Are you a farmer, agri-entrepreneur, or startup looking to scale your agricultural infrastructure?

The Agriculture Infrastructure Fund (AIF), a flagship initiative under the Atma Nirbhar Bharat Abhiyan, is revolutionizing how agri-business is financed in India. With a massive ₹1 lakh crore financing facility, this fund is designed to reduce post-harvest losses, modernize logistics, and significantly boost income across the agricultural value chain.

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Core Financial Benefits & Incentives

The AIF offers some of the most attractive financial levers available in the sector today:

• 3% Interest Subvention: Get a 3% annual interest subsidy on loans up to ₹2 Crore per project. This benefit is available for 7 years (including the moratorium period).

• Credit Guarantee Coverage: Loans up to ₹2 Crore are covered under the CGTMSE scheme, with the government bearing the guarantee fee.

• Top-Up Subsidies: You can combine AIF benefits with other Central and State schemes such as PMKSY, NHB, NABARD, or RIPS 2024 for maximum capital subsidy.

• Multi-Project Facility: Private entities can undertake up to 25 projects at different locations, with the interest benefit applicable up to ₹2 Crore per project.

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What Projects Are Eligible?

The fund supports a wide array of infrastructure aimed at post-harvest management and community assets:

• Storage & Logistics: Warehouses, Silos, Cold Chains, and Reefer Vans.

• Processing Units: Primary processing for cereals, pulses, oilseeds, and fruits.

• Smart Farming: Drones, IoT systems, AI-based monitoring, and GIS advisory.

• Input Production: Organic fertilizers, biofuels, and biogas units.

• Community Assets: Hydroponics, mushroom farming, greenhouses, and vertical farming.

Who Can Apply? (Beneficiaries)

The scheme is highly inclusive, targeting:

• Farmers and Agri-Entrepreneurs

• Startups and Private Companies

• Farmer Producer Organizations (FPOs) and Cooperative Societies

• PACS, SHGs, and APMCs

How KIP Can Help You Navigate AIF

Navigating government subsidies and bank financing can be complex. KIP provides end-to-end support to ensure your project’s success:

1. Subsidy Viability Report (SVR): Identifying the best eligible subsidies for your specific project.

2. Detailed Project Report (DPR): Creating professional, bankable DPRs aligned with official norms.

3. Bank Loan Support: Securing financing at competitive, lower interest rates.

4. Compliance Management: Handling everything from AIF registration to timely subsidy claim processing.

Frequently Asked Questions (FAQs)

1. How does KIP assist in the AIF application process? KIP provides end-to-end assistance, including feasibility checks, preparing bank-ready DPRs, coordinating with banks for loan sourcing, and managing the documentation required to claim the 3% subsidy on the government portal.

2. Can an entity claim subsidy for more than one project? Yes. Private entities can claim interest subvention for up to 25 projects at different locations. Each project is eligible for the benefit on a loan amount up to ₹2 Crore.

3. Who provides the guarantee for the loan under AIF? For loans up to ₹2 Crore, the credit guarantee is provided by CGTMSE. The best part is that the government pays the guarantee fee, reducing the burden on the borrower.

4. Is it possible to combine AIF with other government subsidies? Absolutely. AIF is designed to be “stackable.” You can “top-up” the AIF interest subvention with capital subsidies from other schemes like the National Horticulture Board (NHB), NABARD, or various State Logistics Policies.