Cabinet approves decision letting APMCs borrow from Rs 1 lakh crore agri fund; Coconut Board chairman to be non-executive

The Union Cabinet on Friday approved changes into the Rs 1 lakh crore Agriculture Infrastructure Fund announced in December, now allowing even APMCs to seek funds for infrastructure development in their yards as well as allowing state agencies as well as federations and cooperatives of farmers and self help groups to take up more such projects. The Cabinet also said that the Central Government will soon bring amendments into the Coconut Board Act to increase the number of permanent member states to six while adding the post of CEO as well as make the board chairman a non-executive one. The decision were annouced in first Cabinet briefing held after the Narendra Modi government carried out a highly publicised epxansion exercise on Wednesday, The expansion saw the induction of 36 new ministers of Cabinet as well as Minister of State ranks, reshuffle of portfolios, as well as promotion of seven ministers to the Cabinet rank. The expansion also saw the removal of 12 ministers including top BJP leaders such as Harsh Vardhan, Ravi Shankar Prasad, Prakash Javadekar, among others. [caption id=“attachment_9098381” align=“alignnone” width=“640”] File photo of Union agriculture minister Narendra Singh Tomar[/caption] APMCs can seek funds from Agriculture Infrastructure Fund Addressing reporters on Thursday, Union agriculture minister Narendra Singh Tomar said that the Centre will allow APMCs to use funds from the Rs 1 lakh crore allocated under the Agriculture Infrastructure Fund to develop infrastructure related projects. “It was earlier said that APMCs would be strengthened. Efforts will be made to provide more resources to the APMCs. Now, a decision has been taken that Rs 1 lakh crore to Agriculture Infrastructure Fund allocated under Atmanirbhar Bharat scheme can be used by APMCs,” Tomar said. Here are details of the decisions announced by the Union agriculture minister:

• Eligibility has now been extended to state agencies/APMCs, national and state federations of cooperatives, federations of farmers producers organisations (FPOs) and federations of self-help groups (SHGs).
• At present, interest subvention for a loan upto Rs 2 crore in one location is eligible under the scheme. In case, one eligible entity puts up projects in different locations then all such projects will be now be eligible for interest subvention for loan upto Rs 2 crore. However, for a private sector entity there will be a limit of a maximum of 25 such projects.
• This limitation of 25 projects will not be applicable to state agencies, national and state federations of cooperatives, federations of FPOs and federation of SHGs. Location will mean physical boundary of a village or town having a distinct LGD (Local Government Directory) code. Each of such projects should be in a location having a separate LGD code.
• For APMCs, interest subvention for a loan upto Rs 2 crore will be provided for each project of different infrastructure types, eg, cold storage, sorting, grading and assaying units, silos, etc, within the same market yard.
• The power has been delegated to the Union Minister of Agriculture and Farmers Welfare to make necessary changes with regard to addition or deletion of beneficiary in such a manner so that basic spirit of the scheme is not altered.
• The period of financial facility has been extended from 4 to 6 years upto 2025-26 and overall period of the scheme has been extended from 10 to 13 upto 2032-33.

The modifications in the Scheme will help to achieve a multiplier effect in generating investments while ensuring that the benefits reach small and marginal farmers, the PIB said on Thursday. Coconut Board chairman to be non-executive; Gujarat AP inducted as permanent members The Union Cabinet also approved the proposal of the Department of Agriculture, Cooperation and Farmers Welfare to make the post of Coconut Development Board chiarman as non-executive one. “It will be beneficial to coconut growers at large,” the PIB said in a statement. Union minister Tomar said that the Centre is bringing amendments to the Coconut Development Board Act, 1979, to increase coconut farming in the country. “To increase coconut farming, we’re amending the Coconut Development Board Act, 1979. The Coconut Board president will be a non-official person. He will be from the farmers’ community, who knows and understands field work. We are also creating a post for a CEO,” he added. Tomar also announced that the number of members appointed by the Centre will be increased to six, allowing for more representation by Gujarat and Andhra Pradesh in the board.