New Agri and Farming Business covered under Subsidy on Interest on Term Loan in Scheme AHIDF

Dear Businessman/Investors,

Welcome in KIP’s Blog, today we are going to share with you a New Subsidy Scheme i.e., “New Agri and Farming Business covered under Subsidy on Interest on Term Loan in Scheme AHIDF”.

This scheme is introduced to provide the benefit to the meat processing units, animal feed plants, Poultry farming, manufacturing unit of milk products etc which is relatable directly to the farmers, small producers to boost the setup of these basic amenities items in order to provide the quality products and ensure protein enrichment at a very affordable prices.

This will overall contribute to the growth of the economy as a whole. The major benefit under this scheme that the Existing units can also apply for this scheme in case of any expansion in the eligible projects. The new as well as existing units can avail the benefit under this scheme. The existing units which already availed the loan on or from 24.06.2020.

Under this Scheme, Department of Animal Husbandry & Dairying will provide the assistance of as interest subvention on the loan sanctioned by the bank to the eligible units for the eligible projects.

Business Activities covered under this scheme:

1.Dairy Processing and Value Addition Infrastructure like manufacturing of Ice cream,
2.Meat Processing and value addition infrastructure,
3.Animal Feed Plant/ Animal Feed Testing Laboratory,
4.Poultry Farming,
5.Breed Improvement technology and Breed Multiplication farm for cattle, buffalo, sheep goat etc.

Beneficiary of this Scheme:

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

Financial Assistance/Subsidy/Benefits Available:

The Quantum of Assistance as under would be provided as per the given below terms:

A. Interest Subvention:

Interest subvention of 3% is provided to all eligible entities by the Department for 8 Years on the term loan sanction by the banks.
However, Interest subvention will not be allowed for the loan sanctioned for procurement of land, working capital, old machineries and vehicle for personal use.

Note: The project shall be eligible for loan up to 90% of the estimated/ actual project cost from the Scheduled Bank and Interest subvention shall be applied on entire Loan Amount without any maximum cap limit on loan amount).

B. 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.

There are many other scheme of Government which provide the capital subsidy, SGST subsidy, electricity subsidy to the agri businesses in various scheme of State Government and Central Government.

So if you are going to plan for set up a New Business Unit or expand your existing business unit then You should plan according to above said scheme.

If you want to avail the benefit of AHIDF Subsidy

Then you kindly fill this form:– https://forms.gle/YJZsnzHDUNqPDdRG6

Or you are missing subsidy benefit 

Then you can join our Business and Subsidy Update Plan

If you want to know more about different subsidy schemes contact us at- 8683898080

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