Prime Minister Narendra Modi will launch a Rs 1 lakh financing facility under the government's Agriculture Infrastructure Fund through video-conferencing on Sunday, August 9.
PM Modi will also release the sixth installment of Rs 17,000 crore funds to 8.5 crore farmers under the PM-KISAN scheme, according to an official statement on Saturday.
The event, which will be held virtually, will be watched by lakhs of farmers and cooperatives across the country. Union Agriculture Minister Narendra Singh Tomar will also be present at the event.
The Centre had in July approved the creation of an agri-infra fund with a corpus of Rs 1 lakh crore in order to extend subsidised credit for farm infrastructure projects.
The Union Cabinet had approved the Central Sector Scheme of financing facility under the "Agriculture Infrastructure Fund" of Rs one lakh crore.
The fund will catalyse the creation of post-harvest management infrastructure and community farming assets such as cold storage, collection centres, and processing units, the statement pointed out.
These assets will enable farmers to get greater value for their produce as they will be able to store and sell at higher prices, reduce wastage and increase processing and value addition, it said.
Rs 1 lakh crore will be sanctioned under the financing facility in partnership with multiple lending institutions.
Eleven of the 12 public sector banks have already signed MoUs with the Department of Agriculture. A three per cent interest subvention and credit guarantee of up to Rs 2 crore will be provided to the beneficiaries to increase the viability of these projects.
The Pradhan Mantri Kisan Samman Nidhi Yojana (PM-KISAN) scheme, launched on December 1 2018, has provided a direct cash benefit of over Rs 75,000 crore to more than 9.9 crore farmers, it said.
This has enabled them to fulfill their agricultural requirements and support their families.
The scheme has also been instrumental in supporting farmers during the COVID-19 pandemic, through the release of nearly Rs 22,000 crore.
(With inputs from PTI)