Animal Husbandry Fund Extended to 2025-26

New Delhi, Feb 1 (PTI) The Union Cabinet on Thursday extended the Animal Husbandry Infrastructure Development Fund (AHIDF) till 2025-26.

In June 2020, the government had approved setting up of AHIDF worth Rs 15,000 crore.

According to an official statement on Thursday, the Cabinet approved the "continuation of Animal Husbandry Infrastructure Development Fund (AHIDF) to be implemented under Infrastructure Development Fund (IDF) with an outlay of Rs 29,610.25 crore for another three years up to 2025-26."

The scheme will incentivize investments for dairy processing and product diversification, meat processing and product diversification, animal feed plant, breed multiplication farm, animal waste to wealth management (Agri-waste management) and veterinary vaccine and drug production facilities.

"Government of India will provide 3 per cent interest subvention for 8 years including two years of moratorium for loan up to 90 per cent from the scheduled bank and National Cooperative Development Corporation (NCDC), NABARD and NDDB," the statement said.

The eligible entities are individuals, Private Companies, FPO, MSME, Section 8 companies.

Now, the Dairy Cooperatives will also avail benefits for modernization, strengthening of the dairy plants, it added.

The Centre will also provide credit guarantee to the MSME and Dairy Cooperatives up to the 25 per cent of the credit borrowed from the Credit Guarantee Fund of Rs.750 crore.

"The AHIDF has so far created an impact by adding 141.04 lakh litre per day of milk processing capacity, 79.24 lakh ton of feed processing capacity and 9.06 Lakh ton of meat processing capacity by adding to the supply chain since the inception of the scheme.

The scheme has been able to increase processing capacity by 2-4 per cent in dairy, meat and animal feed sector.