Head Office

Agriculture and Rural Circular No.

Business Department CHO/ARBD/10 /2020-21
10, B T M Sarani, UCO BANK Dated: 13.08.2020
Kolkata - 700 001 Honours Your Trust

All Branches / Offices In India

Sub: New Scheme for financing - Agriculfure Infrastructure Fund.

Gist & Action Points

The scheme aims at financing medium-long term debt financing facility for
investment in viable projects for post-harvest management infrastructure
and community farming assets through incentives and financial support.

• This investment will facilitate setting up and modernization of key elements

of the value chain including post harvest management projects like supply
chain services

The role of infrastructure Is crucial for agriculture development and for taking the production
dynamics to the next level. It is only through the infrastructure development, especially at post
harvest stage that the produce can be value added and optimally utilized ensuring fair deal for
the farmers and that can address the vagaries of nature, the regional disparities and realization of
full potential of our limited land resource.

In view of above, the Hon'ble Finance Minister announced on 15.05.2020 Rs.l lakh crore Agri
Infrastructure Fund for farm-gate infrastructure for farmers, which will provide for funding
Agriculture Infrastructure Projects at farm-gate & aggregation points (Primary Agricultural
Cooperative Societies, Farmers Producer Organizations, Agriculture entrepreneurs, Start-ups etc.)
and financially viable Post Harvest Managernent infrastructure.

Accordingly, DAC8.FW (Department of Agriculture Cooperation 8. Farmer Welfare] has formulated

the Central Sector Scheme to mobilize a medium to long term debt financing facility for
investment in viable projects relating to post-harvest management Infrastructure and community
farming assets through incentives and financial support.

Salient Features of the Scheme:

SI. Parameter Details

No.

1. Scheme To extend Financial Assistance to Primary Agriculture Credit

Societies (PACS), Marketir;)ap;7:CQoperative Societies, Farmer
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SI. Parameter Details
No.

Producers Organisations (FPOs), Self Help

Group (SHG), Farmers, Joint Liability Groups (JLG), Multipurpose
Cooperative Societies, Agri-entrepreneurs, Startups and
Central/State agency or Local Body sponsored Public Private
Partnership Projects.

PACS who have adopted digitization for handling its operations will
be given preference under this scheme.

Scheme Code LA812

& RBC Code
12010-15017

Type of Term Loan

finance &
Priority Sector- Agriculture Infrastructure
Priority Sector
Classification

Eligible Projects The scheme will facilitate setting up and modernization of key
elements of the value chain including

(A)Post Harvest Management Projects like:

(i) Supply chain services including e-marketing platforms
(ii) Warehouses
(iii) Silos
(iv) Pack houses
(v) Assaying units
(vi) Sorting & grading units
(vii) Cold chains
(viii) Logistics facilities
(ix) Primary processing centers
(x) Ripening Chambers

(B) Viable projects for building community farming assets

including:
(i) Organic inputs production
(ii) Bio stimulant production units
(iii) Infrastructure for smart and precision agriculture
(iv) Projects identified for providing supply chain
infrastructure for clusters of crops including export
clusters
(v) Projects promoted by Central/State/Local
Governments or their agencies under PPP for building
community farming assets or post harvest
management projects.
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"Si. Q
SI. Parameter Details
No.

5. Maximum As per priority sector guidelines of RBI on Agriculture Rs.lOO Crore

Quantum per borrower from the entire banking system can only be the
maximum quantum under agriculture.

6. Margin Minimum 10%. in case the loan qualifies for capifol subsidy under
any present or future scheme of Central/State government then
that capital subsidy shall be considered as promoters' contribution.
However a minimum of 10% of project cost shall be mandatory as
promoters' contribution.
7. Security
1) For Loan up to Rs.2 Crore
(i) Hypothecation of assets created out of bank finance.
(ii) CGTMSE Coverage.
(iii) Charge/Extension of charge of Landed property (If
available as per CGTMSE definition of primary security)
(iv) CGTMSE Fee will be borne by the Government.
(v) Personal guarantee of the promoters / partners /
directors.
2) For Loan above Rs.2 Crore- In addition to the aforesaid
securities, collateral security shall be obtained as per the
satisfaction of sanctioning authority. However, Sanctioning
authority must ensure that with the tangible security, guarantee
cover, liquid security etc Bank's interest is well protected.
8. Insurance The assets created out of bank finance should be comprehensively
insured with Bank Clause and a copy of the insurance policy should
be kept in Bank's records.

9. Repayment The entire tenure of the loan shall not exceed 10 years, including
Period moratorium. Moratorium period can vary from minimum 6 months
to 2 Years from the date of first disbursement. Moratorium and
tenure of loan must be decided on the basis of implementation
period & life cycle of the project respectively. However interest shall
be payable as and when charged.

10. Rate of Interest 1. Loan up to Rs.2 Crore - One Year MCLR +1%, subject to maximum
9%*

2. Loan above Rs.2 Crore - Interest rate will be as under:

a) For Loan amount up to Rs.2 Crore - One Year MCLR +1%,subject to

maximum 9%*

&

b) For Loan amount above Rs. 2 Crore) - As per credit rating. Which Is
presently as under:
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SI. Parameter Details
No.

Internal Rating MCLR Spread

UCOl 2.15%

UC0 2 2.40%

UC0 3 1 Year MCLR 2.40%

UC0 4 2.90%

Below UCO 4 3,40%

(The differential rote of Interest is Inbuilt In the system, but for the port of
loon where Interest rate Is applicable as per rating. Branch user has to
change the same In INTTM menu as per credit rating.)

*lf at any point of time In future "1 Yr MCLR +1%" exceeds 9%",
Branch must ensure that the rate of interest charged in the
account up to the amount of Rs.2 crore is 9% only.

14. Lending As per delegated lending powers

Powers

15. Penal Interest As per extant guidelines of the bank from time to time.

16. Processing As per extant guidelines of the bank from time to time.
Charges

17. Renewal As per extant guidelines of the bank from time to time.
Charges

18. Documentatio As per extant guidelines of the bank from time to time.
n Charges

19. Inspection As per extant guidelines of the bonk from time to time.
Charges

20. Other 1. The Scheme will be operational from 2020-21 to 2029-30.

important 2. All loans under this financing facility will have interest
conditions
subvention of 3% per annum up to a limit of Rs.2 crore. This
subvention will be available for a maximum period of 7 years.
In case of loans beyond Rs.2 crore, then interest subvention
will be limited upto 2 crore. The extent and percentage of
funding to private entrepreneurs out of the total financing
faciiity may be fixed by the National Monitoring Committee.
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SI. Parameter Details
No.

The subvention will be allowed till the account is under

standard category. However, on upgradation of the account
to standard category, such upgraded account will be
eligible for interest subvention from retrospective effect i.e.
subvention will also be available for the period account
remained NPA.
3. 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 upto 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 DACFW (Department of
Agriculture Cooperation & Farmer Welfare).
4. Farmers Welfare Programme Implementation Society under
DACFW (Department of Agriculture Cooperation & Farmer
Welfare) will provide Project Monitoring Unit (PMU) support to
the scheme at the central level and state PMUs of PM KISAN
at state level. Services of knowledge partners will be
engaged to identify clusters including export clusters and
gaps in supply chains to target projects and prepare viable
project reports to support the beneficiaries.
5. Project reports with indicative unit costs will be prepared by
Central and State PMUs for guidance of beneficiaries and
lending entities. Such project reoorts shall be available on
online platform
6. Financing facility of Rs.l lac Crore will be provided under the
scheme. Disbursement in four years starting with sanction of
Rs.lOOOO Crore in the first year and Rs.30000 Crore each in
next three financial years.
7. The National, State and District Level Monitoring Committees
will be there at Government level to ensure real-time
monitoring and effective feed-back about the
implementation of the scheme. The committees will be set
up as per Annexure-A.
All assets created under this financing facility shall be geo-
tagged. The District Monitoring Committee and respective
lending entity (branch) shall ensure that updated information
on such geo tagged assets is available on the online portal
8. District Level Monitoring Committee (DLMC) will identify the
beneficiaries, to ensure viability of the project and prepare
viable project reports to support the beneficiaries in
collaboration with PMU.
Therefore Branches and Zonal Offices are adviced to work in
close consultation with NABARD and Monitoring Committees,
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 Parameter Details

PAAUs for scouting more and more viable proposals under the
scheme.

Branches & Offices ore advised to take a careful note of the above guidelines and act
accordingly. We firmly believe that with the New Scheme the field level functionaries would be
able to scout more proposals under agriculture credit.

\(UP^
(Vljay Kumar)
General Manager
Agri & Rural Business, RRB

"ONE TEAM ONE DREAM "

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 Annexure-A
Monitoring framework

(i) National level Monitoring Committee(NLMC)

Composition >

Following will be the Members and Chairman of the NLMC:-

a. Secretary (DAG&FVV)(Chairman)
b. MD SFAC
c. MD.NCDC
d. Special Secretary/Additional Secretary and FA {DAC&FW)
e. Additional Secretary DFS
f. Additional Secretary (DAC&FW,Gol)
g. Chairman, NABARD or his representative
h. Principal Secretary-State Government (s)- Four States by rotation
i. State Nodal Officers of four States (by rotation)
j. Joint Secretary (DAC&FW) and CEO of Farmers Welfare Programme Implementation
Society- Member Secretary

Functions:-

1. National level Monitoring Committee (NLMC) will guide and steer the implementation of
the project. It will approve the guidelines for implementation of the project.

2. National level Implementation Committee (NLIC) will examine and recommend the
guidelines for implementation of the project. It also will ensure and review the implementation
of the scheme as per approved guidelines by the National level Monitoring Committee
(NLMC)

(ii) State level Monitoring Committee

Composition:'

Following will be Members and Chairman of the SLMC

a. Chief Secretary -Chairman

b. Agriculture Production Commissioner/Principal Secretary Agriculture
c. Principal Secretary (Cooperation)
d. Registrar of Cooperative Societies (RCS)
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e. Chief General Manager(CGM), NABARD
f. Regional Director, NCDC
g-
Officers nominated by State (not more than three).
h. SLBC Convenor.
I. state Nodal Officer- Member Secretary.
Functions:-

1. state level Monitorirrg Committee (SLMC) will implement the NIMC guidelines at the
state level and provide feedback to NIMG.
2 It will also guide and steer the implementation of the scheme in the state.
3. It will also examine and approve the selected list of beneficiaries/ projects for inclusion
in the scheme in consultation with DLMC
4, It will set the targets as per OOMF format and review the progress regularly
(iii) District Level Monitoring Committee
rnmposition:-

Following will be Members and Chairman of the DLMC.-

ni«?trirt Co
Disthct lector -
Collector unairmaii
- Chairman .
a.

b. Chief Executive Officer of District Panchayat/GDO- Vice Chairman

District Officer of Agriculture .
C.

d. District Registrar Officers nominated Cooperative Societies

e. Officers nominated by State (not more than three)
f. Lead District Manager of DLBC
9-
District Manager NABARD- Member Secretary
Functions:-

1 District ievel Monitoring Committee (DLMC) The DLMC will be the first line of
implementation and monitoring system within the overall framework.
2. It wMi identify the beneficiaries, to ensure viability of the project and prepare viable
project reports to support the beneficiaries in collaboration with PMU.
3. It will also examine the proposal and recommend to SLMC for consideration.
4. DLMC will set targets in consultation with SLMC as per OOMF format and monitor
the progress closely with the support of PMU.
5. DLMC will maintain the Dashboard in collaboration with PMU.
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6. It will be responsible for the smooth Implementation of the scheme and resolve any
issues at the district level, in the process of sorting out Implementation issues the
Committee would be supported by the district administration wherever required.

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