Financial help available for building, strengthening animal feed units

Mini, medium and large animal feed plants can be established under AHIDF scheme

As part of the Animal Husbandry Infrastructure Development Fund (AHIDF), the Indian government’s Department of Animal Husbandry and Dairying (DAHD) offers financial support for building or strengthening of existing animal feed manufacturing units. The Indian government has established the AHIDF, a central sector scheme, under the Atma Nirbhar Bharat Abhiyan stimulus package for incentivizing investments.

The projects, under the AHIDF, are eligible for loan up to 90% of the estimated/actual project cost from scheduled banks, based on submission of viable projects by eligible beneficiaries.

In case of micro and small units, as per MSME defined ceiling, the beneficiary contribution could be 10% of the loan amount. 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%.

The scheduled bank shall ensure that maximum repayment period should not exceed 10 years from the date of first disbursement inclusive of moratorium of two years on repayment of the principal amount.

ACTIVITIES COVERED UNDER ANIMAL FEED MANUFACTURING UNIT

Eligible entities can also avail themselves of the benefits for establishing or strengthening of existing animal feed manufacturing units/plants of the following categories:

• Establishment of mini, medium and large animal feed plant
• Total mixed ration block making unit
• By pass protein unit
• Mineral mixture plant
• Enrich silage making unit

Animal feed testing Laboratory have to be attached with the medium to large feed plants or the eligible entities can avail benefit for establishment of animal feed testing laboratory in the existing feed plant to ensure quality feed.

BENEFICIARIES ELIGIBLE FOR LOAN UNDER AIHDF

• Farmer producer organisations (FPOs)
• Micro, small and medium enterprises (MSMEs)
• Section 8 companies
• Private companies
• Individual entrepreneurs

BENEFITS

• The beneficiaries have to contribute a minimum of 10% margin money as investment. The balance 90% is the loan component to be made available by scheduled banks.
• The Indian government will provide 3% interest subvention to eligible beneficiaries.
• There will be a 2-year moratorium period for principal loan amount and 6-year repayment period thereafter.
• From the Credit Guarantee Fund (CGF), a credit guarantee would be provided to those sanctioned projects which are covered under MSME defined ceilings. Guarantee coverage would be up to 25% of credit facility of borrower.

HOW TO APPLY?

The beneficiaries intending to invest for establishing animal feed manufacturing units or strengthening existing infrastructure have to submit the proposal with complete DPR through ‘Udyami Mitra’ portal https://ahidf.udyamimitra.in, developed by the Small Industries Development Bank of India (SIDBI).

The scheduled bank, after due appraisal and sanction of the project, will forward the application/ project to the DAHD for approval of interest subvention through online mechanism.

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