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CCEA okays Animal Husbandry Infrastructure Development Fund

Wednesday, 24 Jun 2020
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The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved setting up the Animal Husbandry Infrastructure Development Fund (AHIDF) worth Rs 15,000 crore.
The Centre has been implementing several schemes for incentivising the investment made by the dairy cooperative sector for development of dairy infrastructure.

AHIDF will facilitate the much-needed incentivisation of investments in 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 will be the Farmer Producer Organizations (FPOs), MSMEs, Section 8 companies, private companies and individual entrepreneur with minimum 10 percent margin money contribution by them. The balance 90 percent will be the loan component to be made available by scheduled banks.

The government of India will provide three percent interest subvention to eligible beneficiaries. There will be two years’ moratorium period for principal loan amount and six years repayment period thereafter.

The Centre will also set up Credit Guarantee Fund of Rs 750 crore to be managed by NABARD. Credit guarantee will be provided to those sanctioned projects which are covered under MSME defined ceilings. Guarantee Coverage will be up to 25 percent of credit facility of borrower.

AHIDF and the interest subvention scheme for private investors will ensure availability of capital to meet upfront investment required for these projects and also help enhance overall returns/pay back for investors.

Investment incentivisation in AHIDF will not only leverage seven times private investment but will also motivate farmers to invest more on inputs thereby driving higher productivity leading to increase in farmers income.

The measures approved through AHIDF will also help in direct and indirect livelihood creation for 35 lakh people.

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