The Agriculture Infrastructure Fund (AIF) has launched the ‘Bharat’ campaign, a strategic initiative aimed at bridging infrastructure gaps and maximizing agricultural investment. Presently, an impressive sum of Rs 26,064 crores has been sanctioned for a total of 33,369 projects, underlining the fund’s substantial impact on agricultural development.
Initiated in 2020, the Agriculture Infrastructure Fund scheme seeks to address infrastructure deficiencies within the agricultural sector while attracting crucial investment. The scheme focuses on enabling medium to long-term debt financing for viable post-harvest management and community farming initiatives. It offers incentives such as 3% interest subvention and credit guarantees for loans up to Rs 2 crores, aiming to secure Rs 1 Lakh crore from banks and financial institutions. The resultant traction has been remarkable, as evidenced by the Rs 44,208 crores total agricultural investment facilitated by the sanctioned projects.
A significant addition to the AIF Scheme is the ‘BHARAT’ (Banks Heralding Accelerated Rural & Agriculture Transformation) component. This initiative, active from July 15 to August 15, 2023, seeks to harness public benefits and foster competitiveness among various financial institutions. This competitive spirit aims to expedite loans for agricultural infrastructure projects. Outstanding performers, spanning commercial banks, regional rural banks, small finance banks, NBFCs, and cooperative banks, will be lauded following the culmination of the BHARAT campaign. As of July 31, 2023, several banks have already approved Rs 1239 crores for 1375 projects within this campaign.
To ensure the campaign’s success, over 100 banking executives, including Managing Directors, Chairmen, and Executive Directors from diverse financial institutions, participated in its launch in July 2023. Regular updates are shared with participating banks to maintain enthusiasm, encourage competition, and motivate them to exceed their set goals.
Effective communication channels are established with bank executives to assess campaign progress and bolster participation. Banks are encouraged to prioritize agricultural infrastructure projects, yielding favorable responses so far.
The Ministry sets annual targets for banks based on their client base, reach, agricultural contribution, and past performance. AIF Nodal Officers are designated in bank head offices to oversee the entire implementation process, from application to reimbursement. Regular interactions with these officers gauge scheme advancement and offer guidance, exemplified by the “Bankers are Anchors” program held at NABARD HQ in December 2022.
The Ministry actively engages in capacity-building sessions at Bankers’ Training Colleges and conducts awareness programs through video conferencing to promote the AIF Scheme. The heightened involvement of the banking sector is evident through these initiatives. Recognition ceremonies honor exemplary bank executives and teams. Social media groups connect AIF teams from various banks, facilitating communication, addressing challenges, and providing support to elevate lending towards agricultural infrastructure.
