The Union Cabinet on Thursday modified the provisions of the Agriculture Infrastructure Fund in such a way that the ₹1-lakh crore fund is now open to many more stakeholders in agriculture, including Agriculture Produce Marketing Committees (APMCs).
Briefing the meda after the Cabinet meeting, Agriculture Minister Narendra Singh Tomar said unlike the misplaced apprehensions spread by protesting farmer unions, the Central government is trying to strengthen APMCs in the country. “The extension of eligibility to get loans from Agriculture Infra Fund to APMCs is an example of that,” Tomar said.
With the changes, not only APMCs, State agencies, national and State federations of cooperatives, federations of Farmers Producers Organizations (FPOs) and federations of Self Help Groups (SHGs) would also be eligible for this credit.
Similarly, entities would now be able to get interest subvention of 3 per cent per annum not just for one loan up to ₹2 crore, but for multiple projects put up at different locations.
“In case, one eligible entity puts up projects in different locations then all such projects will be now be eligible for interest subvention for loan up to ₹2 crore. However, for a private sector entity there will be a limit of a maximum of 25 such projects. This limitation of 25 projects will not be applicable to State agencies, national and state federations of cooperatives, federations of FPOs and federation of SHGs,” an official statement said.
Location will mean physical boundary of a village or town having a distinct LGD (Local Government Directory) code. Each of such projects should be in a location having a separate LGD code, it said.
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For APMCs, interest subvention for similar loans will be provided for each project of different infrastructure types such as cold storage, sorting, grading and assaying units, and silos, within the same market yard.
Similarly, the period of financial facility has been extended from 4 to 6 years up to 2025-26 and overall period of the scheme has been extended from 10 years to 13 years till 2032-33.
Responding to a question posed, Tomar said the government is always willing to have talks with the protesting farmer unions on anything barring repealing the three farm Acts.
The Cabinet also cleared a proposed from Agriculture Ministry to effect a host of amendments to the Coconut Development Board Act, 1979, including making the post of the Coconut Development Board chairman a non-executive one.