Opportunities for entrepreneurs in meat processing, value-added products

Loan under AHIDF is available for setting up new or ramping up existing units

Illustration by giant_bilker0/Pixabay

To boost the animal husbandry sector, the Indian government is offering assistance for establishing new units or strengthening existing units of meat processing and value-added products. To do this, it has set up the Animal Husbandry Infrastructure Development Fund (AHIDF), a central sector scheme, under the Atma Nirbhar Bharat Abhiyan stimulus package for incentivizing investments.

Eligible beneficiaries are eligible for loans up to 90% of the estimated/actual project cost from scheduled banks for new and existing units of meat processing and value-added products.

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.



  • Establishment of new meat processing unit and strengthening of existing meat processing facilities for sheep/goat/poultry/pig/buffalo in rural, semi-urban and urban areas.
  • Large-scale integrated meat processing facilities/plant/unit.



  • Establishment of new or strengthening of existing value-addition facilities for meat products like sausage, nuggets, ham, salami, bacon making or any other meats. These facilities could either be integral part of meat processing units or standalone meat value-addition units.

The project cost of each meat processing plant should compulsorily include effluent treatment plant (ETP), meat microbiological testing laboratory, residue testing laboratory, cold storage for holding the offals, skin/ hide processing areas and their preservation and refrigeration facilities for holding the chilled products and value-added products for a minimum of 24 hours.



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



  • 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.



The beneficiaries intending to invest for establishing meat processing 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.

To read in Punjabi and Hindi, click below.

ਮਾਸ ਪ੍ਰੋਸੈਸਿੰਗ ਕੋਸ਼

मांस प्रसंस्करण कोष

Leave a Reply

Your email address will not be published. Required fields are marked *