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Animal Husbandry Infrastructure Development Fund (AHIDF) launched

Topics Covered: Economics of animal rearing.

Animal Husbandry Infrastructure Development Fund (AHIDF) launched


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


  • 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.


  • 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.


Prelims Link:

  1. Who will manage the Credit Guarantee Fund?
  2. Interest subvention under the scheme.
  3. Who is eligible?
  4. Funding
  5. About the Dairy Infrastructure Development Fund (DIDF).
  6. NABARD- composition and important functions.

Mains Link:

Discuss the features and significance of AHIDF.

Sources: pib.