3% Interest Subsidy Scheme AIF

Central Sector Scheme of Financing Facility under 'Agriculture Infrastructure Fund

Introduction:

‍The initiative emphasizes the pivotal role of agricultural infrastructure in enhancing production dynamics and ensuring fair compensation for farmers. Announced by the Finance Minister on May 15, 2020, the scheme provides ₹1 lakh crore for developing infrastructure at the farm-gate level, including aggregation points, which are essential for post-harvest management.

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Objectives:

‍The scheme aims to mobilize medium to long-term debt financing to fund viable projects for post-harvest management infrastructure and community farming assets. This financing will support incentives and financial assistance to improve the overall agricultural infrastructure, benefiting various stakeholders within the agricultural ecosystem.

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Quantum of Assistance :

‍The scheme offers a financing facility of ₹1 lakh crore, with interest subvention of 3% per annum up to a limit of ₹2crore for a maximum period of 7 years. Credit guarantee coverage is also provided up to 2 Cr under the scheme, emphasizing support for lower-risk financial offerings to enhance agricultural infrastructure.

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Eligible Activities :

Eligible projects include various types of infrastructure developments like hydroponic farming, mushroom farming, vertical farming, and infrastructure for precision agriculture. Projects that focus on the supply chain, like warehousing, cold stores, packaging units, community farming assets like organic input production and infrastructure for precision agriculture, and e-marketing platforms, are also eligible under this scheme. It also finances primary processing activities like cleaning, de-stoning, sorting, grading, etc. for various crops.

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Implementation Period :

‍The scheme is operational from the fiscal year 2020-21 to 2032-33,with loan disbursements planned to complete by 2025-26. The plan outlines a systematic disbursement schedule to ensure the phased development of infrastructure over the specified period.

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Eligibility Criteria :

‍Eligible entities include Primary Agricultural Credit Societies (PACS), Farmer Producer Organizations (FPOs), agricultural entrepreneurs, startups, and public-private partnerships sponsored by central or state agencies. Special emphasis is given to projects that incorporate digital connectivity and green energy solutions.

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Application and Documentation :

‍The application process involves registering through an online platform, which ensures transparency and efficiency. Required documentation typically includes detailed project reports, proof of eligibility, and other statutory documents necessary for verifying the project's viability and compliance with the scheme's guidelines.

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Procedure for Disbursement and Appeals :

‍Funds are disbursed based on the progression of approved projects, with regular assessments to ensure adherence to the stipulated guidelines. Appeals regarding disbursement can be addressed through a structured grievance redressal mechanism set up within the scheme's operational framework.

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Conclusion:

‍The "Agriculture Infrastructure Fund" aims to transform the agricultural landscape by addressing infrastructural deficits and enhancing the efficiency of the agricultural value chain. This scheme is designed to leverage financial support to foster a more resilient and sustainable agricultural sector, thereby contributing to increased productivity and profitability for farmers and associated entities.

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Rapid Consulting's Role in Facilitating the Process :

‍Rapid Consulting could offer expert services to assist stakeholders such as farmers, Farmer Producer Organizations (FPOs), and agricultural entrepreneurs in navigating the complexities of the 'Agriculture Infrastructure Fund'. Their role would include guiding these entities through the application process, understanding the eligibility criteria, and ensuring compliance with the scheme’s guidelines to maximize the benefits from investments in post-harvest management infrastructure and community farming assets.

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Impact of the Scheme on Industrial Growth :

‍This scheme supports the agricultural sector by providing financing facilities for projects aimed at enhancing post-harvest infrastructure and community assets. By facilitating investments in crucial areas such as cold storage, warehousing, and logistics, the scheme aims to reduce post-harvest losses, increase farmers' income, and improve market access, thereby promoting overall economic growth and sustainability in the agricultural sector.

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Future Prospects and Enhancements :

‍Future enhancements could include broadening the scope of eligible projects to support a wider range of post-harvest management activities and community farming assets. The scheme could also increase its funding cap or extend the eligibility to additional entities, enhancing its impact and reach. Integration with other national or state agricultural initiatives could provide a more comprehensive support system for India's agricultural infrastructure development.

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FAQs

What is the Agriculture Infrastructure Fund Scheme ?

This scheme offers a financial facility up to ₹1 lakh crore for developing agricultural infrastructure at the farm-gate and aggregation points, targeting entities like FPOs, PACs, and agricultural entrepreneurs.

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Who is eligible for this scheme ?

Entities eligible include FPOs, PACS, agricultural entrepreneurs, startups, and others involved in agricultural infrastructure projects.

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How does an entity apply for this scheme ?

Applications must be submitted through the designated online platform provided by the scheme, adhering to specific guidelines and within set deadlines.

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What are the financial benefits of participating in this scheme ?

Benefits include interest subvention on loans, credit guarantees, and support for project management and handholding through Project Management Units (PMUs).

What happens if incorrect information is provided in the application ?

Misrepresentation or incorrect information can lead to penalties, repayment of the subsidy with interest, and potential legal actions.

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How does Rapid Consulting assist in this process ?

Rapid Consulting could streamline the application and compliance processes for entities, ensuring they maximize the benefits received from the scheme without administrative burdens.

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Target Sectors in India :

‍The "Agriculture Infrastructure Fund" under the Central Sector Scheme aims to enhance post-harvest infrastructure and community farming assets. It supports a wide range of projects like cold storage, warehouses, and innovative farming techniques (e.g., hydroponic and aeroponic farming) across various states in India to improve agricultural efficiency and reduce wastage.

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Eligibility for Existing Businesses and New Ventures :

‍Eligibility spans a diverse group of stakeholders including Farmers, Farmer Producer Organizations (FPOs), Agricultural Cooperative Societies, and Startups. Projects must contribute to the agricultural value chain in areas such as post-harvest management and community farming assets to qualify for funding.

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Integration with Other Subsidies and Incentives :

The scheme integrates with existing subsidies and financial supports under different government policies. It allows beneficiaries to access additional subsidies and credit facilities, promoting comprehensive development of agricultural infrastructure.

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Application Process :

‍Applications are submitted through an online platform that ensures transparency and facilitates easy access to financing. This system allows for faster processing, approval, and monitoring of applications, aligning with digital transformation goals in government services.

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Geographical Preferences in India :

‍The scheme prioritizes a diverse range of projects across all states, with specific focus areas identified based on agricultural output and infrastructure needs. State-specific allocations ensure targeted development and address regional disparities in agricultural infrastructure.

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Why Choose Rapid Consulting ?

SpecializedExpertise:

Our team at Rapid Consulting boasts in-depth knowledge of subsidy schemes, ensuring you get the most out of your investment.

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End-to-End Assistance:

From initial assessment to final application, we manage the entire process, making it seamless and hassle-free for your business.

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Maximized Benefits:

We ensure that you fully leverage the financial incentives available, boosting your company's growth and profitability.

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Here's how we support our clients through our comprehensive service:

Consultation and Assessment:

We provide detailed consultations to understand the specific needs and objectives of our clients. Through this assessment, we determine eligibility criteria and feasibility for participation in the scheme.

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Documentation Preparation:

Our team assists in preparing all necessary documentation required for the subsidy application. This includes gathering financial records, project details, investment plans, and any other relevant in formation needed for submission.

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Application Management:

We manage the entire application process, ensuring that all documents are submitted accurately and on time. Our experts liaise with relevant government authorities and agencies to streamline the submission process.

Negotiation and Follow-up:

In case of any queries or requests for additional information from the authorities, we handle negotiations on behalf of our clients. We ensure prompt responses and provide any further documentation required.

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Subsidy Disbursement:

Upon approval, we facilitate the disbursement of the subsidy amount to our clients. We ensure that all procedural formalities are completed smoothly for the timely release of funds.

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Post-Subsidy Support:

Our services extend beyond subsidy acquisition. We provide ongoing support to our clients, assisting with compliance requirements, reporting obligations, and any other post-subsidy concerns.

With Rapid Consulting, clients can rely on our expertise and experience to navigate the complexities of the 3% Interest Subsidy Scheme for Agriculture Infrastructure Units, including Primary Processing Units and Solarisation initiatives. We aim to maximize benefits and facilitate the development of efficient and sustainable agricultural infrastructure

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How to Reach Us ?

Website:

Visit our official website for detailed information, service offerings, and to schedule an online consultation.

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Direct Contact:

Call us at +91-9467248028 / 9416506136 or email info@rapidconsulting.into discuss your needs directly with our experts.

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Office Visit:

Our offices are open for in-person consultations at 134, Rapid Consulting, First floor Below Paysam Restaurant, Near Samsung Care. Lajpat Nagar, Rajgarh Road Hisar, Haryana-125001.

Here, you can meet with our consultants who can provide personalized guidance tailored to your business's specific circumstances. Engage with Rapid Consulting today to leverage their expertise in enhancing your business's financial and operational performance through the Collateral Free Credit Guarantee Scheme and other beneficial state initiatives. Whether online, over the phone, or in person, Rapid Consulting is ready to assist you in advancing your business goals in Haryana.

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