Loan up to 90% is provided to eligible beneficiaries for sanctioned projects
The Indian government has established the Animal Husbandry Infrastructure Development Fund (AHIDF), a central sector scheme, under the Atma Nirbhar Bharat Abhiyan stimulus package for incentivizing investments. Under the aegis of the Indian government’s Department of Animal Husbandry and Dairying (DAHD), AHIDF offers financial support for dairy processing and value-added product manufacturing units.
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 DAIRY PROCESSING
Under the dairy processing infrastructure, eligible entities can avail benefit for 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.
ACTIVITIES COVERED UNDER VALUE-ADDED PRODUCT MANUFACTURING
Eligible entities can also avail loan for 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 facilities
- Flavoured milk manufacturing unit
- Milk powder manufacturing unit
- Whey powder manufacturing unit
- Any other milk products and value addition manufacturing unit.
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), 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 dairy and value-addition infrastructure or strengthening of the 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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