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Punjab Leads AIF Scheme with 32,823 Projects, ₹7,050 Cr Disbursal, Achieves 96% Execution Rate

AgricultureEconomyPolityHIGH
Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
21 Mar 2026
~2 min
Source: Indian Express
Key Data:32,823 sanctioned projects₹7,050 crore disbursed96% disbursal rate3% interest subvention₹11,000 crore total investmentJuly 2020 launch
Bodies:Ministry of AgricultureKPMGState Bank of IndiaCGTMSE
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What This Article Covers

1.Punjab leads in AIF scheme performance with 32,823 sanctioned projects and ₹7,050 crore disbursed, surpassing major agricultural states.

2.The state demonstrates exceptional execution efficiency with a 96% disbursal rate, the highest in the country, and attracts over ₹11,000 crore in total investment.

3.As a non-NDA state topping a central scheme, it serves as a model for cooperative federalism and effective state-level implementation of national agricultural policies.

The Big Picture
Prelims · HighMains · Medium

Punjab has emerged as the top performer under the Agriculture Infrastructure Fund (AIF) scheme, sanctioned under the Union government in 2020. This case study is crucial for understanding the success factors of centrally sponsored schemes, federal cooperation, and agricultural infrastructure development, which are common themes in UPSC Mains GS-III and State PSC exams.

Exam Lens

Quick Exam Facts From News

Top State (Projects)Punjab (32,823 sanctioned)
Disbursal Amount₹7,050 crore
Execution Rate96% (Highest nationally)
Scheme LaunchJuly 2020
Top District (Projects)Ludhiana (3,650 projects)
AIF Interest Subvention3% for loans up to ₹2 crore
Nodal Agency (Punjab)Punjab Horticulture Department

1-Minute Revision

  • ›Top State (Projects): Punjab (32,823 sanctioned)
  • ›Disbursal Amount: ₹7,050 crore
  • ›Target this Data: 32,823 sanctioned projects in Punjab under AIF (as of Feb 2026).
  • ›Target this Nodal Body: Punjab Horticulture Department is the nodal agency for AIF in the state.
  • ›Target this Legal Point: AIF offers a 3% interest subvention for loans up to ₹2 crore for 7 years.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which department in Punjab is the nodal agency for implementing the Agriculture Infrastructure Fund (AIF) scheme?

Q2Statement-basedHard

Consider the following statements regarding Punjab's performance under the Agriculture Infrastructure Fund (AIF) scheme:

1. Punjab has the highest number of sanctioned projects and the highest disbursal rate in the country.

2. Punjab is the only state among the top five AIF performers that is governed by a non-NDA party.

3. The AIF scheme provides a credit guarantee through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the news, what is the interest subvention provided under the Agriculture Infrastructure Fund (AIF) scheme for eligible loans up to ₹2 crore?

Q4Application/ImpactMedium

What is the primary objective of the Agriculture Infrastructure Fund (AIF) scheme, as mentioned in the article?

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