonged from 4 to six years upto 2025-26 and total interval of the scheme has been prolonged from 10 to 13 years upto 2032-33.

So, far beneath AIF, curiosity subvention beneath AIF is supplied just for mortgage taken for challenge in a single location, nevertheless, henceforth, if an eligible entity places up initiatives in numerous places then all such initiatives will now turn into eligible for curiosity subvention for mortgage upto Rs 2 crore.

For the non-public sector, there might be a restrict of 25 initiatives however the identical restrict received’t be relevant for state businesses, nationwide and state federations of cooperatives, FPOs and SHGs.

“For APMCs, curiosity subvention for a mortgage upto Rs. 2 crores might be supplied for every challenge of various infrastructure varieties e.g. chilly storage, sorting, grading and assaying items, silos, et throughout the identical market yard,” the revised pointers stated.

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