Parliament Question: Financing Facility under Agriculture Infrastructure Fund

**Executive Summary** This document is the answer to Unstarred Question No. 660 in Lok Sabha, to be answered on February 3rd, 2025, regarding the Financing Facility under the Agriculture Infrastructure Fund (AIF). The response details the objectives, present details, and inclusion of the Pradhan Mantri KUSUM Scheme (Component C) within the AIF. The period considered for the data in the report is from the scheme's inception in July 2020 to January 26th, 2026. **Key Points / Main Content** * **Agriculture Infrastructure Fund (AIF)** * The AIF is a Central Sector Scheme designed to mobilize medium and long-term debt financing for post-harvest management infrastructure and community farming assets. * The scheme aims to strengthen agri-logistics, reduce post-harvest losses, promote modern storage, processing, and value-addition facilities, and improve farm-gate level infrastructure. * Banks and financial institutions provide loans with a 3% per annum interest subvention by the Government of India. * Credit guarantee coverage up to ₹2 crore is supported under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and NABSanrakshan. * From July 2020 to January 26, 2026, ₹80,224.15 crore in loan amounts have been sanctioned for 1,50,431 projects, mobilizing an investment of ₹1,27,508 crore. * **Pradhan Mantri KUSUM Scheme (Components B and C)** * Components B and C of the PM-KUSUM Scheme, concerning the solarization of grid-connected agriculture pumps and stand-alone solar pumping systems, are eligible assets for availing AIF benefits in a convergent mode. * Inclusion occurred in September 2020. * The loan component can be converged where groups of farmers are organized as Self Help Groups (SHGs), Joint Liability Groups (JLGs), Water User Associations, Cooperatives, or similar entities, if they create facilities eligible under AIF. * Since September 2020 until 26.01.2026, ₹29.20 crore in loan amount has been sanctioned for 921 projects for Components B and C. **Impact Analysis** **Farmers/Agricultural Community:** * **Impact:** Farmers gain access to medium and long-term debt financing to improve post-harvest management and community farming assets. The scheme also helps to strengthen agri-logistics, reduce post-harvest losses, and improve farm-gate level infrastructure. The PM-KUSUM inclusion allows farmers to avail AIF benefits for solarizing agriculture pumps and systems. * **Action Required:** Farmers can leverage the AIF by organizing themselves into Self Help Groups (SHGs), Joint Liability Groups (JLGs), Water User Associations, Cooperatives, or similar entities. **Banks and Financial Institutions:** * **Impact:** Banks and financial institutions can participate in lending activities with a 3% interest subvention from the government, supported by credit guarantee coverage for loans up to ₹2 crore. * **Action Required:** Banks and financial institutions should promote awareness of this scheme to farmers. **Government of India:** * **Impact:** The Government can support the development of post-harvest management infrastructure and community farming assets with the AIF scheme and can promote solarization of agriculture. * **Action Required:** Monitor the progress and impact of the AIF scheme and ensure effective implementation.

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