AP AIF Interest Subvention FPP 4.0 (2024)

**Andhra Pradesh: Top-up on Agriculture Infrastructure Fund (AIF) under FPP 4.0**

Under the FPP 4.0 policy, the Andhra Pradesh government provides a top-up on the Agriculture Infrastructure Fund (AIF). The scheme addresses gaps in agricultural value chains, covering post-harvest management facilities, primary processing units, cold chains and logistics infrastructure.

Term loans sanctioned under the central Agriculture Infrastructure Fund (AIF) and other recognised Government of India schemes qualify for a 2% interest subvention. The subvention is capped at **₹1 crore (₹10,000,000)** per annum and runs for five years.

The support lowers the cost of borrowing for entrepreneurs, farmers and businesses investing in agricultural infrastructure. It is intended to encourage investment in the sector, raise farm-gate income, cut post-harvest losses, and support rural development and food security in Andhra Pradesh.

The processing of interest subvention applications generally follows the detailed procedures set out in the FPP 4.0 policy document. Applicants ought to consult the official policy document closely, since it contains the exact instructions, prescribed forms and submission guidelines. Broadly, an application requires the submission of a comprehensive project proposal, detailed financial projections, evidence of sanction under the Agriculture Infrastructure Fund (AIF) or another eligible GoI scheme, and documentation pertaining to the linked term loan, all of which must be filed with the relevant state authority — in most cases the Department of Industries or Agriculture. Once submitted, applications that qualify are put through a verification process to confirm they meet the policy's criteria, and only thereafter is the interest subvention disbursed.