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Animal Husbandry Infrastructure Development Fund (AHIDF)

Animal Husbandry Infrastructure Development Fund (AHIDF)

The Ministry of Animal Husbandry, Dairying and Fisheries launched the Animal Husbandry Infrastructure Development Fund (AHIDF) worth Rs. 15,000 Crores, which was approved under the Atma Nirbhar Bharat Abhiyaan stimulus package. The key objective of the fund is to incentivize individual entrepreneurs, private companies, MSMEs, Farmers Producers Organization (FPOs), and Section 8 companies to establish dairy & meat processing and animal feed plants. The project under AHIDF would be eligible for a loan up to 90 per cent of the estimated cost from scheduled banks and the Government will provide a 3 per cent interest subsidy on these loans.

Objective of AHIDF

The objective of the Animal Husbandry Infrastructure Development Fund (AHIDF) is as follows:

  • To develop entrepreneurship and generate employment
  • To promote exports and increase the export contribution in the milk and meat sector
  • To help to increase the milk and meat processing capacity in India
  • To make available increased price realization for the producer
  • To make available quality milk and meat products for the domestic consumer
  • To fulfil the objective of the protein-enriched quality food requirement of the growing population of our country
  • To make available quality concentrated animals feed to cattle, buffalo, sheep, goat, pig to poultry to provide balanced ration at affordable prices

Eligible Criteria for AHIDF

The eligible entities for getting support from the Animal Husbandry Infrastructure Development Fund (AHIDF) are as follows:

  • Farmer Producer Organization (FPO)
  • Private Companies
  • Individual Entrepreneurs
  • Section 8 Companies
  • Micro Small and Medium Enterprises (MSME

Eligible Entities for AHIDF

Dairy Processing

The entities engaged in the Diary processing are eligible for the benefit of the AHIDF. The establishment of new units or strengthen existing dairy processing units with quality and hygienic milk processing facilities, package facilities, or any other activities related to dairy processing can also apply for the benefit.

Value-Added Dairy Product Manufacturing

The trader/entrepreneur can avail the loan for the establishment of new units and strengthening of existing manufacturing units for the value addition of the following milk products.

  • Ice Cream Unit
  • Cheese Manufacturing Unit
  • Ultra-High Temperature (UHT) Milk processing unit with tetra packaging facilities
  • Flavoured Milk Manufacturing Units
  • Milk Powder Manufacturing Units
  • Whey Powder manufacturing units
  • Any other milk products and value addition manufacturing units

Meat Processing and Value Addition of Facilities

The entrepreneur can avail the benefit of AHIDF for the establishment of the new meat processing unit and strengthening of existing meat processing facilities for sheep, goat, poultry, pig, buffalo in rural, semi-urban, and urban areas.

Large scale integrated meat processing units

Animal Feed Manufacturing Units

The entrepreneur can avail the benefit for the establishment of Animal Feed Manufacturing and strengthening units:

  • Establishment of Mini, Medium and Large Animal Feed Plant
  • Total mixed Ration Block Unit
  • Mineral Mixture Plant
  • Enrich Silage Making unit
  • Animal feed testing laboratory

Prescribed Authority

The Ministry of Animal Husbandry, Dairying and Fisheries is the implementing agency of the Animal Husbandry Infrastructure Development Fund (AHIDF)

Quantum of Loan

The project under the Animal Husbandry Infrastructure Development Fund (AHIDF) is eligible for a loan up to 90% of the estimated actual project cost from the Scheduled Bank based on the project report.

Beneficiary Contribution

The details of beneficiary contribution for the AHIDF are tabulated here for reference:



Beneficiary Contribution


Micro and Small Units



Medium Enterprises



Other categories Enterprises



Interest subvention will not be allowed for the loan sanctioned for procurement of land, working capital, old machinery, and vehicle for personal use.

Interest subvention

The interest subvention for the Animal Husbandry Infrastructure Development Fund (AHIDF) loan is 3% for all eligible entities.

Lending Rate of Interest

The rate of interest will be fixed by Scheduled banks and should not be exceeded at 200 basis points plus External Bench Mark Based Lending Rate (EBLR) for the eligible entities whose projects are falling within MSME defined ceilings.

Credit Guarantee Fund

A credit guarantee fund of Rs.750 crore will be established and the fund will be managed by the National Bank for Agriculture and Rural Development (NABARD). The Ministry of Animal Husbandry and Dairying will pay Rs.75 crore per year over 10 years towards Credit Guarantee at the beginning of each fiscal year.

The credit guarantee will be provided only for those projects which are viable and covered under MSME ceilings and the credit guarantee will be 25% of the credit facility available to the borrower.

Loan Disbursement

The entire amount of AHIDF of Rs.15000 crore will be disbursed by the scheduled banks within a period of 3 years starting from 2020 – 2021.

Repayment of AHIDF Loan

The maximum repayment period of the AHIDF loan is eight years inclusive of 2 years moratorium on the principal amount.

Statutory Clearance Required for AHIDF Project Implementation

The entrepreneurs are required to get the necessary clearances, permits, and licenses for the implementation of the integrated project under the AHIDF. An indicative list of statutory clearances required is as follows:

  • Local Authority Clearances as per the State Requirements
  • No objection from the land authority on the leaseholds ownership of the land
  • Consent to Establish (COE) and Consent to Operate (CO) from the State pollution control Board
  • Trade License
  • Food Safety and Standard Authority of India
  • Water and Air Acts
  • State Electricity Board
  • MSME Registration (only for MSMEs)
  • Registration under Companies Act
  • Registration under the Labour Act/ Employees’ Provident Fund Organization
  • Any other statutory clearances required from the respective state to establish dairy, meat processing, and animal feed plant

Documents Required for AHIDF Loan

Documents Required for AHIDF Loan is listed as follows:

  • Detailed Project including component-wise cost break up, total cost, recurring cost, net income, and viability of the project
  • Proof of Address – PAN/TIN/AaDhard Card/MSME Certificate
  • Proof of Landholding – Ownership or lease, conversion
  • Educational Certificate, Training Certificate, Income proof
  • Bank Statement of the last six month relevant for the project
  • Cite plan for the project
  • List of Machinery and Equipment
  • List out plan (both civil and Machinery) of the processing facility
  • All statutory Clearance (as mentioned above)
  • Road Map to Ensure the Quality Management of the Project, Product Promotion, and Market development.

Prepare Detailed Project Report for AHIDF (DPR)

The entrepreneur needs to prepare a viable project report seeking a loan under the AHIDF along with a self-contained proposal.

Every project report must include the proposal for the establishment of a quality management unit for Milk, meat and animal feed, packaging unit, and product promotion.

The project report must report the future market generation, employment opportunity, and procurement of raw materials.

The DPR, especially for infrastructure related to dairy processing, meat processing, and valued addition and establishment of Animal feed planed, should be prepared based on the following:

  • Identification of the suitable site
  • Necessary engineering and socio-economic investigation and surveys
  • Planning and designing of the facilities
  • Model studies

Note: The applicant can approach the Udyami Mitra Portal of Sidbi for technical assistance in preparing the Detailed Project Report.

AHIDF Application Procedure

The entrepreneur needs to submit the detailed project report and proposal through the Udyami Mitra Portal of Sidbi. The format of application for seeking interest subvention is as follows:


The concerned bank after due appraisal of interest subvention under AHIDF will forward the application to the Department for approval of interest subvention through online mode.

Project Evaluation and sanction of Loan

  • The Department of Animal Husbandry and Dairying will scrutinize the application, evaluate and appraise the proposal sanctioned by the bank for approval of interest subvention under AHIDF.
  • The project approval committee will recommend the project above Rs.50Crore to the Project Sanctioning Committee (PSC) after the screening and evaluation of the projects.
  • The bank will send a copy of loan sanction to Project Approval Committee before such projects being considered for interest subvention under AHIDF.
  • The Project Approval Committee will also recommend for Credit Guarantee on each project falling within the definition of MSME once the loan is sanctioned by the Bank.
  • All the projects will be assessed by the Committee based on the Eligibility Criteria of Applicant, Eligible activities proposed banks approval, geographical preferences, MSME certification, and economic viability.