Context: Recently, the Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved the establishment of ‘Animal Husbandry Infrastructure Development Fund’.

About Animal Husbandry Infrastructure Development Fund (AHIDF)

• It has been launched in pursuance of Atma Nirbhar Bharat Abhiyan stimulus package.
• Its capital is Rs. 15000 crore.
• It would incentivize infrastructure investments in dairy, meat processing and animal feed plants.
• The eligible beneficiaries under the Scheme would be Farmer Producer Organizations (FPOs), MSMEs, Section 8 Companies, Private Companiesand individual entrepreneur with only 10% margin money contribution by them.
• The government of India will provide 3% interest subvention to eligible beneficiaries.
• There will be 2 years moratorium period for repayment of loan with 6 years repayment period thereafter.
• The government of India would also set up a Credit Guarantee Fund of Rs. 750 crore to be managed by NABARD which would provide credit guarantee to the projects which are covered under the MSME defined ceilings.

Source: PIB