Animal Infrastructure Development Fund (AHIDF) Scheme

The animal husbandry sector is a major contributor to India's rural economy, offering vast opportunities for MSMEs like yours. However, many businesses face challenges due to outdated infrastructure and limited access to affordable finance. The AHIDF Scheme is designed to bridge this gap by providing easy loans and financial support, helping you set up or upgrade your animal husbandry operations with modern facilities and equipment.

What is the Animal Infrastructure Development Fund (AHIDF) Scheme?

The Animal Infrastructure Development Fund (AHIDF) Scheme was launched by the Department of Animal Husbandry & Dairying, Government of India, in June 2020. This scheme aims to provide medium to long-term credit facilities to MSMEs, Farmer Producer Organizations (FPOs), and other eligible entities for developing infrastructure in the animal husbandry sector, including dairy, meat processing, and animal feed plants.

Objectives of the AHIDF Scheme

• You get support to increase milk and meat processing capacity, helping rural producers like you access organised markets.
• You can benefit from better price realisation for your produce.
• You help provide quality milk and meat products to Indian consumers.
• You contribute to meeting the country’s growing need for protein-rich food and help fight malnutrition, especially among children.
• You have the chance to develop your entrepreneurship skills and create more jobs in your community.
• You can explore export opportunities and help increase India’s share in the global milk and meat market.
• You make quality animal feed available for cattle, buffalo, sheep, goats, pigs, and poultry, ensuring balanced nutrition at affordable prices.

Key Features of the AHIDF Scheme

• You can avail a loan tenure of up to 8 years, which includes a 2-year moratorium on principal repayment.
• The government offers you an interest subvention of 3% per annum for all eligible entities on the interest charged by banks.
• As an MSME, you benefit from credit guarantee coverage up to 25% under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme.
• Your eligible activities include dairy processing, meat processing, animal feed plants, cold chain development, logistics, and value addition infrastructure.
• To apply, your project must have a minimum cost of ₹1 crore, with no upper limit on the investment.
• You are eligible to receive a loan covering up to 90% of your project cost, excluding the cost of land.
• Your project proposal is reviewed by the Project Approval Committee, which evaluates eligibility, financial viability, and other criteria. If your loan exceeds ₹50 crore, it is reviewed by the Project Sanctioning Committee (PSC) before final approval.
• Your contribution as a beneficiary depends on your enterprise type: 10% for micro and small units, 15% for medium enterprises, and 25% for other categories.
• The loan repayment period is up to 8 years, and you also get a 2-year moratorium on principal repayment.

Financial Assistance Offered Under the AHIDF Scheme

Eligibility Criteria for AHIDF Scheme

Eligibility

You are eligible if you are:

• An MSME engaged in animal husbandry, dairy, or meat processing.
• A Farmer Producer Organization (FPO) or Section 8 Company.
• A private company or individual entrepreneur in the animal husbandry sector.
• Willing to contribute at least 10% of the project cost as margin money.
• Able to provide a detailed project report and meet the bank’s credit norms.

Non-eligibility

You are not eligible if:

• Your business is not registered as an MSME or does not operate in the animal husbandry sector.
• Your project does not meet the minimum cost requirement (₹1 crore).

Documents Required for AHIDF Scheme

• Detailed Project Report (DPR) including component-wise cost break-up, total cost, recurring cost, net income, and project viability.
• Proof of Address (such as Aadhaar, Voter ID, Passport, Driving License, or Electricity Bill).
• Copy of PAN, Taxpayer Identification Number (TIN), or Aadhaar card.
• MSME certificate (if applicable).
• Proof of land holding (ownership or lease documents, land conversion certificate if applicable).
• Education certificate (if required for the project).
• Photocopies of training certificates (if available).
• Income proof (such as income tax returns or salary slips).
• Bank statement for the last six months relevant to your project.
• Site plan of the project.
• List of machinery and equipment (with supplier details if possible).
• Layout plan (both civil and machinery) of the processing facility, certified by a registered architect.
• All statutory clearances required for your project, such as Local administration clearances, Trade licenses, Consent of Establishment and Consent to Operate from State Pollution Control Board, FSSAI License, etc.
• Roadmap for quality management of the product, product promotion, and market development.

How to Apply for the AHIDF Scheme

Step 1: Prepare your complete Detailed Project Report (DPR), making sure to include all required documents and details about your project.

Step 2: For the AHIDF Online Application, visit the “Udyami Mitra” Portal developed by SIDBI. Register and log in on the platform to fill out the form.

Step 3: Submit your project proposal along with the DPR and supporting documents through the Udyami Mitra Portal.

Step 4: After you submit your application, your chosen scheduled bank will appraise and sanction your project, subject to the approval of interest subvention under AHIDF by the Department of Animal Husbandry and Dairying.

Step 5: The bank will then forward your application to the Department of Animal Husbandry and Dairying for approval of the interest subvention, using the online mechanism.

Step 6: Utilise the funds as per the approved project plan and adhere to the repayment schedule.
 

Benefits of the Animal Infrastructure Development Fund

• Affordable Finance
  You get loans at a subsidised interest rate, reducing your financial burden.
• Credit Guarantee
  No need for heavy collateral, as MSMEs are covered under the CGTMSE scheme.
• Modernization
  Upgrade your facilities with state-of-the-art infrastructure, improving productivity and product quality.
• Boosts Rural Employment
  Creates jobs and supports economic growth in rural areas
• Encourages Exports
  Helps you meet global standards, opening up export opportunities.

Real-World Examples of AHIDF Scheme

• Leveraging the AHIDF scheme for dairy farming
• Setting up a new animal feed manufacturing unit
• Establishing cold chain logistics for meat products

Related Government Support Plans with AHIDF

Final Words

If you’re looking to grow your animal husbandry business, this animal husbandry subsidy scheme in India is valuable. It offers affordable finance, government support, and the chance to upgrade your operations. Make sure you meet the eligibility criteria, prepare your documents, and approach your bank to get started.