Guidelines for Animal Husbandry Infrastructure Development Fund

• Union Minister of Animal Husbandry launched the Implementation Guidelines for Animal Husbandry Infrastructure Development Fund (AHIDF), the first type of scheme for private sector.


• The INR 15,000 crore AHIDF and the interest subvention scheme for private investors will ensure availability of capital to meet upfront investment required for these projects and also help enhance overall returns/ payback for investors.

• The eligible beneficiaries under the Scheme would be Farmer Producer Organizations (FPOs), MSMEs, Section 8 Companies, Private Companies and individual entrepreneurs 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.

• The beneficiaries intending to invest for establishing dairy and meat processing and value addition infrastructure or strengthening of the existing infrastructure can apply for loan in the scheduled bank through “Udyami Mitra” portal of SIDBI.


Mains Paper 3: Economy

Prelims level: Animal Husbandry Infrastructure Development Fund

Mains level: Significance of the Animal Husbandry Infrastructure Development Fund

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