Context: Recently, the Cabinet Committee on Economic Affairs has approved setting up of Animal Husbandry Infrastructure Development Fund (AHIDF) worth Rs. 15000 crore.
About AHIDF

• The fund is part of the Rs 20 lakh crore stimulus packages to help people affected by the lockdown to prevent the spread of COVID-19.
• The AHIDF would promote infrastructure investments in dairy, meat processing and animal feed plants.
• Farmer producer organizations (FPOs), MSMEs, Section 8 companies, private companies and individual entrepreneurs would be eligible to benefit from the fund.
• It will ensure the availability of capital to meet upfront investment required for these projects and also help enhance overall returns/ payback for investors.

Benefits:

• The AHIDF with 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/pay back for investors.
• Such investments in processing and value addition infrastructure by eligible beneficiaries would also promote exports.
• This is also expected to add to farmers’ incomes.

Provisions of the AHIDF

• The beneficiaries will have to contribute 10 per cent margin towards the proposed infra project and the rest 90 per cent would be a loan component to be made available to them 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.