Animal Husbandry Infrastructure Development Fund (AHIDF)

The Animal Husbandry Infrastructure Development (AHIDF) has been approved for incentivizing investments by individual entrepreneurs, private companies, MSME, Farmers Producers Organizations (FPOs) and Section 8 companies to establish (i) the dairy processing and value addition infrastructure, (ii) meat processing and value addition infrastructure and (iii) Animal Feed Plant.

Objectives

• To help increasing of milk and meat processing capacity and product diversification thereby providing greater access for unorganized rural milk and meat producers to organized milk and meat market.
• To make available increased price realization for the producer.
• To make available quality milk and meat products for the domestic consumer.
• To fulfill the objective of protein enriched quality food requirement of the growing population of the country and prevent malnutrition in one of the highest malnourished children population in the world.
• Develop enterpreneurship and generate employment.
• To promote exports and increase the export contribution in the milk and meat sector.
• To make available quality concentrated animals feed to the cattle, buffalo, sheep, goat, pig and poultry to provide balanced ration at affordable prices.

Who are eligible under AHIDF?  

The following entities will be eligible under AHIDF

• Farmer Producer Organization (FPO)
• Private companies
• Individual entrepreneurs
• Section 8 companies
• Micro Small and Medium Enterprises 

Activities covered

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 can also avail loan for establishment of new units and strengthening of existing manufacturing units for value addition of the following milk products: Ice Cream unit, Cheese manufacturing unit, Ultra High Temperature (UHT) Milk processing unit with tetra packaging facilities, Flavored Milk manufacturing unit, Milk Powder manufacturing unit, Whey powder manufacturing unit, Any other milk products and value addition manufacturing unit.

Meat Sector

• Establishment of new meat processing unit and strengthening of existing meat processing facilities for sheep/goat/ poultry/pig/buffalo in rural, semi-urban and urban areas.
• Large scale integrated meat processing facilities/ plant/ unit.  
• Product Diversification: Establishment of new or strengthening of existing value addition facilities for meat products like Sausage, nuggets, ham, salami, bacon or any other meat products. These facilities could either be integral part of meat processing units or Standalone meat value addition unit.  

Animal feed

• Establishment of Animal Feed manufacturing and strengthening of existing units/ plant of the following categories: Establishment of Mini, Medium and Large Animal Feed Plant, Total Mixed Ration Block Making Unit, By pass protein unit, Mineral Mixture Plant, Enrich Silage making unit, Animal Feed Testing Laboratory and any other activities related to animal feed manufacturing. 

Benefits

• Loan amount : The project under the AHIDF shall be eligible for loan up to 90% of the estimated/ actual project cost from the Scheduled Bank based on submission of viable projects by eligible beneficiaries.  The beneficiary contribution in case of Micro and Small units as per MSME defined ceiling could be 10% while in case of Medium Enterprises as per defined MSME ceiling, beneficiary contribution could go up to 15%. The beneficiary contribution in other categories of enterprises could go up to 25%.  
• Lending rate of interest : The lending rate of interest is to be fixed by scheduled banks and it should not exceed at 200 basis points plus External Bench Mark Based Lending Rate (EBLR) for the Eligible Entities whose project cost are falling within MSME defined ceilings. However, rate of interest to be fixed by scheduled banks for other project could be based on commercial interest rate of Banks.
• Interest subvention : Interest subvention of 3% is provided to all eligible entities by the Department. However, Interest subvention will not be allowed for the loan sanctioned for procurement of land, working capital, old machineries and vehicle for personal use. The Eligible Entities will not be able to get the interest subvention, if the Eligible Entities is defaulter of re-payment of loan amount in any given year.
• Credit guarantee : Credit guarantee will be provided only for those projects which are viable and are covered under MSME defined ceilings and the guarantee coverage would be up to 25% of the credit facility available to the borrower.  Credit Guarantee will not be provided to other beneficiaries who are not covered under MSME norms, however, those EEs will be eligible to get interest subvention. 
• Maximum repayment period : 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. 

For detailed scheme guidelines, click here.

Source : Department of Animal Husbandry & Dairying