The government has fast tracked the procedures for the approval of doubling the credit target of the Agriculture Infrastructure Fund (AIF) which is expected to be complete by mid-April with the cabinet approval. However, there could be some reforms in the guidelines, too to help achieve the target faster, sources said.
After the launch of AIF in 2020, under which the beneficiaries get loans from banks at 6 per cent interest as the Centre bears 3 per cent interest subsidy, there are many new schemes started by the government in the agriculture sector, officials said adding AIF needs to be aligned with those schemes. For instance, the Pradhan Mantri Dhan-Dhaanya Krishi Yojana (PMDDKY) was launched in July last year in which infrastructure development in 100 identified districts is one of the key objectives.
