Animal Husbandry Infrastructure Development Fund (AHIDF)

Context:

Approved by Cabinet in pursuance of recently announced Atma Nirbhar Bharat Abhiyan stimulus package.

 Overview:

• Size of the fund is 15000 crore.
• This Fund will incentivise infrastructure investments in dairy, meat processing and animal feed plants.

Eligibility, funding and implementation:

• Who is eligible? Farmer Producer Organizations (FPOs), MSMEs, Section 8 Companies, Private Companies and individual entrepreneur with only 10% margin money contribution by them.
• Rest of the Funds: The balance 90% would be the loan component to be made available to them by scheduled banks.
• GOI will provide 3% interest subvention to eligible beneficiaries.
• There will be 2 years moratorium period for repayment of the loan with 6 years repayment period thereafter.

Credit Guarantee Fund:

• A Credit Guarantee Fund of Rs. 750 crore will also be set up.
• It is to be managed by NABARDwhich would provide credit guarantee to the projects which are covered under the MSME defined ceilings.
• Guarantee Coverage would be up to 25% of the Credit facility of the borrower.

Significance:

• This ensures the availability of capital to meet upfront investment required for these projects.
• It also helps enhance overall returns/pay back for investors.
• Such investments in processing and value addition infrastructure by eligible beneficiaries would also promote exports by adding to farmers’ incomes.