Animal Husbandry Infrastructure Development Fund (AHIDF) worth Rs. 15000/- cr was established and implemented from 2020-21.

 Central Sector Scheme under the Prime Minister’s Atma Nirbhar Bharat Abhiyan stimulus package for incentivizing investments.

Animal Husbandry Infrastructure Development Fund (AHIDF) worth Rs. 15000/- cr was established and implemented from 2020-21.

  • Out of which Rs. 13500/- cr. will be the loan to be disbursed by the scheduled bank and Rs.1500/- cr. will be the end borrowers contribution.
  • Rs. 1623.78 Crore will be provided as interest subvention over a period of 10 years for repayment of loan (from 2020-21 to 2030-31 which may spill over to the first quarter of 2031- 32).
  • Rs 750 cr. will be credit guarantee to be managed by NABARD for which Rs. 75/- cr. will be provided by the DAHD to NABARD for 10 years.

A) Implementing Agencies

  • Department of Animal Husbandry and Dairying
  • Ministry of Fisheries, Animal Husbandry and Dairying       

B) Objectives

  • Help increasing of milk and meat processing capacity and product diversification.
  • Make available increased price realization for the producer.
  • Make available quality milk and meat products for domestic user.
  • Fulfil the objective of protein enriched quality food requirement of the growing population of the country and prevent malnutrition. 
  • Develop entrepreneurship and generate employment.
  • Promote exports in the milk and meat sector.
  • Make available quality concentrated animals feed at affordable prices.

C) Eligible Entities

a) Farmer Producer Organization(FPO)

b) Private companies

c) Individual entrepreneurs

d) Section 8 companies

e) Micro Small and Medium Enterprises


Ineligible Entities

a)   Government Entities

b)  Co-operative

D) Eligible Activities

Dairy Processing –

Establishment of new units and Strengthening of existing dairy Processing Units with quality and hygienic milk processing facilities, packaging facilities or any other activities related to dairy processing.

Value added Dairy Product Manufacturing –

Establishment of new units and strengthening on existing manufacturing units for value addition of the following milk products-

  • Ice Cream Unit.
  • Cheese Manufacturing Unit.
  • Ultra High Temperature (UHT) Milk processing unit with tetra packaging.
  • Flavoured Milk manufacturing unit.
  • Milk Powder manufacturing unit.
  • Whey Powder manufacturing unit.

Meat Processing and Value addition of Facilities –

  1. Establishment of new meat processing unit and strengthening of existing RURAL MEAT PROCESSING FACILITIES.
  2. Establishment of new meat processing unit and strengthening of existing meat processing unit in SEMI URBAN AREAS.
  3. Establishment of new meat processing unit and strengthening of existing meat processing unit in URBAN AREAS.
  4. Large scale integrated meat processing facilities.
  5. Export oriented integrated buffalo meat processing facilities.
  6. Integrated Poultry meat processing facilities.
  7. Pork processing facilities.
  8. Value Added Products: Meat products or any other value addition unit can also be established as an integral part of the meat processing unit.

Product Diversification

 Animal Feed Manufacturing and Strengthening of existing units/plants -

  1. By pass protein unit
  2. Mineral Mixture Plant
  3. Enrich Silage making unit
  4. 6.     Breed Improvement Technology and Breed Multiplication farm

a. Establishment of IVF Centre –

For rapid genetic upgradation(objective) :

  • Cost for purchase of donor animals/ recipients/ transportation and insurance training of professionals in IVF Technology
  • Training of professionals in IVF Technology.
  • Establishment of infrastructure for transfer of bovine embryos at farmers doorsteps.
  • Storage facility for gas and liquid nitrogen.
  • Research and development activities – embryo sexing, embryo splitting, cloning etc.

b.Sex Sorted Semen –

  • Civil works for laboratory/ Bull shed other civil works including biogas plant.
  • Purchases of Bulls and other requirements
  • Research and development activities
  • Training of manpower
  • Manufacturing of sex sorted machines and various consumables
  • Creating infrastructure for artificial insemination with sex sorted semen. Minimum criteria must be production of 5 Lakh sex sorted semen doses in a year.

c. Breed Multiplication farm –

  • Civil Works- cattle shed/ feed and fodder silage making,  bio gas plant
  • Feeding cost of the animals for 1st year of the project
  • Farm equipment
  • Purchase of breeding animals along with transportation and insurance cost
  • Training of manpower

D) Documents Required

  • Detailed Project Report including component wise cost break up, income etc and viability of Project.
  • Lay out plan (both civil and machinery) of the processing facility certified by the registered architect.
  • List of Machinery and Equipment
  • Statutory clearances (*mentioned in last)
  • Proof of Address, Copy of PAN, Aadhar Card, MSME Certificate
  • Proof of land holding (ownership or lease)
  • Education certificate
  • Income statement / Bank statement
  • Road map to ensure the Quality Management of the product, product promotion and market development

E) Quantum of Loan

 Eligible: For a loan up to 90% of the estimated/ actual project cost.

F) Beneficiary Contribution

  1. In case of Micro and Small Enterprises as per MSMED Act, 2006 – 10%
  2. In case of Medium Enterprises as per MSMED Act, 2006 – 15%
  3. Other Enterprise Category – 25%

G) Interest Subvention

  • Rate of Interest Subvention – 3%for all Eligible Entities.
  • Application for seeking Interest Subvention to be submitted in a specified format.

Interest Subvention not allowed –    

  • For the loan sanctioned for procurement of land, working capital, old machineries and vehicle for personal use.
  • If the Eligible Entities is defaulter of re-payment of loan amount in any given year


H) Lending Rate of Interest - 

The lending rate of interest is to be fixed by scheduled banks and it should not exceed at 200 basis points plus External Bench Mark Based Lending Rate (EBLR) for the Eligible Entities whose project cost are falling within MSME defined ceilings.


I) Credit Guarantee

  • Provided only to Entities fall within the MSME defined Ceilings and
  • Proposed Project should be viable
  • Guarantee Coverage up to 25% of the credit  facility availed.
  • Credit Guarantee will be available by NABARD.
  • Bank will  enter  into MoU with credit guarantee trust set up for AHIDF by NABARD


J) Repayment Period-

  • Maximum Repayment Period – 8 years from the date of first disbursement (inclusive of 2 years moratorium period)
  • Moratorium Period – 2 years on repayment of Principal amount 


K) Process of availing the Loan under AHIDF

1.     Obtain necessary statutory clearances, permits and licenses wherever required for implementation of the intended project.

Single Window Clearance - The State Animal Husbandry Department shall establish the SINGLE WINDOW for facilitating the necessary statutory clearances for the project and handhold the EEs to submit the project to the bank and the department of animal husbandry & dairying, ministry of fisheries, animal husbandry and dairying. 

2.     Preparation of Detailed Project Report (DPR) – The report shall include-

  • The proposal for establishment of quality management unit for milk, meat and animal fees, packaging unit and also the product promotion.
  • The future market generation, employment opportunity, procurement of raw materials and any other information related to project.

3.     The Eligible Entity shall submit the proposal with complete Detailed project Report  through “Udyami Mintra” Portal developed by SIDBI.

4.     After successful submission of application ministry will do initial screening of application based on AHIDF schemes guideline. If application is found eligible, then ministry will mark the same on portal.

5.     After due appraisal and sanction of the project subject to approval of interest subvention.

6.      Project Evaluation and Grant of Interest Subvention –

  • Project Approval Committee after considering the project proposal, will approve the project costing up to Rs. 50 Cr. for grant of Interest Subvention.
  • Project Sanctioning Committee after  considering the project proposal, will approve the project costing above Rs. 50 Cr. for grant of Interest Subvention.

 The Committee will also recommend for Credit Guarantee on each project/ proposal eligible for Credit Guarantee.


Indicative List of Statutory Compliances

1.     Local Authority Clearances as per the State Requirements

2.     No objection from the Land Authority on the lease hold or ownership of the land.

3.     No objection from the Land Authority on the lease hold or ownership of the land.

4.     Trade Licenses

5.     Food Safety and Standard Authority of India

6.     Water and Air Acts

7.     State Electricity Board

8.     MSME Registration (only for MSME companies)

9.     Registration under Companies Act (only for companies)

10.  Registration under Companies Act (only for companies)

11.  Any other Statutory clearances required from the respective state to establish dairy, meat processing and animal feed plant.



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