Cabinet Extends Animal Husbandry Infrastructure Development Fund (AHIDF)
- 03 Feb 2024
On 1st February, 2024, the Union Cabinet gave the nod for the extension of the Animal Husbandry Infrastructure Development Fund (AHIDF).
Key Points
- Interest Subvention and Eligible Entities: The Government of India will provide a 3% interest subvention for eight years, including a two-year moratorium, for loans up to 90% from scheduled banks, National Cooperative Development Corporation (NCDC), NABARD, and NDDB.
- Eligible entities encompass individuals, private companies, FPOs, MSMEs, and Section 8 companies. The updated scheme now allows Dairy Cooperatives to benefit from modernization and the strengthening of dairy plants.
- Credit Guarantee and Impact So Far: The government will extend credit guarantees to MSMEs and Dairy Cooperatives, covering up to 25% of the credit borrowed from the Credit Guarantee Fund of Rs.750 crore.
- AHIDF has already made a substantial impact, adding significant capacities in milk, feed, and meat processing since its inception.
- The scheme has increased processing capacity by 2-4% in the dairy, meat, and animal feed sectors.
- Diverse Investment Opportunities: The inclusion of new activities like technologically assisted breed multiplication farms, strengthening of veterinary drugs and vaccine units, and animal waste to wealth management enhances the scheme's potential for upgrading infrastructure in the Livestock sector.
- Employment Generation and Livestock Sector Growth: AHIDF is envisioned to generate employment directly and indirectly for approximately 35 lakh people through entrepreneurship development.
- The scheme aligns with the goal of doubling farmers' income and promotes private sector investment, incorporating the latest technologies for processing and value addition.
- The investments are expected to boost productivity, increase farmers' income, and contribute to the nation's economy by fostering the export of Livestock products.
