The Union Cabinet, headed by Prime Minister Narendra Modi, has approved the extension of the Animal Husbandry Infrastructure Development Fund (AHIDF) for another three years up to 2025-26. The scheme will be implemented under the Infrastructure Development Fund (IDF) with an outlay of Rs. 29,610.25 crore.
Changes in the Scheme as in 2024
Under the extended scheme, the AHIDF will incentivize investments for various segments of the animal husbandry sector, including dairy processing, product diversification, meat processing, animal feed plants, breed multiplication farms, animal waste to wealth management, and veterinary vaccine and drug production facilities. Additionally, Dairy Cooperatives will now also avail benefits for modernization and strengthening of dairy plants.
About the Scheme
The AHIDF aims to promote investment in the livestock sector by providing financial support and incentives for infrastructure development. Eligible entities such as individuals, private companies, Farmer Producer Organizations (FPOs), MSMEs, and Section 8 companies can avail of the scheme’s benefits. The scheme offers a 3% interest subvention for 8 years, including a two-year moratorium, for loans up to 90% from scheduled banks and institutions like the National Cooperative Development Corporation (NCDC), NABARD, and NDDB.
Benefits of the Scheme
The AHIDF has already made significant contributions to the animal husbandry sector, including the addition of milk processing capacity, feed processing capacity, and meat processing capacity to the supply chain. The scheme has led to a 2-4% increase in processing capacity in the dairy, meat, and animal feed sectors. Moreover, by including new activities like technologically assisted breed multiplication farms and strengthening veterinary drugs and vaccine units, the scheme is expected to further enhance infrastructure in the livestock sector.
Key Data Insights
AHIDF Outlay: Rs. 29,610.25 crore
Interest Subvention: 3% for 8 years with a two-year moratorium on loans up to 90% from scheduled banks, NCDC, NABARD, and NDDB
Credit Guarantee Fund: Government to provide credit guarantee up to 25% of the credit borrowed from the Credit Guarantee Fund of Rs. 750 crore
Impact of AHIDF:
Added capacity: 141.04 LLPD of milk processing, 79.24 lakh metric tons of feed processing, and 9.06 lakh metric tons of meat processing.
Processing capacity increased by 2-4% in dairy, meat, and animal feed sectors.
Opportunities in Animal Husbandry Sector
Lucrative investment opportunities ranging from value addition, cold chain and integrated units of Dairy, Meat, Animal Feed units to technologically assisted Livestock and Poultry farms, Animal Waste to Wealth Management, and Setting up of Veterinary Drugs/Vaccine units.
Employment Generation: Aimed at directly and indirectly employing 35 lakh people through entrepreneurship development.
Beneficiaries: Approximately 15 lakh farmers have benefitted directly or indirectly from the scheme
Contribution to Farmer’s Income: AHIDF aims to contribute to the Prime Minister’s goal of doubling farmers’ income by driving higher productivity and promoting export of livestock products.
Through its focus on infrastructure development and investment promotion, the AHIDF aims to contribute to the Prime Minister’s goal of doubling farmers’ income and boost the nation’s economy by promoting exports of livestock products.
