Animal Husbandry Infrastructure Development Fund (AHIDF)

Animal Husbandry Infrastructure Development Fund (AHIDF)

Background

Animal Husbandry Infrastructure Development Fund (AHIDF) is a central sector scheme under Atmanirbhar Bharat Abhiyan stimulus package of Rs.15000 crore. The AHIDF has been approved for incentivizing investments by individual entrepreneurs, private companies, MSME, Farmers Producers Organizations (FPOs) and Section 8 companies to establish:

1. Dairy processing and value addition infrastructure,
2. Meat processing and value addition infrastructure,
3. Animal Feed Plant,
4. Breed Improvement Technology and Breed Multiplication Farm,
5. Animal Waste to Wealth Management (Agri Waste Management)
6. Setting up of Veterinary Vaccine and Drugs Manufacturing facilities.

Objectives of AHIDF

• To increase milk and meat processing capacity and product diversification thereby providing greater access for unorganized rural milk and meat producers to organized milk and meat market.
• 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 protein enriched quality food requirement of the growing population of the country and prevent malnutrition.
• Develop entrepreneurship and generate employment.
• To promote exports and increase the export contribution in the milk and meat sector.
• To make available quality concentrated animals feed to the cattle, buffalo, sheep, goat, pig and poultry to provide balanced ration at affordable prices.

Activities eligible for availing benefits under AHIDF

1. Dairy processing and value addition

• Establishment of new units and strengthening of existing dairy Processing Units with quality and hygienic milk processing facilities, packaging facilities or any other activities related to dairy processing.
• Product Diversification– The Eligible Entities can also avail loan for establishment of new units and strengthening of existing manufacturing units for 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 unit,
• Milk Powder manufacturing unit,
• Whey powder manufacturing unit,
• Any other milk products and value addition manufacturing unit.
• Manufacturing of any equipment and machinery required for dairy processing & value addition including the manufacturers for quality testing, adulterants and contaminants (including manufacturing of Bulk Milk Cooler, Manufacturing of Milk Testing Equipment and adulterants and other equipment related to dairy plant).

2. Meat processing and value addition

• Establishment of 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 facilities/ plant/ unit.

Product Diversification: Establishment of new or strengthening of existing value addition facilities for meat products like Sausage, nuggets, ham, salami, bacon or any other meat products. These facilities could either be integral part of meat processing units or Standalone meat value addition unit.

The project cost of each meat processing plant should compulsorily include Effluent Treatment Plant (ETP), Meat Microbiological Testing Laboratory, Residue Testing laboratory, Cold storage for holding the offals, skin/ hide processing areas and their preservation and refrigeration facilities for holding the chilled products and value-added products for minimum of 24 hours.

Animal Feed Plant

Establishment of Animal Feed manufacturing and strengthening of existing units/ plant of the following categories:

• Establishment of Mini, Medium and Large Animal Feed Plant,
• Total Mixed Ration Block Making Unit,
• Bypass protein unit, Mineral Mixture Plant,
• Enrich Silage making unit,
• Animal Feed Testing Laboratory and any other activities related to animal feed manufacturing.
• Manufacturing of feed supplements, feed premixes, and mineral mixtures plants inthe category of Animal feed

3. Breed Improvement Technology and Breed Multiplication Farm

4. Setting up of Veterinary Vaccine and Drugs Production facilities

• Establishment/ Strengthening of Manufacturing Plant for Animal Vaccines with GMP facilities
• Manufacturing facility of quality veterinary drugs
• Strengthening / Establishment of Veterinary Diagnostic Laboratory (non OIE compliant diseases) and related activities.

The Eligible Entities can avail benefit under AHIDF to establish/ strengthen the following infrastructures:

• Plant & Machinery required for establishment of GMP compliant manufacturing plant and associated utilities purchased/ leased in thename of applicant.
• Civil Construction
• Cold Storage
• Refrigerated van for supply of vaccines
• Quality control laboratory with all equipment
• Research and Development facilities and product development including clinical trials costs in India only (including all non-creditable Taxes &duties)
• Transfer of Technology (TOT) agreements- cost of technology purchase (including all non- creditable taxes & duties)
• Product registration costs (in India/Other countries) including renewal charges. Bioavailability & bioequivalent studies, patent filing, plant inspection charges, WHO- prequalification charges whenever taken up.
• Any other infrastructure required for animal vaccine manufacturing

5. Animal Waste to Wealth Management (Agri-waste management)

1. Animal waste management (including agri-waste management): All infrastructure related to animal waste management ((including agri-waste management)

• Production of PROM (Phosphate Rich Organic Manure)
• Production of Bio-CNG
• Innovative/modern methods of agri and animal waste management including lignin extraction technology from animal/agri waste
• Any other infrastructure related to agri / animal waste management.
  b. Infrastructure development for cow dung/ cow urine production: Equipment for collection of cow dung and cow urine:

• Cost of drums, fillers, tanks, containers etc
• Collection of urines, collection sheds, collection of cattle urines inimproved cattle sheds for use as liquid manure and organic pesticide.
• Construction of sheds for processing of cow dung.
• All machineries required for processing of cow dung and their products.
• Construction of pits for cow dung and tanks of urine

Marketing: The component will also include marketing of manufactured products and the following equipment may be financed:

• Construction of processing / marketing center
• Measuring/ packaging/ labelling facilities
• Cost of mobile market unit.

Loan Amount & Assistance

• Project and Loan Limit– There is no maximum or minimum limit of project cost or term loan for availing of the AHIDF scheme benefits. However, the project under the AHIDF shall be eligible for loan up to 90% of the estimated/actual project cost from the Scheduled Bank based on submission of viable projects by eligible beneficiaries.
• Beneficiary contribution– In case of Micro and Small units=10%, Medium Enterprises= up to 15%, other categories= up to 25%.
• Rate of Interest (ROI) & Repayment period: ROI is to be fixed by scheduled banks but it should not exceed at 200 basis points plus External Bench Mark Based Lending Rate (EBLR). For other project, ROI could attract commercial interest rate of Banks. Maximum re-payment period should not exceed 10 years inclusive of moratorium of 2 years on repayment of principal.
• Interest subvention– 3% is provided to all eligible entities; however, Interest subvention will not be allowed for the loan sanctioned for procurement of land, working capital, old machineries and vehicle for personal use. The Eligible Entities will not be able to get the interest subvention if the Eligible Entities is defaulter of re-payment of loan amount in any given year.
• Credit Guarantee– will be provided only for those projects which are viable and are covered under MSME defined ceilings. Guarantee cover may be obtained either from NAbsanrakshan Trustee Co. Pvt. Ltd. or from Credit guarantee Trust for Micro and Small Enterprises (CGTMSE) as per their respective schemes. Nabsanrakshan Trustee Co. Pvt. Ltd. provides guarantee cover of up to 25% of the term loan for MSME units, while CGTMSE provides guarantee cover of up to 75% of the term loan for micro and small enterprises.

Process of Proposal submission

• The EE will submit the proposal with complete DPR through “Udyami Mitra” Portal developed by Small Industries Development Bank of India (SIDBI). After the initial screening as per the eligibility under the Scheme, the application moves to the preferred bank of the applicant which sanctions the loan for the project and uploads the sanction on the ahidf portal.
• The Schedule Bank after sanction of the project will forward the application to the Department of Animal Husbandry and Dairying for approval of interest subvention through online mechanism.
• One can get model DPR through https://ahidf.udyamimitra.in/Home/KnowledgeCenter