Animal Husbandry Infrastructure Development Fund

The Animal Husbandry Infrastructure Development Fund (AHIDF), implemented under Infrastructure Development Fund (IDF) with an outlay of Rs.29,610.25 crore is to be continued until 2025-26. 

The scheme will incentivize investments for Dairy processing and product diversification, Meat processing and product diversification, Animal Feed Plant, Breed multiplication farm, Animal Waste to Wealth Management (Agri-waste management) and Veterinary vaccine and drug production facilities.

Objectives

• To help increasing of milk and meat processing capacity and product diversification thereby providing greater access for unorganized rural milk and meat producers to organized milk and meat market.
• To make available increased price realization for the producer.
• To make available quality milk and meat products for the domestic consumer.
• To fulfill the objective of protein enriched quality food requirement of the growing population of the country and prevent malnutrition in one of the highest malnourished children population in the world.
• Develop enterpreneurship and generate employment.
• To promote exports and increase the export contribution in the milk and meat sector.
• To make available quality concentrated animals feed to the cattle, buffalo, sheep, goat, pig and poultry to provide balanced ration at affordable prices.

Support for Availability of Loan Along with Interest Subvention

Activities Included

• Dairy processing and Manufacturing of value added dairy products.
• Meat processing and facilities for making its value added products.
• Animal Feed Plant.
• Breed improvement, Technology & Breed Multiplication Farm.
• Setting up of Veterinary Vaccine and Drugs Production Facilities.
• Animal Waste to Wealth Management (Agri waste management)

Eligible Entities

Individual  entrepreneurs, Farmer Producer Organisations (FPOs), Dairy Cooperatives, Micro, Small and Medium Enterprises (MSMEs), Section 8 companies, Private companies

Funding

• Loan up to 90% of the estimated / actual project cost. The beneficiary contribution in case of Micro and Small units as per MSME defined ceiling could be 10% while in case of Medium Enterprises as per defined MSME ceiling, beneficiary contribution could go up to 15%. The beneficiary contribution in other categories of enterprises could go up to 25%.  
• Interest subvention ‐ 3% for all Eligible Entities.
• Credit Guarantee Fund : Credit Guarantee fund of Rs. 750 crore to be managed by NABARD, upto 25% of credit facility for MSMEs and Dairy Cooperatives
• No ceiling on Loan amount.
• Maximum repayment period : 8 years, inclusive of moratorium of 2 years on principal amount
• Ease of Doing Business : Application through online portal AHIDF.

For Activities eligible for availing benefits under AHIDF Click Here.

Bouquet of various Schemes for Dairy Value Chain by DAHD for an Individual Farmer / Entrepreneur

Schemes to be leveraged for Setting up Cattle/Buffalo farm for Milk Production

The typical cost for setting up a 200‐animal farm is around Rs 4 crores. There are various schemes available for FPOs/Cooperatives, SHGs and Individual entrepreneurs which may be leveraged for the same.

Towards setting up a breed multiplication farm, the schemes of Rashtriya Gokul Mission and the AHIDF may be leveraged.

While the Rashtriya Gokul Mission allows a capex subsidy of upto 50% of project cost, the AHIDF offers Interest subvention up to 3%. 

Thus, the initial project cost of Rs 4 crores becomes Rs 2 crores leveraging Rashtriya Gokul Mission, the investor can seek a loan on the remaining project cost and receive a 3% Interest subvention on the remaining amount.

If you have land, to reduce the feed cost and increase the availability of fodder, start a feed plant or fodder farming by availing fodder entrepreneurship scheme under National Livestock Mission.

All the animals shall be insured by using State AHD schemes, which provides subsidy.

Schemes to be leveraged for Setting up Sheep / Goat farm for Milk / Meat Production

The typical cost for setting up a 500‐animal farm is around Rs 1 crore. There are various schemes available for FPOs/Cooperatives, SHGs and Individual entrepreneurs which may be leveraged for the same.

Towards setting up a Goat or Sheep farm, the schemes of NLM and the AHIDF may be leveraged.

While the NLM allows a capex subsidy of upto 50% of project cost, the AHIDF offers Interest subvention upto 3%.

Thus, the initial project cost of Rs 1 crore becomes Rs 50 lakhs leveraging NLM, the investor can seek a loan on the remaining project cost and receive a 3% Interest subvention on the remaining amount.

If  you have land, to reduce the feed cost and increase the availability of fodder, start a feed plant or fodder farming by availing fodder entrepreneurship scheme under National Livestock Mission.

All the animals shall be insured by using State AHD schemes, which provides subsidy.

Schemes to be leveraged for Setting up Pig farm for Meat Production

The typical cost for setting up a 100‐sows and 10 boar piggery unit around Rs 60 lacs. There are various schemes available for FPOs / Cooperatives, SHGs and Individual entrepreneurs which may be leveraged for the same. 

Towards setting up a pig farm, the schemes of NLM and the AHIDF may be leveraged.

While the NLM allows a capex subsidy of upto 50% of project cost, the AHIDF offers Interest subvention upto 3%.

Thus, the initial project cost of Rs 60 lakhs becomes Rs 30 lakhs leveraging NLM, the investor can seek a loan on the remaining project cost and receive a 3% Interest subvention on the remaining amount. 

All the animals shall be insured by using State AHD schemes, which provides subsidy.

Schemes to be leveraged for Setting up Poultry farm for Meat/Egg Production

The typical cost for establishment of Parent Farm, Rural Hatchery, Brooder‐cum‐Mother unit for Production of Hatching Eggs, and Chicks and rearing of the said chicks upto four weeks in the mother unit (with minimum 1000 parent layers) is around Rs 50 lakhs.

Towards setting up of poultry mother farm, the schemes of NLM and the AHIDF may be leveraged.

While the NLM allows a capex subsidy of upto 50% of project cost, the AHIDF offers Interest subvention upto 3%.

Thus, the initial project cost of Rs 50 lakhs becomes Rs 25 lakhs leveraging NLM, the investor can seek a loan on the remaining project cost and receive a 3% Interest subvention on the remaining amount.

Schemes to be leveraged for Setting up Feed/Fodder Production

The typical cost for establishment of fodder value addition such as Hay/Silage/Total  Mixed Ration (TMR)/Fodder Block and storage of fodder, infrastructure development related to hay/silage at village level/Fodder blocks making units for procuring machinery like bailer, block making machines, TMR machines/equipment, Forage harvester/reaper, Heavy duty Power operated Chaff cutters and any other PHT equipments around Rs 1 Crore.

Towards setting up of feed or fodder farm, the schemes of NLM and the AHIDF may be leveraged.

While the NLM allows a capex subsidy of upto 50% of project cost,  the AHIDF offers Interest subvention upto 3%.

Thus, the initial project cost of Rs 1 Crore becomes Rs 50 lakhs leveraging NLM, the investor can seek a loan on the remaining project cost and receive a 3% Interest subvention on the remaining amount.

Dovetailing of Projects

The eligible entities may dovetail assistance available under various other similar schemes of Central and State Governments. While dovetailing such assistance, it will be ensured that there is no duplication of assistance for the same component/activity of the project i.e. eligible entity can not avail beneit of interest subvention under any other scheme of Central/State Government, if already availing interest subvention under AHIDF.

Opportunities to maximise the benefits by dovetailing with other Department / Ministry schemes

Recognising the role  of dairy, livestock and poultry sectors in  improving farmers incomes and diversifying off farm opportunities, the Government is supporting the sector’s growth through several conducive policies. Support is provided under various Departments and Ministries including,

• Department of Animal husbandry and Dairying, Ministry of Animal 
  Husbandry, Dairying and Fisheries.
• Ministry of Food Processing Industries.
• Ministry of Micro, Small & Medium Enterprises

Schemes to be leveraged for setting up Milk Chilling Unit

The typical cost for setting up a 2,000 LPD chilling unit is around Rs 10‐11 lakhs.

• For FPOs, Cooperatives and Self Help Groups, the schemes of NPDD and AHIDF may be leveraged for setting up a chilling unit. While the NPDD offers a capex subsidy of upto 60%, the AHIDF offers Interest subvention upto 3%.
• For Small enterprises, the  schemes of Credit Linked Capital Subsidy Component and AHIDF may be leveraged for setting up a chilling unit. While the Credit Linked Capital Subsidy Component offers a capex subsidy of 15% upto Rs. 15 lakh; the AHIDF offers Interest subvention upto 3%.
• For MSMEs and Individual entrepreneurs, the schemes of PMFME and AHIDF may be leveraged for setting up a chilling unit. While the PMFME offers a 35% capex subsidy upto Rs. 10 lakh, the investor may leverage the AHIDF Interest subvention upto 3% for the remaining amount.

Schemes to be leveraged for setting up a Dairy Processing Plant

The typical cost for setting up a 3 LLPD plant is around Rs  80‐85 crore. Given the capex requirements it is not considered here for micro‐enterprises / SHGs.

FPOs/ Cooperatives, Medium enterprises and Individual Entrepreneurs may leverage both Sampada Yojnas as well as AHIDF for maximum beneits and optimising support.

The Sampada Yojna offers a capex subsidy of 50% upto Rs 10 crore. Thus the project cost is reduced to Rs 70‐75 crore. The investor may further leverage the 3% interest subvention under AHIDF on the remaining amount.

Snapshot of Scheme Combinations to be Leveraged

Note:

1. Micro enterprises are those with <Rs. 5 crore annual revenue; small enterprises are those with revenue between Rs. 5 and 50 crores; and medium enterprises are those with revenue between Rs. 50 and 250 crores;
2. This sub mission under NLM is tailored to  FPOs and medium  enterprises as well and can be used by them; Feed plants & processing plants typically have large capex requirements and hence are not considered here for micro‐enterprises/SHGs

Source : Department of Animal Husbandry and Dairying