Why in news?
The Animal Husbandry Infrastructure Development Fund (AHIDF), launched to boost investment in dairy and meat processing, has been highlighted by the government for its progress in supporting entrepreneurs. Recent updates emphasise that the fund is helping Farmer Producer Organisations (FPOs), private companies and individuals expand animal husbandry enterprises across India.
Background
Announced in June 2020 as part of the Atmanirbhar Bharat package, AHIDF has an outlay of ₹15,000 crore. The objective is to develop modern infrastructure for dairy, meat processing, animal feed manufacturing and other allied activities. The scheme is implemented through the Department of Animal Husbandry and Dairying and the National Bank for Agriculture and Rural Development (NABARD), with participation from scheduled banks and financial institutions.
Scheme features
- Eligible beneficiaries: Farmer Producer Organisations, co‑operatives, Section 8 companies, Micro, Small and Medium Enterprises (MSMEs), private companies and individual entrepreneurs can avail financing.
- Financial support: Up to 90 percent of the total project cost can be funded through bank loans. Beneficiaries must contribute at least 10 percent margin money.
- Interest subvention: The government provides a 3 percent interest subsidy on loans for projects in non‑aspirational districts and 4 percent for those in aspirational districts. There is also a two‑year moratorium followed by a six‑year repayment period.
- Credit guarantee: To encourage lending, a credit guarantee fund covers 25 percent of the loan amount in case of default.
- Focus areas: Projects may include establishment of milk processing plants, chilling and cold chain facilities, meat processing units, rendering plants, animal waste to energy plants, and quality feed manufacturing units.
Benefits
- Modernising the livestock sector: Upgrading infrastructure improves hygiene, product quality and shelf life, making Indian dairy and meat products more competitive.
- Employment generation: The scheme is expected to create millions of direct and indirect jobs across rural and peri‑urban areas by fostering entrepreneurship in animal husbandry.
- Reducing wastage and malnutrition: Better processing and cold storage reduce post‑harvest losses and ensure that nutritious animal‑based foods reach consumers.
- Promoting exports: High‑quality infrastructure enables compliance with international standards, opening opportunities for exporting dairy products, meat and feed.
Conclusion
The Animal Husbandry Infrastructure Development Fund seeks to transform India’s livestock sector by attracting investment and adopting modern technology. Through concessional finance and risk mitigation measures, the scheme lowers the barriers for entrepreneurs while promoting food security, income generation and rural development.
Source: PIB
