‘Agriculture Infrastructure Fund’ Scheme, Affordable rental housing Complexes for urban migrants
1. Central Sector Scheme 'Agriculture Infrastructure Fund'
- The Union Cabinet chaired by the Prime Minister Shri Narendra Modi today has given its approval to a new pan India Central Sector Scheme-Agriculture Infrastructure Fund.
- The scheme shall provide a medium – long term debt financing facility for investment in viable projects for post-harvest management Infrastructure and community farming assets through interest subvention and financial support.
- Under the scheme, Rs. One Lakh Crore will be provided by banks and financial institutions as loans to Primary Agricultural Credit Societies (PACS), Marketing Cooperative Societies, Farmer Producers Organizations (FPOs), Self Help Group (SHG), Farmers, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Startups, Aggregation Infrastructure Providers and Central/State agency or Local Body sponsored Public Private Partnership Project.
- Loans will be disbursed in four years starting with sanction of Rs. 10,000 crorein the current year and Rs. 30,000 crore each in next three financial years.
- All loans under this financing facility will have interest subvention of 3% per annum up to a limit of Rs. 2 crore.
- This subvention will be available for a maximum period of seven years.
- Further, credit guarantee coverage will be available for eligible borrowers from this financing facility under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan up to Rs. 2 crore.
- The fee for this coverage will be paid by the Government.
- In case of FPOs the credit guarantee may be availed from the facility created under FPO promotion scheme of Department of Agriculture, Cooperation & Farmers Welfare (DACFW).
- The total outflow as budgetary support from Government of India (GoI) will be Rs.10,736 crore.
- Moratorium for repayment under this financing facility may vary subject to minimum of 6 months and maximum of 2 years.
- The Project by way of facilitating formal credit to farm and farm processing-based activities is expected to create numerous job opportunities in rural areas.
- Agri Infra fund will be managed and monitored through an online Management Information System (MIS) platform.
- It will enable all the qualified entities to apply for loan under the fund.
- The online platform will also provide benefits such as transparency of interest rates offered by multiple banks, scheme details including interest subvention and credit guarantee offered, minimum documentation, faster approval process as also integration with other scheme benefits.
- The National, State and District level Monitoring Committees will be set up to ensure real-time monitoring and effective feed-back.
- The duration of the Scheme shall be from FY2020 to FY2029 (10 years).
2. Affordable rental housing Complexes for urban migrants / poor
- A large part of workforce in manufacturing industries, service providers in hospitality, health, domestic/commercial establishments, and construction or other sectors, labourers, students etc. who come from rural areas or small towns seeking better opportunities will be the target beneficiary under ARHCs.
- However, The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval for developing of Affordable Rental Housing Complexes (AHRCs) for urban migrants / poor as a sub-scheme under Pradhan Mantri Awas Yojana – Urban (PMAY – U).
- An expenditure of Rs 600 Crore is estimated in the form of Technology Innovation Grant which will be released for projects using identified innovative technologies for construction. Approximately, three Lakh beneficiaries will be covered initially under ARHCs.
- ARHCs will create new ecosystem in urban areas making housing available at affordable rent close to the place of work. Investment under ARHCs is expected to create new job opportunities.
- ARHCs will cut down unnecessary travel, congestion and pollution.
- Government funded vacant housing stock will be converted into ARHCs for economically productive use.
- The scheme would create a conducive environment for Entities to develop AHRCs on their own vacant land which will enable new investment opportunities and promote entrepreneurship in rental housing sector.
- Further, Ministry of Housing & Urban Affairs (MoHUA) has initiated an Affordable Rental Housing Complexes (ARHCs) for urban migrants/poor as a sub-scheme under Pradhan Mantri Awas Yojana (Urban). The scheme was announced by the Hon’ble Finance Minister on 14 May, 2020. This scheme seeks to fulfill the vision of ‘AtmaNirbhar Bharat.
- COVID-19 pandemic has resulted in massive reverse migration of workers/ urban poor in the country who come from rural areas or small towns for seeking better employment opportunities in urban areas.
- Usually, these migrants live in slums, informal/ unauthorised colonies or peri-urban areas to save rental charges.
- They spend lot of time on roads by walking/ cycling to workplaces, risking their lives to cut on the expenses.
