The Cabinet Committee on Economic Affairs has approved setting up of Animal Husbandry Infrastructure Development Fund (AHIDF) worth Rs. 15000 crore.

Practice question for mains:

Q. In pursuit of doubling farmer’s income, development of animal husbandry has to play a crucial role. Discuss.

About AHIDF

• The fund is part of the Rs 20 lakh crore stimulus packages to help people affected by the lockdown to prevent the spread of COVID-19.
• The AHIDF would promote infrastructure investments in dairy, meat processing and animal feed plants.
• Farmer producer organizations (FPOs), MSMEs, Section 8 companies, private companies and individual entrepreneurs would be eligible to benefit from the fund.
• It will ensure the availability of capital to meet upfront investment required for these projects and also help enhance overall returns/ payback for investors.

Provisions of the AHIDF

• The beneficiaries will have to contribute 10 per cent margin towards the proposed infra project and the rest 90 per cent would be a loan component to be made available to them by scheduled banks.
• The balance 90% would be the loan component to be made available by scheduled banks.
• Government of India will provide 3% interest subvention to eligible beneficiaries.
• There will be 2 years moratorium period for the principal loan amount and 6 years repayment period thereafter.

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