Animal Husbandry Infrastructure Development Fund

• The Cabinet Committee on Economic Affairs has approved setting up of Animal Husbandry Infrastructure Development Fund (AHIDF) worth Rs. 15000 crore.


• AHIDF would facilitate much needed incentivisation of investments in establishment of infrastructure for dairy and meat processing and value addition infrastructure and establishment of animal feed plant in the private sector.

• The eligible beneficiaries under the Scheme would be Farmer Producer Organizations (FPOs), MSMEs, Section 8 Companies, Private Companies and individual entrepreneur with minimum 10% margin money contribution by them.

• The balance 90% would be the loan component to be made available by scheduled banks.

• Government of India will provide 3% interest subvention to eligible beneficiaries. There will be 2 years moratorium period for principal loan amount and 6 years repayment period thereafter.

• Government of India would also set up Credit Guarantee Fund of Rs. 750 crore to be managed by NABARD.

• Credit guarantee would be provided to those sanctioned projects which are covered under MSME defined ceilings.

• Guarantee Coverage would be upto 25% of Credit facility of borrower.


Mains Paper 3: Economy

Prelims level: Animal Husbandry Infrastructure Development Fund

Mains level: Highlights the importance of the Animal Husbandry Infrastructure Development Fund

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