Page 609 - ES 2020-21_Volume-1-2 [28-01-21]

236 Economic Survey 2020-21 Volume 2

Figure 6: Credit Disbursement and Gross Cropped Area are Positively Related

7.75 AP PUNJAB RAJ
TELANGANA TN KAR
KERALA UP
6.75 ODISHA CH HAR GUJ MP
Log (Total Crop Loans) 5.75 HP UK JH ASSAM BIHAR WB MAH

4.75
TRIPURA
NAGALAND
SIKKIM MEGHALAYA
3.75 MANIPUR
MIZORAM
ARUNACHAL
PRADESH
2.75
2 2.5 3 3.5 4 4.5
Log (Gross Cropped Area)
Source: Based on data received from DAC&FW

Box 2: Agriculture Infrastructure Fund

Hon’ble Finance Minister on 15.05.2020 announced a ` 1 lakh crore Agriculture Infrastructure Fund
for creation of farm-gate infrastructure for farmers. Accordingly, central sector scheme of financing
facility under Agriculture Infrastructure Fund was formally launched by the Hon’ble Prime Minister
of India on 09.08.2020.

This scheme is operational from the year 2020-21 to 2029-30. The scheme provides for medium to
long term debt financing facility for investment in viable projects for post-harvest management
infrastructure and community farming assets Under the scheme, ` 1 lakh crores will be provided by
banks and financial institutions as loans to primary agricultural credit societies (PACS), marketing
cooperative societies, farmer producers organizations (FPOs), self help group (SHG), farmers, joint
liability groups (JLG), multipurpose cooperative societies, agri-entrepreneurs, startups and central/
state agency or local body sponsored public private partnership project, etc.

All loans under this financing facility will have interest subvention of 3 per cent per annum up to a
limit of ` 2 crores. This subvention will be available for a maximum period of 7 years. Further, credit
guarantee coverage will be available for eligible borrowers from this financing facility under Credit
Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan up to ` 2 crores.

Memorandum of Understandings (MoUs) with all 12 public sector banks and 11 private sector
banks have been signed by DAC&FW. A portal for the scheme has been created. As on 15.01.2021,
` 2991 crores has been ‘in principle’ sanctioned under the scheme to 3055 PACS by NABARD.
PACS have submitted 3774 applications for loan amount of ` 2741 crores. 1695 applications have
been received through the portal from entities other than PACS of which 964 applications seeking
loan of ` 934 crores have been prima facie found eligible and sent to respective banks. Out of 964
applications, 230 have been sanctioned a loan amount of ` 235 crores by banks.