The Animal Husbandry Infrastructure Development (AHIDF) has been approved for incentivizing investments by various stakeholders such as individual entrepreneurs, Private Companies, MSME’s, Farmer Producer Organizations (FPOs) and section 8 companies.
It aims to establish Dairy Processing and Value Addition Infrastructure, Meat Processing and Value Addition Infrastructure, and an Animal Feed Plant.
The following entities are eligible under AHIDF
Dairy Sector:
Establishment of new units and strengthening of existing dairy processing units with quality and hygienic milk processing facilities, packaging facilities or any other activities related to dairy processing.
Product Diversification:
The Eligible entities have the option to obtain a loan for establishing new units or enhancing existing manufacture units. This can include adding value to various milk products such as Ice Cream Units, Cheese Manufacturing units, Ultra High Temperature (UHT) Milk Processing Units with tetra packaging facilities, Flavored milk Manufacturing Units, Milk Powder Manufacturing units, Whey Powder Manufacturing Units.
Meat Sector:
Establishment of new meat processing unit and the enhancement of existing meat processing facilities for sheep, goats, poultry, pigs, and buffalo in rural, semi-urban, and urban areas.
A specialized facility for processing in meat on a large scale. Expansion into product diversification involves setting up new value addition facilities or enhancing existing ones for meat products such as sausage, nuggets, ham, salami, bacon or other meat items.
These facilities may serve as either an integral component of meat processing facilities or operate as standalone units for adding value to meat products.
Loan Amount:
Projects funded under the AHIDF can receive loans up to 90% of the estimated or actual project cost from the scheduled banks upon submission of feasible project proposals by qualified recipients.
Lending Rate of Interest:
Scheduled banks are responsible for the determining the lending rate of interest, ensuring that it does not surpass 200 basis points in addition to the External Benchmark Based Lending Rate (EBLR) for eligible entities with product costs within MSME defined limits.
Interest Subvention:
The department offers a 3% interest subvention to eligible entities.
Credit Guarantee:
Credit guarantee will only be provided to projects that are financially feasible and fall within the defined limits for MSMEs.
Maximum Repayment Period:
The maximum repayment period should not cross 10 years starting from the initial disbursement date, and this timeframe should include a 2-year moratorium for the repayment of the principle amount.
Animal Husbandry Infrastructure Development Fund.
The project under the AHIDF shall be eligible for loan up to 90% of the estimated project cost from the Scheduled bank based on the submission of viable projects by eligible beneficiaries.
Government entities and cooperatives are not eligible under AHIDF
The interest subvention will be provided only up to 8 years of repayment period from the date of disbursement. Beyond that no interest subvention will be provided.
No, there is no upper limit/ lower limit of the loan amount.
The Scheduled banks shall ensure that maximum re-payment period should not exceed 10 years from the date of first disbursement inclusive of moratorium of 2 years on repayment of principal
In case of Micro and Small, the beneficiary could be 10%.
For, Medium enterprises, the beneficiary could go up to 15%.
In other categories of enterprises, the beneficiary contribution could go up to 25%.
The Animal Husbandry Infrastructure Development Fund (AHIDF) aims to improve infrastructure for the livestock sector, enhancing the productivity, processing, and value chain of dairy, meat, and other animal products. The scheme supports investments in building facilities related to breeding, feeding, and health management, as well as improving cold chain infrastructure and processing units.
