Overview

The Animal Husbandry Infrastructure Development Fund (AHIDF) is a central sector incentive scheme run by the Department of Animal Husbandry & Dairying (DAHD), Ministry of Fisheries, Animal Husbandry & Dairying, Government of India. Launched in 2020 under the Atmanirbhar Bharat Abhiyan package, AHIDF provides interest-subvented loans to build modern processing and breed-improvement infrastructure in the livestock sector.

In February 2024, the Dairy Processing Infrastructure Development Fund (DIDF) was merged into AHIDF, and dairy cooperatives became eligible for AHIDF support directly. The Union Cabinet has since approved continuing AHIDF as a component of the broader Infrastructure Development Fund (IDF), with a revised combined outlay of ₹29,110.25 crore available up to FY 2025-26 (till 31 March 2026). AHIDF loans are sanctioned through scheduled banks and NBFCs, and applications are processed on the SIDBI-managed Udyamimitra portal.

The objective is to attract private investment — from individual entrepreneurs, MSMEs, Farmer Producer Organisations (FPOs), Section 8 companies, and dairy cooperatives — into dairy processing, meat processing, animal feed plants, breed-improvement farms, veterinary vaccine/drug manufacturing, animal-waste-to-wealth units, and primary wool processing, so that India's livestock value chain is modernised and post-harvest/post-production losses are reduced.

Key Benefits

• 3% Interest Subvention: An annual interest rebate of 3% on the eligible term loan, for up to 8 years, credited to the borrower's loan account by DAHD through the lending bank/NBFC.
• Credit Guarantee Cover: Loans to MSME-eligible borrowers can get credit guarantee coverage of up to 25% of the loan amount through the Credit Guarantee Fund Trust for Animal Husbandry & Dairying (CGFTAHD), managed by NABSanrakshan Trustee Company (a NABARD subsidiary).
• High Loan Quantum: Participating banks/NBFCs can finance up to 90% of the eligible project cost, keeping the entrepreneur's own contribution as low as 10%.
• Repayment Flexibility: Up to a 2-year moratorium on principal repayment, followed by a 6-year repayment period (total loan tenure up to 8 years).
• Wide Sector Coverage: Supports dairy, meat, feed, breeding, vaccine/drug manufacturing, animal-waste management, and wool-processing projects — not restricted to a single sub-sector.
• No Subsidy Cap on Project Size: Interest subvention applies to the full eligible term loan amount (subject to the loan not being used for land purchase, working capital, old machinery, or personal vehicles).

Eligibility Criteria

1. Eligible Applicants: Individual entrepreneurs, private companies, MSMEs, Farmer Producer Organisations (FPOs), Section 8 (not-for-profit) companies, and dairy cooperatives/cooperative societies.
2. Project Sectors: The project must fall under dairy processing and value addition, meat processing and value addition, animal feed plants, breed-improvement technology and breed-multiplication farms, veterinary vaccine and drug manufacturing facilities, animal-waste-to-wealth management units, or primary wool-processing infrastructure.
3. Bankable DPR: The applicant must submit a technically and financially viable Detailed Project Report (DPR) that a participating bank/NBFC is willing to appraise and sanction.
4. No Loan Default: Interest subvention is not available to applicants who default on loan repayment in any year during the subvention period.
5. Use of Funds: The loan should not be sanctioned for purchase of land, working capital requirements, purchase of old machinery, or vehicles for personal use — subvention does not apply to these components.
6. Udyam/MSME Registration: For credit guarantee coverage, the entity must fall within the MSME investment/turnover ceilings and be registered on the Udyam portal, where applicable.

Documents Required

• Identity proof (Aadhaar, PAN, Passport) and address proof of the promoter(s)/entity.
• Detailed Project Report (DPR) with machinery layout, process flow, cost estimates, and financial projections.
• Entity constitution documents — incorporation certificate, partnership deed, cooperative registration, or society registration, as applicable.
• Udyam/MSME registration certificate (if applicable, for credit guarantee eligibility).
• Land title deed or lease/rent agreement for the project site.
• Project cost estimates and quotations for machinery and civil works.
• Audited financial statements and income tax returns of the promoter entity (for existing businesses).
• Bank account details and a letter of consent from the proposed lending bank/NBFC.

How to Apply

1. Prepare the DPR: Draft a Detailed Project Report covering the project's technical design, cost, means of finance, and revenue projections, in line with DAHD's operational guidelines for AHIDF.
2. Register on Udyamimitra: Apply online through the SIDBI-managed portal at ahidf.udyamimitra.in by registering with your mobile number and basic entity details.
3. Select a Lending Bank: Choose from the panel of participating scheduled banks (SBI, PNB, Bank of Baroda, Canara Bank, and others) and NBFCs listed on the portal.
4. Submit the Proposal: Upload the DPR and supporting documents; the proposal is routed to the selected bank for credit appraisal.
5. Bank Appraisal and Sanction: The lending bank evaluates project viability, collateral, and promoter contribution, then sanctions the loan as per its own credit norms.
6. Interest Subvention Claim: On loan sanction and disbursement, the bank forwards subvention claims to DAHD/Nodal agency, and the 3% rebate is applied to the borrower's loan account periodically.

Important Points

• AHIDF now operates as part of the larger Infrastructure Development Fund (IDF) umbrella; dairy cooperatives previously covered under DIDF are now routed through AHIDF.
• Interest subvention is disbursed through the lending bank and is not paid as a separate cash subsidy to the borrower.
• Projects are evaluated primarily on bankability — the government does not guarantee loan sanction; approval rests with the lending institution.
• Keep track of the revised operational guidelines on dahd.gov.in, as sector list, outlay, and subvention terms have been updated more than once since the scheme's 2020 launch.
• Entrepreneurs are advised to consult a chartered accountant or DPR consultant for preparing bankable project reports, since weak DPRs are the most common reason for rejection.

Frequently Asked Questions (FAQs)

What is the Animal Husbandry Infrastructure Development Fund (AHIDF)?

AHIDF is a central government scheme that gives a 3% annual interest subvention and credit guarantee support on bank loans taken to set up dairy processing, meat processing, animal feed, breed-improvement, vaccine manufacturing, and related livestock infrastructure projects.

Who implements AHIDF?

It is implemented by the Department of Animal Husbandry & Dairying (DAHD), Ministry of Fisheries, Animal Husbandry & Dairying, with loan processing routed through the SIDBI-managed Udyamimitra portal and participating banks/NBFCs.

What is the current outlay of AHIDF?

AHIDF now operates under the broader Infrastructure Development Fund (IDF), with dairy cooperatives previously under the Dairy Processing Infrastructure Development Fund (DIDF) also covered. The combined revised outlay is approximately ₹29,110.25 crore, available up to FY 2025-26 (till 31 March 2026).

How much interest subvention can I get under AHIDF?

Eligible borrowers get a 3% per annum interest subvention on their term loan for up to 8 years, provided there is no default on loan repayment during the subvention period.

Can dairy cooperatives apply under AHIDF?

Yes. Since the merger of DIDF into AHIDF in February 2024, dairy cooperatives and cooperative societies can apply directly for AHIDF benefits for dairy processing and value-addition projects.

What is the maximum loan amount banks can sanction under AHIDF?

Participating banks and NBFCs can finance up to 90% of the eligible project cost, meaning the promoter needs to contribute only around 10% as margin money, subject to the bank's own appraisal.

Is collateral required for an AHIDF loan?

Collateral requirements are decided by the lending bank/NBFC as per their own credit policy; eligible MSME borrowers may additionally avail credit guarantee cover of up to 25% through CGFTAHD/NABSanrakshan, which can reduce collateral dependence.

Where can I apply for an AHIDF loan?

Applications are submitted online on the SIDBI-managed portal ahidf.udyamimitra.in. You can also check the latest operational guidelines and FAQs on the official DAHD website, dahd.gov.in.