In a major development, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved setting up of Animal Husbandry Infrastructure Development Fund (AHIDF) worth Rs 15000 crore. The whopping fund amount is in pursuance of recently announced Atma Nirbhar Bharat Abhiyan stimulus package for ensuring growth in several sectors.

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AHIDF

- AHIDF would facilitate much-needed incentivisation of investments in the establishment of such infrastructure for dairy and meat processing and value addition infrastructure and establishment of animal feed plant in the private sector.

- The eligible beneficiaries under the Scheme would be Farmer Producer Organizations (FPOs), MSMEs, Section 8 Companies, Private Companies and individual entrepreneur with a minimum 10% margin money contribution by them.

- The balance 90% would be the loan component to be made available by scheduled banks.

- Government of India will provide 3% interest subvention to eligible beneficiaries.

- There will be 2 years moratorium period for the principal loan amount and 6 years repayment period thereafter.

Moreover, the Modi government has announced that it would also set up a Credit Guarantee Fund of Rs. 750 crore to be managed by NABARD. Credit guarantee would be provided to those sanctioned projects which are covered under MSME defined ceilings. Guarantee Coverage would be upto 25% of Credit facility of the borrower.

"Modi government has been implementing several schemes for incentivising the investment made by the dairy cooperative sector for the development of dairy infrastructure. However, the government realizes that even MSMEs and Private companies also need to be promoted and incentivized for their involvement in processing and value addition infrastructure," Cabinet Committee on Economic Affairs (CCEA) said in a statement.

"The INR 15,000 cr. AHIDF and the interest subvention scheme for private investors will ensure the availability of capital to meet upfront investment required for these projects and also help enhance overall returns/ payback for investors.  Such investments in processing and value addition infrastructure by eligible beneficiaries would also promote export of these processed and value-added commodities," the statement added.