In a bold move to revolutionize India's agricultural infrastructure, the Union Cabinet, under the leadership of Prime Minister Narendra Modi, has approved a major expansion of the Central Sector Scheme for financing under the ‘Agriculture Infrastructure Fund’ (AIF). This strategic enhancement is set to make the scheme more appealing, impactful, and inclusive, transforming the landscape of agricultural support in the country.
Here’s a closer look at the key updates:
Empowering Community Farming
The revised AIF now supports the development of ‘viable projects for building community farming assets.’ This initiative aims to boost community farming capabilities, enhancing productivity and sustainability across the sector. By broadening the scope to include a range of eligible projects, the scheme promises to cultivate more robust and resilient agricultural communities.
Integrated Processing Projects
The scope of AIF has been expanded to include integrated primary and secondary processing projects. This change is designed to streamline agricultural processing, though standalone secondary projects will remain under the Ministry of Food Processing Industries (MoFPI) schemes. This integration is expected to create a more cohesive processing infrastructure that supports the entire agricultural value chain.
Synergy with PM-KUSUM
The new alignment allows for the convergence of Component-A of the PM-KUSUM scheme with AIF. This collaboration will benefit farmers, Farmer Producer Organizations (FPOs), cooperatives, and panchayats, promoting the integration of clean energy solutions with agricultural development. This synergy is aimed at fostering sustainable practices and advancing agricultural infrastructure.
Enhanced Credit Guarantee with NABSanrakshan
In a bid to strengthen financial security for FPOs, the AIF credit guarantee coverage is now extended through NABSanrakshan Trustee Company Pvt. Ltd., in addition to CGTMSE. This enhancement is set to boost the creditworthiness of FPOs, encouraging greater investment in agricultural infrastructure.
A Record of Achievement
Since its launch in 2020, the AIF has achieved remarkable milestones, including the establishment of 6,623 warehouses, 688 cold storage facilities, and 21 silos. This expansion has added approximately 500 LMT in storage capacity 465 LMT of dry storage and 35 LMT of cold storage significantly impacting food security and reducing post-harvest losses. With over Rs. 47,575 Crore sanctioned for 74,508 projects, the scheme has mobilized Rs. 78,596 Crore in investment, with a notable Rs. 78,433 Crore from private entities. Furthermore, AIF-supported projects have created over 8.19 lakh rural employment opportunities.
This strategic expansion of the AIF scheme is set to accelerate growth, enhance productivity, and boost farm incomes while reinforcing the sustainability of Indian agriculture. It reflects the Government’s unwavering commitment to advancing the agricultural sector through comprehensive infrastructure development.

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