How to Benefit from AHIDF for Your Animal Husbandry Business
Hello Businessman,
We discuss in detail the schemes implemented by the Ministry of Animal Husbandry, Government of India, particularly the Animal Husbandry Infrastructure Development Fund (AHIDF). This is a remarkable scheme specifically designed for industries in the animal husbandry sector and is applicable until 31st March 2026.
If you are involved in the animal husbandry sector or planning to set up a new unit, such as milk processing units, meat processing units, breeding farms, cattle feeds, veterinary drug manufacturing units, or animal waste management projects, you should definitely take advantage of the AHIDF scheme. Under this scheme, there is a provision of interest subsidy of 3% on the term loan for up to 8 years. Additionally, collateral security coverage is available through NAB Sanrakshan Trust, ensuring you can secure loans even if you face challenges with collateral.
One major challenge business owners often face is preparing the right documents and negotiating effectively with banks. Through this blog, we aim to guide you on how to prepare your documents and initiate discussions with banks to benefit from the scheme.
Key Points to Consider:
- Business Registration
Ensure your business is properly registered. Whether it’s a proprietorship, partnership firm, LLP, or company, you need the relevant registration along with MSME and GST certificates. - Site Selection
The site where you plan to establish your unit must comply with state laws. If the site falls under a controlled area, ensure land conversion and NOCs are obtained. For rented properties, a minimum 10-year registered lease agreement is required. Regulatory Approvals
- Obtain FSSAI registration if your business deals with food-related items.
- For pollution-related compliance, get necessary NOCs from the Pollution Control Board.
- If significant water usage is involved, obtain Water Pollution NOC.
- If employing a large workforce, register under EPF and ESI.
- Ensure an electricity connection from the State Electricity Board.
- Project Report (DPR)
Prepare a detailed project report covering civil works, machinery costs, working capital requirements, and financial projections. This DPR will be the foundation for loan approval under AHIDF. - Bank Discussions
Approach the bank with all required documents and discuss your project to align it with AHIDF norms. The bank will forward your project details to the AHIDF portal for approval. - Interest Subsidy Process
Once AHIDF approves your project, the subsidy on the first year’s interest is disbursed upfront and credited to your account. For subsequent years, this process is automated.
This scheme offers significant financial advantages, so ensure that your project complies with the eligibility criteria to maximize benefits.
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