Animal Husbandry Infrastructure Development Fund (AHIDF)

Dairy and meat processing is a vital sector that contributes to India’s economy. To support this sector, the Central Government, in cooperation with Atma Nirbhar Bharat Abhiyan, has launched the Animal Husbandry Infrastructure Development Fund scheme.

This scheme aims to improve the scope of investments in infrastructure and animal feed plants in the private sector. Keep scrolling to learn about AHIDF in detail.

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What Is an Animal Husbandry Infrastructure Development Fund?

The Animal Husbandry Infrastructure Development Fund or AHIDF was launched by the Ministry of Animal Husbandry, Dairying and Fisheries.

Under this scheme, the Government approved ₹15,000 Crores to encourage MSMEs, private companies, entrepreneurs, Farmers Producers Organisation and Section 8 companies to invest in animal feed plants and meat processing.

The Animal Husbandry projects can avail a loan of up to 90% of the total cost from scheduled banks under RBI. Additionally, the Government offers a 3% subsidy on these loans. This makes the complete ordeal feasible and lucrative for business.

Let’s learn the objectives of AHIDF to understand this scheme better.

What Are the Objectives of the Animal Husbandry Infrastructure Development Fund?

Following are the objectives of the Animal Husbandry Infrastructure Development Fund scheme.

This scheme aims to support new entrepreneurs and boost employment.
It promotes exports in the milk and meat-related sector.
AHIDF seeks to boost the dairy and meat refining capacity in India.
To supply enough dairy products to domestic consumers and the children of the country.
It plans to reach sufficient animal feed to buffaloes, pigs, sheep, goats, poultry animals, etc., at an affordable cost.
This scheme aims to increase the income of individuals working in the Animal Husbandry sector.

Let’s check the eligibility parameters set against this lucrative scheme. Having a clear idea about the eligibility criteria will help streamline the AHIDF loan application.

What Are the Eligibility Criteria for Animal Husbandry Infrastructure Development Fund?

Individuals should fall in any of the mentioned categories to be eligible for the AHIDF scheme.

Farmer Producer Organisation
Individual entrepreneurs
Micro Small and Medium Enterprises
Private companies
Section 8 companies

Eligible applicants should be associated with any of mentioned sectors to avail credit under the AHIDF scheme.

Entrepreneurs or companies engaged in dairy processing are eligible for the benefit of the AHIDF.
Traders can avail the loan for the establishment of dairy units and reinforcement of manufacturing units.
Industries producing dairy products such as ice cream, milk powder, yoghurt, etc., are eligible for this scheme.
Individuals who plan to establish meat processing and related service.
Industries dealing with animal feed manufacturing.

Industries or entrepreneurs who work in the mentioned sectors should know the steps to apply for this scheme.

How to Apply for Animal Husbandry Infrastructure Development Fund (AHIDF)?

Steps to make an application for Animal Husbandry Infrastructure Development Fund are as follows.

Step 1: Individuals need to visit the Udyami Mitra portal and select the ‘Apply for loan’ option.
Step 2: They have to log in to the applicant's portal by entering their phone number, and the OTP sent to their respective number.
Step 3: An applicant has to fill the application with required details such as name, constitution, proposed infrastructure, eligibility, applicant details, project details, etc. Click on ‘Submit’ to proceed.
Step 4: Individuals need to upload the mentioned documents and click on submit application option to complete the steps.

Ideally, the ministry will conduct an initial screening of this application based on AHIDF schemes guidelines. A lender will pick the loan application form from the portal and approve it after scrutinising the submitted documents.

The ministry will approve interest subvention based on a lenders' sanction letters and mark the same on the official portal. The loan is disbursed to an applicant’s account after compliance with terms and conditions.

Apart from fulfilling the AHIDF eligibility criteria and knowing the application process, potential applicants have to submit certain documents to validate their identity.

What Are the Documents Required for AHIDF Scheme?

Following are the documents required for an AHIDF loan.

Address proof
Bank Statement of the last six months
Cite plan for a project
Detailed information on a project
A thorough plan of a processing facility
Educational certificate
Income proof
KYC papers
Landholding proof
List of equipment and machinery
Road Map to ensure quality Management of the project

What Are the Benefits of Animal Husbandry Infrastructure Development Fund (AHIDF)?

Following are the benefits beneficiaries can enjoy with the Animal Husbandry Infrastructure Development Fund scheme.

A beneficiary only needs to contribute 10% margin money as an investment. The remaining 90% will be offered as a loan component by scheduled banks.
This scheme offers a flexible moratorium period for principal loan amount up to two years and six years repayment period.
The government will extend a 3% interest subvention to eligible beneficiaries.
Credit guarantees will be offered to sanctioned projects which fall under MSME defined ceilings under Credit Guarantee Fund.
These projects will receive a guaranteed coverage of up to 25%.

Individuals can go through the website to gain further updates on the scheme.

This is some vital information on the Animal Husbandry Infrastructure Development Fund scheme and its operation. Individuals should read the terms and conditions related to this loan before applying. Doing so will help them make an informed decision regarding borrowing and repayments.

Frequently Asked Questions

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Does the AHIDF scheme come with a limit in terms of loan amount?

No, there are no higher or lower loan limits set against the AHIDF scheme.

Who offers the credit guarantee against the AHIDF scheme?

NABARD will provide a credit guarantee against the AHIDF scheme.

What is the main objective of the Animal Husbandry Infrastructure Development Fund (AHIDF)?

The AHIDF aims to promote investment in the animal husbandry sector by providing financial support for infrastructure development, such as dairy processing, meat processing and animal feed plants.

This not only boosts rural income but also enhances food security. In regions where livestock is a major livelihood, such development often goes hand-in-hand with access to veterinary services and even health insurance policies for workers handling livestock-intensive operations.