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.