Cabinet approves extension of Animal Husbandry Infrastructure Development Fund till FY25-26 – CNBCTV18

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The Union Cabinet has approved the continuation of the Animal Husbandry Infrastructure Development Fund (AHIDF) for another three years till FY2025-26. AHIDF will be implemented under the Infrastructure Development Fund (IDF) with an outlay of 29,610.25 crores.

The scheme aims to incentivise investments in dairy processing, meat processing, product diversification, animal feed plants, breed multiplication farms, animal waste to wealth management (agri-waste management), veterinary vaccines and drug production facilities.

The government will provide a 3% interest subvention for eight years, including two years of moratorium for a loan up to 90% from the scheduled bank and National Cooperative Development Corporation (NCDC), NABARD and NDDB. The eligible entities can range from individuals to private companies, FPOs, MSMEs and Section 8 companies. The scheme also provides for credit guarantees to MSMEs and dairy cooperatives up to 25% of the credit borrowed from the Credit Guarantee Fund worth 750 crores.

After the inclusion of new activities like technologically assisted breed multiplication farms, strengthening of veterinary drugs, vaccine units and animal waste to wealth management, the scheme aims to exhibit a huge potential for upgradation of infrastructure in the livestock sector. So far, AHIDF has led to the addition of 141.04 LLPD (Lakh Ltr. Per Day) of milk processing capacity, 79.24 lakh metric tons of feed processing capacity and 9.06 lakh metric tons of meat processing capacity, apart from directly and indirectly benefiting 15 lakh farmers. The scheme has been able to increase processing capacity by 2-4% in the dairy, meat and animal feed sector.

The scheme aims to generate direct and indirect employment for 35 lakh people through entrepreneurship development and aims for wealth creation in the livestock sector. The government hopes that investment by incentivisation in AHIDF would not only leverage private investment by up to seven times but would also motivate farmers to invest more in inputs to increase their productivity and income.

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