The Animal Husbandry Infrastructure Development Fund (AHIDF) is a significant initiative by the Indian government, established to incentivize investments in crucial areas of the animal husbandry sector. With a total outlay of Rs. 15,000 crore, the AHIDF aims to strengthen the dairy, meat processing, and animal feed infrastructure. This article provides a detailed overview of the AHIDF and its components.
Background: Supporting AtmaNirbhar Bharat
The AHIDF was introduced as part of the AtmaNirbhar Bharat Abhiyan stimulus package. The fund targets a range of beneficiaries including individual entrepreneurs, private companies, MSMEs, Farmer Producer Organizations (FPOs), and Section 8 companies. The focus is to improve the quality and capacity of key segments of the animal husbandry sector.
Objectives: Strengthening Key Areas
The primary objectives of the AHIDF are:
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Enhance milk and meat processing capacity and product diversification.
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Improve access to organized markets for rural milk and meat producers.
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Increase price realization for producers.
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Make high quality milk and meat products available to domestic consumers.
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Address protein-rich food requirements and combat malnutrition.
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Generate employment and entrepreneurship opportunities.
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Promote exports in the milk and meat sectors.
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Ensure availability of quality animal feed at affordable prices.
Eligible Activities for Availing Benefits:
The AHIDF supports investments in:
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Dairy Processing: Establishment of new units and strengthening existing processing facilities.
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Value-Added Dairy Product Manufacturing: Supporting units producing ice cream, cheese, UHT milk, flavored milk, milk powder, whey powder, and other dairy products.
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Meat Processing and Value Addition: Setting up new and improving existing meat processing facilities for various species (sheep, goat, poultry, pig, buffalo).
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Animal Feed Manufacturing: Establishment and strengthening of units for manufacturing animal feed, including mini, medium, and large plants, and those producing total mixed ration blocks, bypass protein, mineral mixtures and enriched silage.
Beneficiary Contribution and Loan Quantum:
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Eligible entities can avail loans up to 90% of their project cost.
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Micro and Small units contribute 10%
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Medium Enterprises contribute 15%
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Other categories can contribute up to 25%.
Funding Mechanism: Facilitating Access to Capital
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The Department of Animal Husbandry and Dairying provides a 3% interest subvention to all eligible entities.
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Scheduled banks provide loans, with interest rates not exceeding 200 basis points plus EBLR (for MSMEs).
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A credit guarantee fund of Rs. 750 crore managed by NABARD, offers partial credit cover for MSME projects.
Project Implementation and Monitoring
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The Department of Animal Husbandry and Dairying is the central implementing agency.
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A Project Management Agency (PMA) is responsible for evaluation, appraisal and monitoring of the projects.
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Project Sanctioning Committee (PSC) and Project Approval Committee (PAC) review and approve project proposals.
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The scheme utilizes the Udyami Mitra Portal for online submission and tracking of applications.
Key Implementation Bodies:
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Project Sanctioning Committee (PSC): Headed by the Secretary of DAHD, it approves projects above Rs. 50 crore.
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Project Approval Committee (PAC): Led by a Joint Secretary, it approves projects up to Rs. 50 crore.
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Project Management Agency (PMA): Oversees implementation and monitors projects.
Project Evaluation and Approval:
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Scheduled banks appraise and approve projects based on technical and financial viability.
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Projects are evaluated for their adherence to guidelines, economic feasibility, and ability to meet market demand.
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The scheme emphasizes the use of existing infrastructure, while limiting funds for land procurement or working capital.
Statutory Clearances and Land Requirements
The scheme emphasizes that applicants:
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must acquire land on their own, if they do not have any already.
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Ensure they have all necessary statutory and environmental clearances.
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For leased land the lease agreement should have a minimum period of 30 years.
Awareness Generation: Empowering Stakeholders
The Central government uses multiple channels such as electronic media, print, and social media to create awareness about the scheme. Stakeholders like the Indian Dairy Federation (IDF), Compound Livestock Feed Manufacturers’ Associations (CLFMA), and other industry bodies are involved in outreach efforts.
Conclusion
The Animal Husbandry Infrastructure Development Fund (AHIDF) is a significant step towards strengthening the Indian animal husbandry sector. By providing crucial financial assistance and incentivizing investment, AHIDF aims to modernize infrastructure, improve product quality and accessibility, and empower producers in the dairy, meat, and animal feed industries.