Animal Husbandry Infrastructure Development Fund (AHIDF)

Government of India · Department of Animal Husbandry & Dairying (Ministry of Fisheries, Animal Husbandry & Dairying)

A ₹15,000 crore credit-linked incentive fund under the AtmaNirbhar Bharat Abhiyan, offering bank loans of up to 90% of project cost plus 3% interest subvention to build dairy, meat, and animal feed processing infrastructure

The Prime Minister's AtmaNirbhar Bharat Abhiyan stimulus package announced a ₹15,000 crore Animal Husbandry Infrastructure Development Fund (AHIDF), approved for incentivising investment by individual entrepreneurs, private companies, MSMEs, Farmer Producer Organisations (FPOs), and Section 8 companies to establish dairy processing and value-addition infrastructure, meat processing and value-addition infrastructure, and animal feed plants. The scheme is implemented across all States and Union Territories, with objectives to:

• •Increase milk and meat processing capacity and product diversification, giving unorganised rural producers greater access to the organised market.
• •Make available increased price realisation for the producer, and quality milk and meat products for the domestic consumer.
• •Fulfil the protein-enriched quality food requirement of the country's growing population, and help address child malnutrition.
• •Develop entrepreneurship, generate employment, and promote exports in the milk and meat sector.
• •Make quality concentrated animal feed available at affordable prices for cattle, buffalo, sheep, goat, pig, and poultry.

Eligible Entities (EEs)

• •Farmer Producer Organisations (FPOs)
• •Private companies
• •Individual entrepreneurs
• •Section 8 companies
• •Micro, Small, and Medium Enterprises (MSMEs)

Eligible Activities

A. Loan & Beneficiary Contribution

Genuine cost escalation (natural calamity, technical compulsions, change in Schedule of Rates, other unavoidable circumstances) may be considered for loan enhancement, within a reasonable time not exceeding 2 years from project approval.

B. Interest Subvention & Lending Rate

• •Interest subvention: 3% for all Eligible Entities.
• •Lending rate: for EEs within MSME-defined project-cost ceilings, the Scheduled Bank's rate must not exceed 200 basis points plus the External Benchmark-based Lending Rate (EBLR). For other projects, banks may apply commercial interest rates.
• •DAHD pays interest subvention directly to the Scheduled Bank — upfront for the first year on the bank's request, and from year 2 onward based on the non-NPA borrower entitlement claimed annually in advance.
• •No interest subvention for a loan sanctioned toward procurement of land, working capital, old machinery, or vehicles for personal use.
• •An Eligible Entity in default of loan repayment in any given year forfeits that year's interest subvention.

C. Credit Guarantee Fund

• •A ₹750 crore Credit Guarantee Fund is established and managed by NABARD, funded by DAHD at ₹75 crore per year over 10 years.
• •Guarantee coverage is available only for viable projects within MSME-defined ceilings, up to 25% of the credit facility extended to the borrower.
• •Entities outside MSME norms are not eligible for the Credit Guarantee, but remain eligible for interest subvention.

• •Step 1 — DPR preparation: The Eligible Entity prepares a detailed Viable Project Report, identifying a suitable site, conducting engineering/socio-economic surveys, and planning/designing facilities (with model studies where required). Technical assistance is available from the State Animal Husbandry Department or the Udyami Mitra Portal's list of handholding agencies.
• •Step 2 — Statutory clearances: The EE obtains all necessary clearances, permits, and licences at its own cost. The State Animal Husbandry Department operates a single-window system to facilitate these clearances and handhold the EE.
• •Step 3 — Submission via Udyami Mitra Portal: The EE submits the complete DPR through the "Udyami Mitra" portal developed by SIDBI.
• •Step 4 — Bank appraisal & sanction: The Scheduled Bank appraises and sanctions the loan based on project viability, then forwards the application to DAHD for interest subvention approval via the online mechanism, using the form at Annexure II.
• •Step 5 — Project Management Agency (PMA) scrutiny: The PMA (outsourced by DAHD) scrutinises, evaluates, and appraises the sanctioned proposal before placing it before the Project Approval Committee (PAC).
• •Step 6 — PAC/PSC approval: The PAC approves interest subvention for projects up to ₹50 crore; projects above ₹50 crore are recommended by PAC and approved by the Project Sanctioning Committee (PSC). Both committees also recommend Credit Guarantee coverage for MSME-eligible projects.
• •Step 7 — Disbursement: The Scheduled Bank disburses the loan; the full ₹15,000 crore fund is to be disbursed within 3 years starting 2020-21.
• •Step 8 — Repayment & monitoring: The EE repays as per the sanctioned schedule; PMA collects quarterly physical/financial progress from EEs and banks, placing reports before the PSC for review and any mid-term corrections.

PSC composition includes Secretary (DAHD) as Chairperson, a NABARD representative (CGM-level or above), the DAHD Financial Advisor, representatives of the Department of Financial Services and Ministry of Food Processing (Joint Secretary level), Joint Secretary (Cattle & Dairy Development), the concerned State Secretary, a senior bank representative, and Joint Secretary (NLM) as Member Convener.