Animal Husbandry Infrastructure Development Fund (AHIDF)


Hello Businessman/Investor,

Dairy farming is going to become a high lucrative investment filed specifically due to increase the demand of Packaged and Hygiene Food and eatable items. In order to boost the Agriculture Growth particularly in Dairy Farming and Increase the avenue of more income for farmers, Govt of India has launched a Special fund of Rs. 15000 Crore in the name of Animal Husbandry Infrastructure Development Fund (AHIDF).

The animal husbandry infrastructure development (AHIDF) is a central sector scheme under the prime minister’s “Atma Nirbhar Bharat Abhiyan”.

The Main objectives of this fund is to promote the following business activities as:

  • Dairy Processing and Value addition infrastructure
  • Meat Processing and value addition infrastructure
  • Animal feed plant

The fund will be implemented by Department of Animal Husbandry and Dairying under Ministry of Fisheries, Animal Husbandry and Dairying. The scheme is implemented in all States & UTs and has been implemented within 3 Years from FY 2020- 21 to FY 2023-24.


A. Business Activities Covered:

  1. Dairy Processing and Value Addition Infrastructure:

Under the Dairy Processing infrastructure the You can avail benefit for 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 such as:

  • Ice Cream unit
  • Cheese manufacturing unit
  • Ultra-High Temperature (UHT) Milk processing unit with tetra packaging facilities
  • Flavored Milk manufacturing unit
  • Milk Powder manufacturing unit
  • Whey powder manufacturing unit
  • Any other milk products and value addition manufacturing unit.

2. Meat Processing and value addition infrastructure:

  • Establishment of new meat processing unit and strengthening of existing unit in rural/semi-urban/urban area for meat processing facilities for sheep/goat/ poultry can be processed.
  • Large scale integrated meat processing facilities/ plant/ unit.
  • Export oriented integrated buffalo meat processing facilities/ plant/ unit
  • Integrated Poultry meat processing facilities/unit
  • Pork processing facilities/unit
  • Meat products like Sausage, nuggets, ham, salami, bacon making or any other value addition unit can also be established as an integral part of the meat processing unit.
  • Standalone proposals for setting up of meat value addition unit can also be proposed under AHIDF in the existing unit or new units.

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.

3. Animal Feed Plant:

Under Animal Feed Plant the benefit for 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
  • By pass protein unit
  • Mineral Mixture Plant
  • Enrich Silage making unit
  • Animal Feed Testing Laboratory to be attached with the Medium to Large feed plant or the EE can avail benefit for establishment of Animal Feed Testing Laboratory in the existing Feed Plant to ensure quality feed.
  1. Financial Benefits Available under AHIDF:
  • Loan Facilities:

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. The beneficiary need to invest his fund from 10 to 25% of Total Project cost as per eligibilities.

Maximum re-payment period should not exceed 10 years from the date of first disbursement inclusive of moratorium of 2 years on repayment of principal.

Further there is as such no upper limit/ lower limit of the loan provided.

  • Interest Subvention:

Interest subvention of 3% is provided to all eligible entities by the Department for 8 Years. 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.

Further Interest subvention shall be applied on entire Loan Amount (up to 90% of Total Project Cost).

  • Credit Guarantee:

The credit guarantee will be provided only for those projects which are viable and are covered under MSME defined ceilings and the guarantee coverage would be up to 25% of the credit facility available to the borrower.

The Credit Guarantee will not be provided to other beneficiaries who are not covered under MSME norms, however, those Eligible Beneficiary will be eligible to get interest subvention.


  1. Who can take the benefits of this scheme:

The following entities will be eligible under AHIDF:

  1. Farmer Producer Organization(FPO)
  2. Private companies
  3. Individual entrepreneurs
  4. Section 8 companies
  5. Micro Small and Medium Enterprises


  1. Process of Availing Loan Under AHIDF:
  • Apply Loan Application along with Required documents.
  • Bank will approve the loan after examining the Project Documents and Upload the Loan Sanction letter.
  • Ministry will approve the Interest Subvention on the bases of Sanction letter.
  • After Approval from Ministry, Bank will disburse the loan amount.


  1. Basic Documents required for Filling Loan application under AHIDF:

Documents related to applicant / promoters:

  1. PAN card/Aadhar of Applicant*
  2. MSME Registration Certificate*
  3. Certificate of Incorporation* (In case of company)
  4. Address proof of applicant*
  5. Last three years Audit Report (for existing entities)
  6. Last three years income tax returns* (for existing entities)
  7. Bank statement for last six months
  8. Ownership document* (sale deed / lease deed / rent deed) of project location site/ land
  9. Layout plan (both Civil and Machinery) of processing facility certified by a registered architect
  10. List of Machinery and Equipment (with names of proposed suppliers)

So if you are running any Dairy Unit or Animal Feed Plant or Meat Processing Unit and want to extension in thereof then you can avail the benefits of above said scheme of Animal Husbandry Department.

If you are new and want to start up New Business set up then you can also take the benefit of said scheme.

Further a Farmer Producer Company (FPO) can also take the benefits of said scheme.

To know more about FPO : https://kipfinancial.com/start-new-business-with-farmer-producer-company-and-avail-govt-subsidy-up-to-90/

If you are interested to apply loan under AHIDF then submit your response at: https://forms.gle/ifZKS1Pyc4bn7yUm9


To know more about subsidy, Join our face book Group “Subsidy Scheme” at: https://www.facebook.com/groups/207876937500049/?ref=share


For more, contact at:

90177-51780, 86838-98080, 90171-51780

KIP Financial Consultancy Pvt. Ltd.

DSB – 38, KIP Complex, Red Square Market, Hisar – 125001 (HR)


Email: sales@kipfinancial.com


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