Agriculture Infrastructure Fund

What AIF funds

The Agriculture Infrastructure Fund, launched in July 2020, is a ₹1 lakh crore (₹100,000 cr) corpus that subsidises bank lending for post-harvest management infrastructure and community farming assets. It is the single largest agri-infrastructure financing window outside NABARD's Rural Infrastructure Development Fund (RIDF). Where RIDF supports state-government projects, AIF targets private and cooperative borrowers — farmers, FPOs, PACS, agri-entrepreneurs, startups, SHGs, and APMCs.

Eligible project categories

• Warehouses, silos, godowns (CWC/SWC standard).
• Cold storage, cold chain, ripening chambers, reefer vans, controlled-atmosphere storage.
• Pack houses, sorting, grading, waxing, palletisation.
• Primary processing units — flour mills, pulse mills, oil expellers, sugar units (small), spice processors, mini-rice mills.
• Custom Hiring Centres for farm machinery (convergent with SMAM).
• Smart and precision farming inputs — sensors, soil-moisture systems, drones, polyhouses.
• Organic input units (vermicompost, biofertiliser, BRC).
• Logistics — last-mile cold reefer, transport aggregator hubs.

Benefit structure

• 3 % interest subvention per annum on loans up to ₹2 cr per project per location. The subvention is credited monthly to the borrower's loan account by NABARD/SFAC against bills raised by the lender.
• CGTMSE credit guarantee fee paid by GoI for loans up to ₹2 cr. The lender lends without seeking collateral up to that cap.
• Maximum 25 projects per private entity (no cap for FPOs, PACS, cooperatives).
• Convergence with state subsidy schemes (e.g., MIDH, PMFME, SMAM) — capital subsidies can be stacked on top of AIF interest subvention.

How to apply

1. Identify lending bank from the AIF empanelment list (38+ scheduled commercial banks, RRBs, cooperatives, NCDC).
2. Prepare a DPR with financial feasibility, land/lease proof, technical layout.
3. Register and submit application on agriinfra.dac.gov.in; the portal routes the file to the chosen lender.
4. Lender does its own appraisal; on sanction, MoA&FW issues the interest-subvention eligibility certificate.
5. On disbursement, interest subvention is credited monthly against EMI debit.

Common rejection reasons

• Project type outside the AIF eligibility matrix — e.g., pure trading or restaurant-style food service.
• Inadequate equity or promoter contribution (most lenders require 10-25 % depending on the project size).
• Land title not clear; lease deed not registered.
• FSSAI / GST / Udyam registration missing for entities that need them.

Recent enhancements and timeline (2024 — 2026)

• February 2024: Cabinet expanded AIF eligibility to organic input units, briquette/biomass plants, integrated processing units; per-location loan cap harmonised at ₹2 crore; explicit window for FPO-led common infrastructure added.
• August 2024: MoA&FW notification allowed conversion of overdue interest-only AIF loans into structured repayment schedules without losing the 3 % subvention, subject to NABARD certification.
• December 2024: PACS taken up as preferred borrowers for community storage and CHC (custom hiring) projects; the World Bank-supported PACS modernisation programme is now co-funded through AIF.
• March 2025: MoA&FW dashboard reported cumulative sanction crossing ₹50,000 crore across roughly 80,000 projects.
• 2025-26 Budget: Tenure for fresh sanctions extended; the scheme runs through FY 2032-33 for interest subvention on already-sanctioned loans.

Step-by-step application walk-through

1. Pre-qualify your project category on agriinfra.dac.gov.in using the eligibility wizard.
2. Engage a chartered accountant or empanelled DPR consultant for a bankable Detailed Project Report; the DPR must show 1.5 — 2.0 DSCR and clear repayment cash flow.
3. Shortlist a lender from the 38+ banks on AIF panel — SBI, Bank of Baroda, Canara, PNB, NABARD, NCDC, RRBs. Cooperative banks and NCDC are particularly active for PACS/FPO borrowers.
4. Register on the AIF portal with Aadhaar, PAN, Udyam and bank account; upload DPR, KYC, land/lease proof, FSSAI/GST registration as applicable.
5. On portal acknowledgement, the application is routed to the chosen lender. Lender appraisal typically takes 30 — 60 days for projects up to ₹2 crore.
6. On lender sanction, MoA&FW issues the interest-subvention eligibility certificate (ISEC). CGTMSE credit-guarantee fee is paid by GoI for loans ≤ ₹2 crore.
7. On first disbursement, the 3 % subvention is credited monthly to the loan account against the bank's claim through NABARD/SFAC; this directly reduces the EMI.

How rejections are appealed

Lender-level rejection appeals lie first with the lender headquarters; a parallel grievance can be filed on the AIF portal under the “Grievance” tab. Portal escalation reaches the State Project Monitoring Unit (SPMU) and, if unresolved in 30 days, the National Project Monitoring Unit (NPMU) at MoA&FW. The AIF helpdesk (011-23070326 / aifsupport@nic.in) acts as single window for technical-portal issues.

How AIF stacks with other schemes

AIF is the credit-cost layer; capital subsidies layer on top. A pack-house borrower can combine the 3 % AIF interest subvention with 35 % capital subsidy from MIDH for cold-chain projects, or with 35 % PMFME subsidy for primary-processing projects. SMAM-backed Custom Hiring Centres routinely combine 40 % SMAM capital grant with 3 % AIF interest subvention on the residual term-loan. FPOs registered under the 10,000 FPOs scheme tap NABARD/NCDC under AIF without collateral up to ₹2 crore. For animal husbandry projects, the parallel AHIDF uses the same 3 % subvention pattern but covers dairy, poultry and small-ruminant infrastructure.

Recent uptake statistics

As of March 2025, MoA&FW data placed cumulative sanctions at over ₹50,000 crore across roughly 80,000 projects, with disbursement of approximately ₹35,000 crore. State-wise, Andhra Pradesh, Madhya Pradesh, Karnataka, Punjab and Uttar Pradesh consistently lead uptake; the north-eastern states and J&K remain under-utilised relative to allocation. Exact district- wise sanction-vs-disbursement breakdown is published on the AIF dashboard but figures change weekly; for parliamentary-grade numbers use Lok Sabha unstarred questions tabled during Monsoon and Winter sessions.

Helpline

AIF helpdesk: 011-23070326 / aifsupport@nic.in.

Related

• PMFME — 35 % capital subsidy for micro food processors.
• 10,000 FPOs — FPOs are major AIF borrowers.
• AHIDF — same 3 % subvention pattern for animal husbandry infrastructure.