With reference to the Agriculture Infrastructure Fund AIF consider the following statements Statemen...........

Indian Economic System(BPSC) Agriculture

With reference to the Agriculture Infrastructure Fund (AIF) consider the following statements

Statement I: It is a fund created at every Panchayat level to support the tenant farmers in producing cash crops.
Statement II: All loans provided under AIF have interest subvention.

Which one of the following is correct in respect of the above statements?

Both Statement-I and Statement-II are correct, and Statement-II is the correct explanation for Statement-I.

Both Statement-I and Statement-II are correct, and Statement-II is not the correct explanation for Statement-I.

Statement-I is correct, but Statement-II is incorrect.

Statement-I is incorrect, but Statement-II is correct.

Statement 1 is incorrect. AIF provides 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.
Statement 2 is correct. All loans under AIF will have an interest subvention of 3% per annum up to a limit of Rs. 2 crores. This subvention will be available for a maximum period of seven years.

Agriculture Infrastructure Fund (AIF)

It is a Central Sector Scheme approved by the Union Cabinet in 2020.
It aims to provide a medium long-term debt financing facility for investment in viable projects for post-harvest management Infrastructure and community farming assets.
The duration of the Scheme shall be from FY2020 to FY2032.

Eligible beneficiaries include

Farmers, FPOs, PACS, Marketing Cooperative Societies, SHGs, Joint Liability Groups, Agri-entrepreneurs, Start-ups, and Central/State agency or Local Body sponsored Public Private Partnership Projects.
Under the scheme, Rs. 1 Lakh Crore will be provided by banks and financial institutions as loans.
The loans are provided with interest subvention of 3% per annum and credit guarantee coverage under CGTMSE for loans up to Rs. 2 crores.

Hence option 4th is correct.