In a move to improve farm related activities in States, the Union government has made an allocation of about ₹1 lakh crore as Agriculture Infrastructure Fund (AIF) in the Budget presented in this financial year. In this, a sum of ₹3,075 crore was allotted tentatively for Telangana on the basis of the share of the State in agriculture production.
As per the set cumulative target of ₹1,230 crore by the end of 2022- 23, so far a total of ₹ 511.30 crore was sanctioned under AIF for 447 projects, and disbursed ₹360 crore for 352 projects. ₹718.70 crore will be disbursed by the end of 2022-23 and an action plan was prepared and sent to all District Collectors for implementing projects through district-level monitoring committees.
The AIF is aimed at funding agriculture infrastructure facilities at farm-gate, aggregation points such as Primary Agriculture Cooperative Societies (PACS), Farmer Producers’ Organisations (FPO) and start-ups.
Under the IAF, farmer entrepreneurs can avail a loan facility to the tune of ₹2 crore and loan repayment period is seven years, including moratorium period of two years.
The eligible activities include post-harvest management projects like storage infrastructure, assaying units, pack house, ripening chamber, cleaning, drying, sorting and grading units, supply chain with e-marketing facility, smart and precision agriculture, input production, farm/harvest automation, purchase of drones, sensors, black chain and artificial intelligence in agriculture.
Individual farmers, farmer groups, agriculture entrepreneurs, large businesses and State agencies can avail the fund.
“For the reasons best known to the officials concerned, we are able to avail only 10% of the fund allocated to Telangana tentatively so far. The Centre is ready to provide another ₹1,000 crore if necessary. But the question is can we be in a position to use the already allocated amount?” asked an official on condition of anonymity.
