New AIF Expansion to Strengthen Agricultural Infrastructure

The Union Cabinet has approved a comprehensive expansion of the ₹1 lakh crore Agricultural Infrastructure Fund (AIF) scheme. Announced on Wednesday, this decision marks a major step towards making the AIF more impactful, inclusive, and attractive to potential beneficiaries. The Cabinet, led by Prime Minister Narendra Modi, has introduced several key modifications to enhance the scheme’s reach and effectiveness.

The revised AIF scheme now encompasses a broader range of eligible activities, specifically integrating primary and secondary processing projects into its funding criteria. This expansion reflects the government’s commitment to improving agricultural infrastructure by supporting community farming assets and advanced processing facilities. Notably, standalone secondary projects will no longer be eligible under AIF but will be addressed through other food processing ministry initiatives.

Furthermore, the government has facilitated the convergence of Component-A of the PM-KUSUM scheme with AIF, allowing for combined benefits for farmers, farmer producer organisations, cooperatives, and panchayats. The AIF scheme’s credit guarantee coverage will also be extended to include the NABSanrakshan Trustee Company Pvt Ltd, thereby broadening the financial safety net for farming operations. Since its inception in 2020, the AIF has been pivotal in establishing 6,623 warehouses, 688 cold storage units, and 21 silo projects, which collectively enhance the country’s storage capacity by approximately 500 lakh tonnes.

The Cabinet’s approval to expand the AIF scheme represents a strategic move to address the evolving needs of India’s agricultural sector. By broadening the scope to include various processing projects and integrating with existing schemes, the government aims to strengthen the agricultural infrastructure significantly. With ₹47,575 crore already sanctioned for over 74,000 projects, this expanded scheme is set to mobilise further private investment, thereby supporting the overall growth and efficiency of the agricultural sector. The enhancements to the AIF will not only foster better infrastructure but also contribute to the sustainable development of Indian agriculture.