How the AHIDF Scheme Supports Growth in Animal Husbandry

The Indian agriculture sector forms the foundation of our economy, and strong infrastructure is key to its growth. To accelerate this progress and empower farmers, the Government of India has launched the Animal Husbandry Infrastructure Development Fund (AHIDF) — a central sector scheme that promotes private investment in dairy, meat, and feed infrastructure through long-term financial support.

Overview of Animal Husbandry Infrastructure Development Fund (AHIDF)

The Animal Husbandry Infrastructure Development Fund (AHIDF), launched under the Atma Nirbhar Bharat Abhiyan, is a ₹29,110.25 crore Central Sector Scheme aimed at boosting private investment in the livestock sector. Operational until FY 2025–26, it supports projects in dairy, meat processing, animal feed, and waste-to-energy infrastructure. The scheme promotes modernization and sustainability by connecting farmers, entrepreneurs, banks, and consumers. Through affordable financing and structured incentives, AHIDF helps create a robust ecosystem that enhances rural income, entrepreneurship, and self-reliance in animal husbandry—contributing significantly to India’s agricultural growth, employment generation, and food security.

Who Can Apply

The AHIDF scheme is designed to support a wide range of entities across different scales of operation. Both existing units and new projects are eligible to apply for assistance under the scheme. Eligible entities include:

Individual Entrepreneurs – Individuals aiming to start or expand animal husbandry-based enterprises.
Private Companies – Registered entities engaged in dairy, meat, or feed production.
Micro, Small, and Medium Enterprises (MSMEs) – Units involved in processing, value addition, or animal feed manufacturing.
Farmer Producer Organizations (FPOs) – Collectives aiming to establish integrated livestock projects.
Section 8 Companies – Non-profit organizations involved in rural development or agri-infrastructure.
Dairy Cooperatives – Cooperative societies that collect, process, and market milk and milk products.

Eligible Projects

The AHIDF covers 29+ categories of projects related to animal husbandry and dairy infrastructure. Some of the key focus areas include:

Dairy Processing Units:
Establishment or expansion of units producing ice cream, cheese, UHT milk, flavored milk, milk powder, butter, and other value-added dairy products.
Meat Processing Units:
Setting up or upgrading meat processing and cold chain infrastructure for poultry, sheep, goat, pig, or buffalo meat.
Animal Feed Plants:
Establishment of mini, medium, and large animal feed plants, mineral mixture units, silage-making units, and feed testing laboratories to ensure quality nutrition for livestock.
Breed Improvement & Farming Units:
Projects promoting breed multiplication farms, artificial insemination centers, hatcheries, layer and broiler farming, and piggery units for genetic improvement and productivity.
Veterinary Drug & Vaccine Production Facilities:
Infrastructure for the production of veterinary medicines, vaccines, and biologicals to enhance animal health and disease control.
Animal Waste to Wealth Projects:
Initiatives focusing on waste management and renewable energy such as Bio-CNG, organic manure (PROM), and other sustainable by-products from livestock waste.

Key Financial Benefits

The AHIDF offers a wide range of financial advantages, making it one of the most attractive schemes for investors in the animal husbandry sector.

Interest Subvention:
Eligible projects receive a 3% interest subvention per annum on the total bank term loan for up to 8 years, substantially lowering the cost of capital.
High Loan Coverage:
The scheme allows up to 90% of the total project cost to be financed through bank loans, minimizing the entrepreneur’s financial burden.
Credit Guarantee Facility:
Loans up to ₹2 Crore are covered under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), reducing lender risk and improving access to credit.
Top-Up Benefit:
The AHIDF can be combined with other Central or State Government subsidies, including capital subsidies from the Ministry of Food Processing Industries (MoFPI) or National Horticulture Board (NHB). This allows entrepreneurs to maximize financial benefits by dovetailing multiple incentives.

How KIP Can Help You

KIP offers expert guidance to help entrepreneurs, MSMEs, and FPOs maximize benefits from the Animal Husbandry Infrastructure Development Fund (AHIDF) while ensuring full compliance. Our services include:

Subsidy Viability Report (SVR): Identify all eligible incentives based on your project type and location.
Business Modeling: Structure your project to optimize financial and subsidy benefits.
Detailed Project Report (DPR): Prepare complete documentation for bank financing and subsidy eligibility.
Bank Financing Assistance: Support in loan processing and linking with AHIDF interest subvention.
Subsidy Application Support: Help with filing, documentation, and follow-up for AHIDF approval.
Compliance Support: Ensure timely renewal and claiming of recurring benefits such as interest subvention.