PM Narendra Modi will be launching financing facility of Rs.1 lakh crore through video conferencing tomorrow, under Agriculture Infrastructure Fund. Earlier in July, the government had approved the setting up of an agri-infra fund with a corpus of Rs.1lakh crore to extend the subsidy credits for farm infrastructure projects. During the conference, he will also release the 6th instalment under the PM-KISAN scheme of Rs.17,000 crores fund to 8.5 crores farmers.

The Agriculture Infrastructure Fund of Rs.1lakh crore will be provided to farmer producer organisations (FPOs), farmer groups, agri-startups, primary Agri credit societies and agri-tech players by banks and financial institutions as a loan. The loan will be disbursed in 4 year period with the sanction of Rs.10,000 crore in the current financial year and Rs.30,000 crore each in the next coming three years.

The fund will be managed and monitored by an online Management Information System (MIS) platform, which will enable all the different qualified agricultural entities to apply for the loan under the fund. The use of an online platform will provide benefits including transparency of interest rates offered by multiple banks, scheme details such as interest subvention and credit guarantee offered. It also helps in faster approval of loan process and has minimum documentation with the integration of other scheme benefits, said the ministry.