Modi also released Rs 17,000 crore to almost 8.5 crore farmers under the sixth instalment of the PM-Kisan scheme.
The fund has been launched in a bid to make farmers self-reliant under PM Modi's clarion of an "Atmanirbhar Bharat" (self-reliant India).
Modi also interacted with farmers from Karnataka, Gujarat and Madhya Pradesh who are among the initial beneficiaires of the credit facility under this new fund through Primary Agricultural Credit Societies for creating post harvest facilities. Under this, Farmer Producer Organisation Schemes, self-help groups and agri-entrepreneurs can take loans to build infrastructure for post-harvest management and community farming assets, like cold storage, collection centres and processing units.
In a statement provided by the prime minister's office, PM-KISAN scheme had provided a direct cash benefit of over Rs 75,000 crore to more than 9.9 crore farmers and enabled them to fulfill their agricultural requirements and support their families.
Already, 11 of the 12 public sector banks have signed memorandum of agreement with the Agriculture Ministry.
Loans will be disbursed in four years starting with a sanction of Rs 10,000 crore in the current year and Rs 30,000 crore each in the next three financial years.
In case of FPOs, credit guarantee may be availed from the facility created under the FPO promotion scheme of the Department of Agriculture, Cooperation and Farmers Welfare (DACFW).
The Union Cabinet had approved the Central Sector Scheme of financing facility under the "Agriculture Infrastructure Fund" of Rs one lakh crore. "Rs 17,000 crore under the PM-Kisan Samman Nidhi has been deposited into the bank accounts of 8.5 crore farmers with a single click", Modi said during an online address. During the lockdown period, the scheme led to a release of almost Rs 22,000 crore to aid the farmers.
Making the announcements at a programme to launch the scheme through video-conference, the Prime Minister said, "Farmers are now ready to be entrepreneurs, in line with the vision of doubling farmers' income". Hal chhath is a festival dedicated to Balaram, the elder brother of Lord Krishna.