🐄 AHIDF
Animal Husbandry Infrastructure Development Fund - ₹29,610 crore for dairy, meat processing and livestock infrastructure
What is AHIDF?
The Animal Husbandry Infrastructure Development Fund (AHIDF) is a Central Sector Scheme launched on 14th July 2020. It aims to boost investment in the livestock sector by providing concessional loans for infrastructure development in dairy, meat processing, and animal feed production.
The scheme was extended by the Union Cabinet on 1st February 2024 with major enhancements, including merger of the Dairy Infrastructure Development Fund (DIDF) into AHIDF. Applications are accepted until 31st March 2026 and loan disbursements permitted until 31st March 2027.
| Parameter | Details |
|---|---|
| Launch Date | 14th July 2020 |
| Total Outlay | ₹29,610.25 crore (revised from ₹15,000 crore) |
| Scheme Duration | Extended till 2025-26 |
| Application Deadline | 31st March 2026 |
| Loan Disbursement Deadline | 31st March 2027 |
| Ministry | Fisheries, Animal Husbandry & Dairying |
IMPORTANT
February 2024 Updates The Cabinet approved a ₹29,610 crore outlay with DIDF merger, making Dairy Cooperatives eligible. As of August 2025, 402 projects worth ₹14,413 crore have been approved, benefiting ~25 lakh farmers.
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What is AHIDF?
The Animal Husbandry Infrastructure Development Fund (AHIDF) is a Central Sector Scheme launched on 14th July 2020. It aims to boost investment in the livestock sector by providing concessional loans for infrastructure development in dairy, meat processing, and animal feed production.
The scheme was extended by the Union Cabinet on 1st February 2024 with major enhancements, including merger of the Dairy Infrastructure Development Fund (DIDF) into AHIDF. Applications are accepted until 31st March 2026 and loan disbursements permitted until 31st March 2027.
| Parameter | Details |
|---|---|
| Launch Date | 14th July 2020 |
| Total Outlay | ₹29,610.25 crore (revised from ₹15,000 crore) |
| Scheme Duration | Extended till 2025-26 |
| Application Deadline | 31st March 2026 |
| Loan Disbursement Deadline | 31st March 2027 |
| Ministry | Fisheries, Animal Husbandry & Dairying |
IMPORTANT
February 2024 Updates The Cabinet approved a ₹29,610 crore outlay with DIDF merger, making Dairy Cooperatives eligible. As of August 2025, 402 projects worth ₹14,413 crore have been approved, benefiting ~25 lakh farmers.
Objective
The AHIDF aims to:
- Increase milk and meat processing capacity across the country
- Strengthen the livestock value chain from production to processing
- Create employment in rural and semi-urban areas
- Reduce post-harvest losses in animal products
Eligible Activities
AHIDF provides financing for a wide range of animal husbandry infrastructure projects:
| Category | Eligible Projects |
|---|---|
| Dairy Processing | Milk processing units, ice cream, cheese, UHT milk, flavored milk, milk powder, whey powder, value-added milk products |
| Meat Processing | Meat processing and product diversification units |
| Animal Feed | Feed plants for production and processing |
| Breed Improvement | Breed Multiplication Farms |
| Waste Management | Animal waste to wealth management (Agri-waste) |
| Veterinary | Vaccine and drug production facilities |
Eligible Entities
A wide range of entities can avail loans under AHIDF:
| Category | Eligible Entities |
|---|---|
| Individuals | Individual Entrepreneurs, Startups |
| Companies | Private Companies, Section 8 Companies (non-profit) |
| Producer Organizations | Farmer Producer Organizations (FPOs) |
| Cooperatives | Dairy Cooperatives (added in March 2024) |
| MSMEs | Micro, Small and Medium Enterprises |
Loan Terms
| Parameter | Details |
|---|---|
| Loan Coverage | Up to 90% of total project cost |
| Interest Rate (MSMEs) | Up to 2% above EBLR |
| Interest Rate (Others) | At bank's discretion |
| Repayment Period | Maximum 10 years (including moratorium) |
| Moratorium | Up to 2 years |
| Lending Sources | Scheduled Banks, NABARD, NCDC, NDDB |
Borrower's Margin (Contribution)
The required beneficiary contribution varies by enterprise size:
| Enterprise Category | Minimum Contribution |
|---|---|
| Micro & Small Enterprises | 10% of project cost |
| Medium Enterprises | 15% of project cost |
| Others (Large entities) | 25% or more of project cost |
Interest Subvention
One of the key benefits of AHIDF is the 3% interest subvention:
| Parameter | Details |
|---|---|
| Subvention Rate | 3% per annum |
| Duration | For 8 years (including 2-year moratorium) |
| Payment | Paid directly to banks by implementing agency |
Example: If bank charges 10% interest, the government pays 3%, so your effective interest rate is 7% for the first 8 years.
Credit Guarantee (For MSMEs)
MSMEs get additional security through two layers of credit guarantee:
1. AHIDF-Specific Credit Guarantee Fund
This is a dedicated fund created specifically for AHIDF loans, managed by NABARD:
| Parameter | Details |
|---|---|
| Managed By | NABARD |
| Total Corpus | ₹750 crore (₹75 crore/year for 10 years) |
| Guarantee Coverage | 25% of credit facility |
| Guarantee Fee | 1% on outstanding balance (payable within 30 days of sanction) |
| Eligibility | Only for loans where interest subvention is approved |
2. CGTMSE Coverage (Additional)
For smaller loans, MSMEs can also avail the standard CGTMSE scheme:
| Parameter | Details |
|---|---|
| Loan Limit | Up to ₹2 crore |
| Guarantee Coverage | 85% of loan amount |
How they work together: The AHIDF guarantee provides 25% coverage on the full loan. Additionally, for the loan portion up to ₹2 crore, CGTMSE provides 85% coverage. These are complementary protections for lenders.
Note: Entities NOT classified under MSME norms are eligible for interest subvention but NOT for credit guarantee.
Key Requirements
Applicants must meet the following criteria:
| Requirement | Details |
|---|---|
| Land | Must own or have 30-year lease on project land |
| Clearances | All statutory permits and licenses before disbursement |
| Project Viability | Commercially viable and technically sound project |
| Credit History | Applicant must NOT be a loan defaulter |
Claim Process (For Credit Guarantee)
If a loan becomes NPA (Non-Performing Asset), the lending bank can invoke the credit guarantee to recover a portion of the outstanding amount. Here's how the process works:
Claim Eligibility
| Parameter | Details |
|---|---|
| Lock-in Period | 18 months from loan disbursement – guarantee cannot be invoked before this |
| Claim Window | Within 3 years from the date loan is classified as NPA |
| Pre-condition | Bank must have initiated recovery proceedings (legal action, SARFAESI, etc.) |
Why Lock-in Period?
The 18-month lock-in ensures that:
- The project has sufficient time to become commercially operational
- Banks cannot claim guarantee for premature failures due to inadequate due diligence
- Borrowers get reasonable time to stabilize their business
Claim Payment Schedule
| Loan Amount | First Instalment | Timeline |
|---|---|---|
| Up to ₹3 crore | 75% of claim | Within 90 days |
| ₹3 to ₹5 crore | 60% of claim | Within 90 days |
| Above ₹5 crore | 50% of claim | Within 90 days |
Balance Payment: Remaining amount paid within 90 days of second claim submission.
Application Process
- Check Eligibility – Ensure you meet all requirements
- Prepare DPR – Create a Detailed Project Report
- Register on Portal – Visit ahidf.udyamimitra.in
- Upload Documents – Submit required documentation
- Apply – Submit application online
Summary Cheat Sheet
| Parameter | Details |
|---|---|
| Full Name | Animal Husbandry Infrastructure Development Fund |
| Launch Date | 14th July 2020 |
| Total Outlay | ₹29,610.25 crore (revised from ₹15,000 Cr) |
| Scheme Type | Central Sector Scheme |
| Ministry | Fisheries, Animal Husbandry & Dairying |
| Scheme Duration | Extended till 2025-26 |
| Application Deadline | 31st March 2026 |
| Loan Disbursement Deadline | 31st March 2027 |
| DIDF Merger | Merged into AHIDF (Feb 2024) |
| Loan Coverage | Up to 90% of project cost |
| Interest Subvention | 3% p.a. for 8 years (incl. moratorium) |
| Repayment Period | Up to 10 years (incl. 2-year moratorium) |
| Margin (Micro/Small) | 10% of project cost |
| Margin (Medium) | 15% of project cost |
| Margin (Large) | 25%+ of project cost |
| Credit Guarantee (AHIDF) | 25% coverage, ₹750 Cr corpus (NABARD) |
| Credit Guarantee (CGTMSE) | 85% coverage, loans up to ₹2 Cr |
| Guarantee Fee | 1% on outstanding balance |
| Claim Lock-in | 18 months from disbursement |
| Eligible Activities | Dairy, Meat, Feed, Breed, Waste, Vaccine |
| Portal | ahidf.udyamimitra.in |
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