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PM launches farm infra scheme
Why is it in news?
- Prime Minister Modi launched a financing facility of Rs 1 lakh crore under the Agricultural Infrastructure Fund.
- Prime Minister also released ₹17,000 crore to 8.5 crore farmers as the sixth instalment of the PM-Kisan scheme.
Details:
- Under the infrastructure scheme, banks and financial institutions will provide loans to cooperative societies, farmer producer companies, SHGs, entrepreneurs, start-ups, and infrastructure providers.
- According to the guidelines, all loans up to ₹2 crore will be disbursed with a 3% interest subsidy.
- The loans will be disbursed in the next four years with a sanction of ₹10,000 crore in 2020-21 and ₹30,000 crore in the next three years.
- The objective is to provide medium-to-long term debt financing for post-harvest infrastructure and community assets for marketing of farm produce.
Significance:
- The scheme will provide better warehousing and cold storage facilities for farmers.
- It will help farmers get higher prices for their crops.
- It will also help create new jobs as food processing and post-harvest facilities are set up in rural India.