The government of India has launched the implementation guidelines for Animal Husbandry Infrastructure Development Fund (AHIDF) worth Rs 15,000 crore. The fund was approved by the Union Cabinet last month under the Atma Nirbhar Bharat Abhiyaan stimulus package for ensuring growth in several sectors.
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Key-Points
The AHIDF has been set up as MSMEs and Private companies also need to be promoted and incentivized for their involvement in processing and value addition infrastructure.
India is engaged in breed improvement to increase milk production and on the other hand also taking care of the processing sector.
India is producing milk of 188 million tonnes and by 2024 milk production is expected to rise up to 330 million tonnes. Only 20 to 25 per cent milk is coming under the processing sector and Government is trying to bring the same up to 40 per cent.
The eligible beneficiaries under the Scheme will be Farmer Producer Organizations, MSMEs, Private Companies and individual entrepreneurs with a minimum 10 per cent margin money contribution by them.
The balance 90 per cent would be the loan component to be made available by scheduled banks. The government will provide 3 per cent interest subvention to eligible beneficiaries.
Significance of Animal Husbandry Infrastructure Development Fund
This ensures the availability of capital to meet upfront investment required for these projects.
It also helps enhance overall returns/pay back for investors.
Such investments in processing and value addition infrastructure by eligible beneficiaries would also promote exports by adding to farmers’ incomes.
