The Aryavarth Express
Agency(New Delhi): The Union Cabinet, led by Prime Minister Shri Narendra Modi, has recently sanctioned the extension of the Animal Husbandry Infrastructure Development Fund (AHIDF) under the Infrastructure Development Fund (IDF). This extension, with a substantial allocation of Rs.29,610.25 crore, is set to continue for the next three years, up to the fiscal year 2025-26. The primary aim of this initiative is to spur investments in diverse areas such as Dairy and Meat processing, Animal Feed Plant establishment, Breed multiplication farms, management of Animal Waste to Wealth, and the development of Veterinary vaccines and drugs production facilities.
The Government of India has structured a supportive financial environment for this program. It includes offering a 3% interest subvention for 8 years, including a two-year moratorium, on loans up to 90% of the total cost. These loans can be availed from scheduled banks, the National Cooperative Development Corporation (NCDC), NABARD, and the National Dairy Development Board (NDDB). The scheme is accessible to a broad range of entities including individuals, private companies, Farmer Producer Organizations (FPOs), MSMEs, and Section 8 companies. In addition, Dairy Cooperatives are now eligible to receive benefits for modernization and strengthening their operations.
A crucial feature of the scheme is the provision of a credit guarantee up to 25% of the credit borrowed. This guarantee is backed by a Credit Guarantee Fund of Rs.750 crore, focusing primarily on MSMEs and Dairy Cooperatives.
Since its inception, the AHIDF has made a significant impact in the animal husbandry sector. It has contributed to the addition of 141.04 Lakh Litres Per Day (LLPD) of milk processing capacity, 79.24 lakh metric tons of feed processing capacity, and 9.06 lakh metric tons of meat processing capacity. This enhancement has improved the supply chain efficiency, increasing processing capacity by 2-4% across dairy, meat, and animal feed sectors.
The scheme presents a lucrative opportunity for investors in the Livestock sector, encompassing a range of activities from value addition and cold chain development to integrated units of Dairy, Meat, and Animal Feed. The inclusion of new activities like technologically assisted breed multiplication farms, strengthening of veterinary drugs, and vaccine units, as well as Animal waste to wealth management, has further expanded the scheme’s potential for infrastructure upgradation in the Livestock sector.
The AHIDF is poised to play a pivotal role in employment generation, targeting to directly and indirectly support 35 lakh people through entrepreneurship development. It also focuses on wealth creation in the livestock sector. To date, the scheme has benefited approximately 15 lakh farmers, both directly and indirectly.
This initiative aligns with the Prime Minister’s objective of doubling farmers’ income. It aims to catalyze private sector investment, introduce advanced technologies for processing and value addition, and contribute to the national economy by promoting the export of Livestock products. The incentivization in AHIDF is expected to not only leverage private investment but also encourage farmers to invest more in inputs, thereby enhancing productivity and increasing farmers’ income.