Animal Husbandry Infrastructure Development Fund Guidelines

Circulation of Amended Implementation Guidelines for Animal Husbandry Infrastructure Development Fund (AHIDF)

Animal Husbandry Infrastructure Development Fund (AHIDF), Central Sector Scheme under the Infrastructure Development Fund which was under implementation since 2020-27 after realignment was approved by the Cabinet Committee on Economic Affairs (CCEA) on 01.02.2024 to be implemented till 2025-26.

INDEX

Sl. No.	Subject	Page No.
01	Background	1
02	Area of Operation	1
03	Objectives	1
04	Eligible Entities	2
05	Implementing Agency	2
06	Activities Eligible for Availing Benefits Under AHIDF	2
07	Quantum of Loan and Margin Money	7
08	Interest Subvention	7
09	Credit Guarantee Cover	8
10	Funding Mechanism	8
11	Loan Disbursement	8
12	Repayment	9
13	Dovetailing of Projects	10
14	Availability of Land and Statutory Clearances	10
15	Obtaining Statutory Clearances Required for the project	11
16	Formation of the Detailed Project Report	11
17	Submission of the Project Proposal	12
18	Project Evaluation and Sanction	12
19	Implementation Mechanism	13
20	Project Monitoring Unit	14
21	Awareness Generation	15
22	Dispute Resolution and Jurisdiction Of Court	16
23	Annexure I Indicative List of Statutory Clearance	17
24	Annexure II Online Application Form	18

BIBLIOGRAPHY

Short form	Full form
AHIDF	Animal Husbandry Infrastructure Development Fund
NABARD	National Bank for Agriculture and Rural Development
NDDB	National Dairy Development Board
NCDC	National Cooperative Development Corporation
EE	Eligible Entities
MSME	Micro Small Medium Enterprises
SIDBI	Small Industries Development Bank of India
DPR	Detailed Project Report
PSC	Project Sanctioning Committee
PAC	Project Approval Committee
NLM	National Livestock Mission
CGM	Chief General Manager
PMA	Project Management Agency
CLFMA	Compound Livestock Feed Manufacturers’ Association
IDF	Indian Dairy Federation
AILMEA	All India Livestock and Meat Exporters Association
CII	Confederation of Indian Industries
FICCI	Federation of Indian Chambers of Commerce and Industries
ASSOCHAM	Associated Chambers of Commerce and Industry of India
ETP	Effluent Treatment Plant
CTE	Consent to Establish
CTO	Consent to Operate
EPF	Employees’ Provident Fund

GUIDELINES FOR ANIMAL HUSBANDRY INFRASTRUCTURE
DEVELOPMENT FUND

1. Background

The recently announced Prime Minister’s AtmaNirbhar Bharat Abhiyan stimulus package mentioned about setting up of Rs.15000 crore Animal Husbandry Infrastructure Development Fund (AHIDF). The Animal Husbandry Infrastructure Development Fund (AHIDF) has been approved for incentivizing investments by individual entrepreneurs, private companies, MSME, Farmers Producers Organizations (FPOs) and Section 8 companies to establish (i) the dairy processing and value addition infrastructure, (ii) meat processing and value addition infrastructure, (iii) Animal Feed Plant, (iv) Breed Improvement technology and Breed Multiplication Farm (v) Animal Waste to Wealth Management (Agri Waste Management) and (vi) Setting up of Veterinary Vaccine and Drugs Manufacturing facilities

2. Area of Operation

The Animal Husbandry Infrastructure Development Fund (AHIDF) as detailed in the forthcoming paragraphs will be implemented in all States and Union Territories.

3. Objectives

a. To help increasing of milk and meat processing capacity and product diversification thereby providing greater access for unorganized rural milk and meat producers to organized milk and meat market

b. To make available increased price realization for the producer

c. To make available quality milk and meat products for the domestic consumer

d. To fulfill the objective of protein enriched quality food requirement of the growing population of the country and prevent malnutrition in one of the highest malnourished children population in the world

e. Develop entrepreneurship and generate employment

f. To promote exports and increase the export contribution in the milk and meat sector.

g. To make available quality concentrated animals feed to the cattle, buffalo, sheep, goat, pig and poultry to provide balanced ration at affordable prices.

4. Eligible Entities (EEs) For Support Under AHIDF

Following are the eligible entities for availing benefits under the AHIDF Scheme

a. Farmer Producer Organization(FPO)

b. Private companies

c. Individual entrepreneurs

d. Section 8 companies

e. Micro Small and Medium Enterprises

5. Implementing Agency

Animal Husbandry Infrastructure Development Fund will be implemented by the Department of Animal Husbandry and Dairying, Ministry of Fisheries, Animal Husbandry and Dairying.

6. Activities Eligible for Availing Benefits Under AHIDF

6.1. Dairy Processing: under the Dairy Processing infrastructure the EE can avail benefit for establishment of the following:

6.1.1. Establishment of new units and Strengthening of existing dairy processing units with quality and hygienic milk processing facilities, packaging facilities or any other activities related to dairy processing.

6.1.2. Value added dairy product manufacturing:

The EE can also avail loan for establishment of new units and strengthening of existing manufacturing units for value addition of the following milk Products:

i. Ice Cream unit

ii. Cheese manufacturing unit

iii. Ultra High Temperature (UHT) Milk processing unit with tetra packaging facilities

iv. Flavoured Milk manufacturing unit

v. Milk Powder manufacturing unit

vi. Whey powder manufacturing unit

vii. Any other milk products and value addition manufacturing unit.

viii. Manufacture of any equipment and machinery required for dairy processing & value addition including the manufacturers for quality testing, adulterant and contaminants

6.2 Meat processing and Value addition of facilities:

6.2.1. Establishment of new meat processing unit and strengthening of existing meat processing facilities for sheep/goat/ poultry/pig/buffalo in rural, semi-urban and urban areas.

6.2.2. Large scale integrated meat processing facilities/ plant/ unit.

6.2.3. Value Added Products: Establishment of new or strengthening of existing value addition facilities for meat products like Sausage, nuggets, ham, salami, bacon or any other meat products. These facilities could either be integral part of meat processing units or Standalone meat value addition unit.

6.2.4. The project cost of each meat processing plant should compulsorily include Effluent Treatment Plant (ETP), Meat Microbiological Testing Laboratory, Residue Testing laboratory, Cold storage for holding the offals, skin/ hide processing areas and their preservation and refrigeration facilities for holding the chilled products and value added products for minimum of 24 hours.

6.3. Animal Feed manufacturing units and strengthening of existing

Units/plant of the following categories:

6.3.1. Establishment of Mini, Medium and Large Animal Feed Plant

6.3.2. Total Mixed Ration Block Making Unit

6.3.3. By pass protein unit

6.3.4. Mineral Mixture Plant

6.3.5. Enrich Silage making unit

6.3.6. Animal Feed Testing Laboratory to be attached with the Medium to Large feed plant or the EE can avail benefit for establishment of Animal feed Testing Laboratory in the existing feed plant to ensure quality feed.

6.3.7 Manufacturing of feed supplements, feed premixes and mineral mixtures plants in the category of Animal feed.

6.4 Breed Improvement Technology and Breed Multiplication Farm

Under this category, the following activities will be covered for taking benefit under AHIDF

6.4.1 Cattle / buffalo

1. Establishment of IVF Centre – For rapid genetic upgradation:

(i) getting assured pregnancy in low producing recipients maintained by farmers.

(ii) supply of high yielding heifers/ cow

(iii) bulls for semen production

The funding may be made available under AHIDF for:

a. Civil works Laboratory / recipients shed/Donor Shed and other civil works including cattle chute, biogas plant\

b. Laboratory equipments / farm equipment, other items and furnishing of IVF lab

c. Cost for purchase of donor animals/recipients / transportation and insurance

d. Training of professionals in IVF technology

e. Establishment of infrastructure for transfer of bovine embryos at farmers doorstep

f. Fully equipped Mobile IVF lab / other means of mobility of IVF technicians

g. Storage facility for gas and liquid nitrogen

h. Research and development activities – embryo sexing, embryo splitting, cloning etc.

2. Sex Sorted Semen: Funding may be made available under AHIDF for:

a. Civil works for laboratory/Bull shed/boundary wall/biosecurity fencing/ other civil works including biogas plant

b. Laboratory equipments/ farm equipments including cryo containers/ LN storage infrastructure/ agriculture/ agriculture implements/ other requirements

c. Purchase of Bulls/ and other requirements

d. Research and development activities – development of sex sorting machines

e. Manufacturing of sex sorted machines and various consumable

f. Training of manpower

Creating infrastructure for artificial insemination with sex sorted semen. Minimum Criteria must be production of 5 lakh sex sorted semen doses in a year.

3. Breed Multiplication Farm – Funding under AHIDF will be provided for the

a. Civil Works – cattle shed/ feed and fodder go-downs/ internal roads/ boundary wall/ biosecurity fencing/training centre/ other civil works including biogas plant

b. Farms equipments- tractors/bailers/silage making machine/ chaff cutter/ other agricultural equipments

c. Purchase of breeding animals along with transportation & insurance cost

d. Sex sorted semen/ embryos/setting up of IVF lab

e. Milk storage/ testing/processing equipments

f. Training of manpower

g. Feeding cost of the animals for 1^st year of the project

h. Research and development for breeding activities – bovine monitoring system, AI guns, ET guns, software development etc.

6.4.2. Sheep/Goat

a. Sheep & Goat Breeding Farm with technology upgradation (not the traditional farming system)

b. Goat Frozen Semen Station

c. Sheep Semen Station and Artificial Insemination technology

6.4.3. Pig

a. Pig Breeding Farm with modern infrastructure

b. Fattening Farm with modern technology and integrated production system.

c. Semen Station for pig and Artificial Insemination Technology.

6.4.4. Technologically assisted (modern technology based integrated/ advanced poultry farms) poultry farm including purchase of parent and grand parent stock

a. Hatcheries with environmentally controlled facilities

b. Layer Farm with environmentally controlled system

c. Broiler Breeder Farm with environmentally controlled system

6.5 Setting up of Veterinary Vaccine and Drugs Production facilities

6.5.1. Establishment / Strengthening of Manufacturing Plant for Animal Vaccines with GMP facilities:

The Eligible Entities can avail benefit under AHIDF to establish/ strengthen the following infrastructures:

1. Plant & Machinery required for establishment of GMP compliant manufacturing plant and associated utilities purchased/ leased in the name of applicant

a. Civil construction

b. Cold storage

c. Refrigerated vans for supply of vaccines

d. Quality control laboratory with all equipments

e. Research and development facilities and product development including clinical trials costs in India only (Including all non creditable taxes and duties)

f. Transfer of Technology (TOT) agreements- cost of technology Purchase(including all non- creditable taxes & duties)

g. Product registration costs (in India/Other countries) including renewal charges. Bioavailability & bioequivalent studies, patent filing, plant inspection charges, WHO-prequalification charges whenever taken up.

2. Any other infrastructure required for animal vaccine manufacturing

6.5.2. Manufacturing facility of quality veterinary drugs:

a. Building

b. Plant and Machinery for GMP compliance

c. Quality testing lab with all required equipment

d. Any other infrastructure for veterinary drug manufacturing

6.5.3. Strengthening / Establishment of Veterinary Diagnostic Laboratory (non-OIE compliant diseases) and related activities as mentioned at 1 (f) to (g)

6.6 Animal Waste to Wealth Management (Agri-waste management)

6.6.1 Animal waste Management (including agri-waste management)

All infrastructures related to animal waste management ((including agri-waste management)

a. Production of PROM (Phosphate Rich Organic Manure)

b. Production of Bio-CNG

c. Innovative/modern methods of agri and animal waste management Including lignin extraction technology from animal/agri waste

d. Any other infrastructure related to agri / animal waste management 6.6.2 Infrastructure development for cow dung/ cow urine production.

Equipment for collection of cow dung and cow urine:

a. Cost of drums, fillers, tanks, containers etc

b. Collection of urines, collection sheds, collection of cattle urines in improved cattle sheds for use as liquid manure and organic pesticide.

c. Construction of sheds for processing of cow dung

d. All machineries required for processing of cow dung and their products.

e. Construction of pits for cow dung and tanks of urine

6.6.3 Marketing: The component will also include marketing of manufactured products and the following equipment may be financed:

a. Construction of processing / marketing centre

b. Measuring/ packaging/ labelling facilities

c. Cost of mobile marketing unit

7. Quantum of Loan and Margin Money /Beneficiary Contribution

7.1. The project under the AHIDF shall be eligible for loan up to 90% of the estimated/ actual project cost from any Scheduled Bank, National Cooperative Development Corporation (NCDC), based on submission of viable projects by eligible beneficiaries. The beneficiary contribution in case of Micro and Small units as per MSME defined ceiling could be 10% while in case of Medium Enterprises as per defined MSME ceiling, beneficiary contribution could go up to 15%. The beneficiary contribution in other categories of enterprises could go up to 25% or more.

7.2. Cost escalation of the approved project, if any occurred during project implementation on account of genuine reasons like natural calamity, technical compulsions, change in the SoRs and any other unavoidable circumstances shall be considered for enhancement of loan amount, within the reasonable time and note more than two years from the date of approval of the particular project.

7.3. Interest subvention will not be allowed for the loan sanctioned for procurement of land, working capital, old machineries and vehicle for personal use.

7.4. Eligible proposals, which have been sanctioned by the banks, however, the entities could not submit the proposal on the portal shall be allowed to avail benefits under the Scheme, which have received sanction for term loan by the banks / lending institutions before or after the date of notification of scheme guidelines, provided project has not commercially operationalized prior to the date of notification of scheme. However, the calculation of interest subvention shall be on interest amount accrued post the date of notification of scheme i.e. 24.06.2020 or loan sanction date whichever is later.

8. Interest Subvention and Lending Rate of Interest

8.1. Interest subvention: 3% for all Eligible Entities.

8.2. Lending Rate of Interest: The rate of interest to be fixed by scheduled banks or NCDC as per their existing system of interest rate calculation as per the RBI guidelines. However, the rate of interest should not exceed at 200 basis points plus External Benchmark Based Lending Rate (EBLR) or equivalent rates for the Eligible Entities whose project cost are falling within MSME defined ceilings. The Rate of interest to be fixed by scheduled banks/ lending institutions such as NCDC, for other projects could be based on commercial interest rate of Banks.

8.3. The Department of Animal Husbandry and Dairying will transfer the interest subvention amount directly to the Scheduled Bank. Initially the Department will pay interest subvention amount in advance upfront to the lending bank for the first year based on the request of Scheduled Bank. Interest subvention from the 2^nd year onwards would be released based on the non- NPA borrowers entitlement claimed by the Scheduled Banks every year in advance.

8.4. Interest subvention will not be provided to such beneficiaries which are found to be defaulter at any point of time for repayment and also the bank is free to take any action as per its existing guidelines. No interest subvention will be provided for the duration an account is NPA even if the beneficiary returns to standard category.

9. Credit Guarantee Cover

9.1.1 A Credit Guarantee fund Trust of Rs. 750 cr. (Rupees Seven Hundred Fifty Crore) has been established which is managed by NABSanrakshan Trustee Co. Pvt. Ltd., a dedicated trust floated by NABARD for the purpose.

9.1.2. Department of Animal Husbandry and Dairying will pay Rs. 75 crore per year over 10 years towards Credit Guarantee at the beginning of each Financial Year.

9.1.3. 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.

9.1.4. The Credit Guarantee will not be provided to other beneficiaries who are not covered under MSME norms, however, those EEs will be eligible to get interest subvention.

9.1.5. The detailed guidelines along with the features of the Credit Guarantee Fund managed by NABS an rakhan Trustee Company Pvt. Ltd. can be accessed from their portal.

9.2 Credit Guarantee cover by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

Eligible units may also avail credit guarantee cover from CGTMSE scheme for the loan amount upto Rs 2.00 crores with the guarantee cover of maximum extent of 85% of loan amount. Guidelines of CGTMSE to be referred in this regard at www.cgtmse.in

10. Funding Mechanism

10.1 The entire amount of AHIDF of Rs. 15000 cr. will be disbursed by the Scheduled Bank starting from 2020-21

10.2 The Scheduled bank may utilize their available financial resources to lend the Eligible Entities.

11. Loan Disbursement

11.1.The entire amount of AHIDF of Rs.15000 crore will be disbursed by the scheduled banks, NCDC, within a period of 3 years starting from 2020-21. No disbursement of loan to be considered after 31.03.2023 until the further approval of the scheme.

12. Repayment

12.1.Maximum repayment Period: 8 years inclusive of moratorium of 2 years on principal amount.

12.2. The Scheduled Bank shall ensure that maximum re-payment period should not exceed 10 years from the date of first disbursement inclusive of moratorium of 2 years on repayment of principal. The interest subvention will be provided only for 8 years including two years of moratorium.

12.3. However, the Financing Bank, at their discretion, may curtail the repayment period depending on the project magnitude, size of the financial investment, repayment capacity of the project proponents (EEs) etc.

12.4. Further, subject to the provisions of AHIDF, the operational and credit related decisions like process of repayment, penal interest, security and extent of finance will be decided by the Scheduled Bank.

12.5. Subject to provisions of AHIDF, Scheduled Bank will fix the lending rates in consonance with broad regulatory guidelines of RBI taking into account their cost of funds and the risk perception of the loan.

12.6. Subject to provisions of AHIDF, the Scheduled Bank may consider providing additional loan against justified escalations of the approved projects.

12.7. A project will be non-starter, if no drawls are made within six months from the date of sanction by the Scheduled Bank. Further, the Sanction would lapse if the EE, fails to ground the project within a period of 12 months, from the date of sanction by the Scheduled Bank.

12.8. The lending bank may consider withdrawal of projects by EEs on account of genuine constraints and difficulties as per the Bank’s terms of reference in this regard.

12.9. The Scheduled Bank may consider stopping further disbursements of loans and advances sanctioned for the project, until such amount in default are paid in full by EEs. In such cases, neither the lending agency nor Department of Animal Husbandry and Dairying, GoI, shall be liable for any loss, damage or expenses that may be caused in the completion of aforementioned projects.

12.10. DAHD will have authority for recall of interest subvention along with interest (10% per annum) within 30 days after a notice is issued under any of the following circumstances:

a) If project is not completed within approved project period including extension if any.

b) If the assisted project stops its commercial operations within seven (7) years from the date of commencement of commercial production of the project.

c) If during such period, it comes to the notice of the Department that interest subvention has been availed by manipulating / concealment of information of facts or that the interest subvention has been utilized for purposes other than those for which it was sanctioned

d) In case beneficiary rescind/ expire/ abandon the project

12.11 For recalling the interest subvention regarding any project sanctioned under AHIDF, the following process needs to be adopted:

a) Banks/lending institutions shall regularly provide physical and financial periodical progress
reports of projects for which interest subvention has been released.

b) In case there is concern regarding progress of the project, the Department shall not disburse any further subvention and may instruct bank to reverse interest subventions made till date.

c) The banks/lending institutions can charge back to beneficiary or recover as per its internal policies in case of Non-Performing Asset

13. Dovetailing of Projects

The EEs may dovetail assistance available under various other similar schemes of Central and State Governments. While dovetailing such assistance, it will be ensured that there is no duplication of assistance for the same component/activity of the project i.e. eligible entity can not avail benefit of interest subvention under any scheme of Central / State Government.

14. Availability of Land and Statutory Clearances

14.1 Loan under AHIDF shall not be provided for acquisition of land in any manner such as purchase, transfer, lease, accession/addition etc. required for implementation of the identified project activities.

14.2. The Eligible Entity are required to acquire necessary land (in case of non-availability of land with them) at their own cost and complete all processes associated with land acquisition, before submission of the proposal for finance under AHIDF.

14.3. The projects having land on long term lease (minimum 30 years) may also be considered for financing under AHIDF. However, the lease period/ agreement should be of sufficient duration to secure the loan. In case of lease requisite No Objection Certificate from the competent authority for mortgage to Bank may be obtained.

14.4. The EE may not be allowed to terminate the lease agreement intermediately (earlier than the agreed lease period) and sell out the land as well as facilities created with the loan availed under the AHIDF. However, in case of compulsion to do so in unavoidable circumstances whatsoever then EE shall obtain permission from the concerned Bank after return of the entire loan availed till that time, with applicable interest and prepayment penalty, if any, to the Scheduled Bank, in a single installment.

14.5. Confirmation with necessary documentary evidence on availability of land and statutory clearances (wherever necessary) shall be clearly indicated in the Detailed Project Report/Self Contained Proposal. A list of clearances which could be required mandatorily is attached at Annexure I.

14.6 The EEs shall provide documentary evidence/certificate of availability of requisite land free from all encroachment and encumbrances.

15. Obtaining Statutory Clearances Required for the project

15.1. The EEs are required to obtain necessary clearances, permits and licenses whatsoever and wherever required for implementation of the intended project under the AHIDF. The requisite expenditure, if any involved for obtaining statutory clearances shall be met by the applicants/ beneficiaries.

15.2. For obtaining Statutory clearances, the beneficiary may have to approach various Department/ Organizations in the State Government. This may create unnecessary hurdle to the beneficiary. Therefore, the State Animal Husbandry Department shall establish the single window for facilitating the necessary statutory clearances for the project and handhold the EEs to submit the project to the Bank and the Department of Animal Husbandry & Dairying, Ministry of Fisheries, Animal Husbandry and Dairying. An indicative list of statutory clearances required is at Annexure I.

16. Formation of the Detailed Project Report (DPR)

16.1. The EEs shall prepare the detailed viable project report seeking loan under the AHIDF along with self-contained proposal.

16.2. Every project report must include the proposal for establishment of quality management unit for milk, meat and animal feed, packaging unit and also the product promotion.

16.3. The project report should also include the future market generation, employment opportunity, procurement of raw materials and any other information related to project.

16.4. The Detailed projects should be prepared based on:

a) Identification of suitable site

b) Necessary engineering and socio-economic investigations and surveys,

c) Planning and designing of the facilities and

d) Model studies wherever required.

e) The DPR should also contain following documents: Change in Land Use (CLU), Clearance from Local Authority, Details Dossier, Plan of Action; Time-Line for Implementation of Project, List Of Vaccines to be Produced

16.5. The EEs may also approach concerned State Animal Husbandry Department, State Government or Central Government Corporations, Consultancy Services seeking technical assistance for preparation of project documents. The EE, if required, also consult the list of Handholding agencies available in the ahidf.udyamimitra.in managed by Small Industries Development Bank of India (SIDBI).

16.6. The State Animal Husbandry Department to handhold such EEs to prepare the projects when requested by them including facilitating the necessary clearances through Single Window System.

17. Submission of the Project Proposal

17.1. The EE will submit the proposal with Detailed Project Report through ahidf.udyamimitra.in Portal developed by Small Industries Development Bank of India (SIDBI).

17.2. On the basis of eligibility as per the scheme guidelines, DAHD will mark the application eligible/ returned/ rejected. The eligible applications will move to respective banks as mentioned on the application form by the applicant. The Schedule Bank after due appraisal will upload the sanction of the project for approval of interest subvention through online mechanism which will be deliberated in PAC/PSC.

17.3. Application for seeking interest subvention to be submitted as per the Form attached at Annexure-II.

18. Project Evaluation and Sanction

18.1. The Project Management Agency set up in the Department of Animal Husbandry and Dairying shall scrutinize the application, evaluate and appraise the proposal sanctioned by the Scheduled Banks for approval of interest subvention under AHIDF by Project Approval Committee.

18.2. The Project Approval Committee will meet regularly and consider the proposals placed before it and accord approval to projects costing up to Rs. 50 cr. for grant of interest subvention.

18.3. The Project Approval Committee shall recommend the project above Rs. 50 cr. to the Project Sanctioning Committee (PSC) after screening and evaluation of the projects.

18.4. The Bank shall send a copy of loan sanction to Project Sanctioning Committee/ Project Approval Committee prior to such projects being considered for interest subvention under AHIDF.

18.5. The Project Approval Committee/ Project Sanctioning Committee will also recommend for Credit Guarantee on each project falling within the definition of MSME once the loan is sanctioned by the Bank.

18.6. All the projects will be assessed by the Committee based on the Eligibility criteria of the EEs, Eligible Activities proposed, Bank’s approval, geographical preferences, MSME certification, sectorial preferences, demand and economic viability.

19. Implementation Mechanism

19.1. Following Committees have been constituted by the Department of Animal Husbandry and Dairying, Ministry of Fisheries, Animal Husbandry and Dairying for implementation of AHIDF.

19.2. Project Sanctioning Committee (PSC)

19.2.1. Composition:

i. Secretary, Department of Animal Husbandry & Dairying, GOI- Chairperson

ii. Representative of NABARD, not less than the rank of CGM

iii. Financial Advisor of Department of Animal Husbandry & Dairying, GOI

iv. Representative of Department of Financial Services, not less than Joint Secretary level

v. Representative of Ministry of Food Processing, not less than Joint Secretary level

vi. Joint Secretary (Cattle & Dairy Development), Department of Animal Husbandry & Dairying

vii. Secretary of the concerned State

viii. Representative of participating Banks not less than Deputy Managing Director/ CGM

ix. Joint Secretary (NLM)- Member Convener

19.2.2. Terms of References (ToRs) of PSC would be as follows:

a. To take decision on approval/amendment of AHIDF guidelines,

b. To take decision on addition and deletion of activities, approve annual action plans and fund drawl plans etc.

c. To approve projects for interest subvention based on recommendation of Project Approval Committee

d. To delegate powers that may be necessary for smooth implementation of the project.

e. To modify physical and financial targets of individual activities and also unit cost correction.

f. To co-opt external experts from the field of Animal Husbandry as members of the PSC.

g. To hold its meeting as and when needed

19.3. Project Approval Committee (PAC):

19.3.1. Composition

(i) Joint Secretary (National Livestock Mission)- Chairman

(ii) Representative from NABARD

(iii) Representative from Financial Advisor, DAHD

(iv) Representative of Department of Financial Services

(v) Representative from Ministry of Food Processing Industries

(vi) Representative from the Concerned Bank

(vii) Representative from the Dairy Division

(viii) Representative from the Concerned State (not below the rank of Director)

(ix) Representative from the Credit Guarantee Fund Trust for Animal Husbandry & Dairying

(x) Representative from the Small Industries Development Bank of India

(xi) Joint Commissioner/ Deputy Commissioner/ Director of NLM Division- convener.

19.3.2. Terms and References (ToRs)

a. The Project Approval Committee will prepare the Scheme guidelines and submit the same to the Project Sanctioning Committee for approval

b. The project approval Committee will approve project up to Rs. 50.00 cr. for interest subvention.

c. The project above Rs. 50 cr. for interest subvention will be approved by the Project Sanctioning Committee after recommendation of the project approval committee.

d. The meeting of the Committee will be held in every month or even before one month depending on the proposal.

20. Project Monitoring Unit

20.1 The Department of Animal Husbandry and Dairying will outsource Project Management Agency (PMA).

20.2. The terms of reference of the PMA will be as under:

(i) The PMA will arrange all logistic support including manpower at the Head Quarter to undertake all Desk and Field monitoring, and identifying critical issues and bottlenecks such as non-starter projects, slow progressing projects, geographical and sectorial preferences, compilation of project-wise progress report, outcomes etc. The design for monitoring mechanism will be approved by the PSC.

(ii) PMA will also undertake work for monitoring the udyamimitra.in portal regarding application received, processed and pending with the banks and in DAHD, Development of Dashboard for MIS system, follow up with the States for getting project proposal, hand holding the beneficiaries on the queries on the AHIDF, scouting the proposals, interaction with the banks. PMA will also evaluate the projects and place before the PAC/PSC for approval.

(iii) PMA will also assist in all the matters relating to monitoring and evaluation of the projects and preparation of report, before PAC& PSC.

20.3 PSC, PAC and PMA together will carry out the work of Project Monitoring in the following manner:

(i) The Project Sanctioning Committee in the Department of Animal Husbandry and Dairying will review and monitor the projects approved under AHIDF. The monitoring meetings of PSC shall be held on quarterly basis to review the progress of the project taken up under the AHIDF.

(ii) The PMA will collect information on the progress of the project(s) from EEs, Banks on a quarterly basis including physical and financial achievements and place before the PSC.

(iii) PSC will carry out project-wise midterm corrections, if any required due to technical and administrative compulsions faced by any project at the time of implementation. The Mid­term corrections shall include increase/decrease of the project scope, re-arrangement of the project components, re-appropriation of funds from one item to another item within the overall approved project cost.

(iv) The project will be considered non-starter when the EE fail to get their loan disbursed from the Bank.

21. Awareness Generation

21.1. There are various stake holders who can avail benefit of the scheme. These stake holders need to be aware of the scheme adequately so that they can access the fund. Therefore, the Central Government will use Electronic, Print and Social Media to create public awareness.

21.2. The Stake Holders’ like Indian Dairy Federation (IDF), Compound Livestock Feed Manufacturers’ Associations (CLFMA), All India Livestock and Meat Exporters’ Association, State Government’s Livestock Corporation, CII, FICCI, ASSOCHAM and others will be involved in awareness creation.

21.3. The State Government will also create ground level awareness through conferences, seminar, and workshops, business meet, through electronic, print and social media. The funding support will be provided to States and other agencies to create such awareness.

21.4. In addition to existing provisions, News-paper, magazine, radio, TV advertisements, multimedia campaigning, social media advertisement (pamphlets/ leaflets / flyers / brochures / standees / banners) may be followed as a part of outreach activity and to conduct such activities, DAHD will bear the expenditure.

21.5. NDDB, Industry Associations and lending institutions entrusted with responsibility of identifying professional agencies to provide handholding support for DPR preparation and AHIDF application process. The NDDB, industry associations and banks will adopt transparent mechanism to empanel the handholding agencies and determine professional fee for DPR preparation and application process for beneficiaries. The Department shall transfer the professional fee to the NDDB, industry associations and lending institutions which, in turn, shall make payment to the empanelled professional agencies.

22. Dispute Resolution and Jurisdiction of Court

In case of dispute arising out of selection of proposals and implementation of approved project under this AHIDF scheme guidelines except in case of “Force Majeure” and decided to incorporate in the guidelines as under:

i. The decision of the Department on all matters relating to eligibility, acceptance or rejection of the applications, mode of selection, interest subvention approved and imposition of penalty shall be final and binding on the applicant.

ii. Any dispute arising out of any condition stipulation in the guidelines, selection of proposals and implementation of approved project under this Scheme will be subject to Courts / Tribunals having jurisdiction over Delhi.

********

Annexure I

Indicative List of Statutory Clearances

Sl. No.	Name of Statute
01	Local Authority Clearances as per the State Requirements
02	No objection from the Land Authority on the lease hold or ownership of the land.
03	Consent to Establish (CTE) and Consent to Operate(CTO) from the State Pollu­tion Control Board
04	Trade Licenses
05	Food Safety and Standard Authority of India
07	Water and Air Acts
07	State Electricity Board
08	MSME Registration (only for MSME companies)
09	Registration under Companies Act (only for companies)
10	Registration under Labour Act/ EPF Act.
11	Any other Statutory clearances required from the respective state to establish dairy, meat processing and animal feed plant.

Annexure II

Government of India

Ministry of Fisheries, Animal Husbandry & Dairying

Department of Animal Husbandry & Dairying

ONLINE APPLICATION FORM

SEEKING INTEREST SUBVENTIONUNDER ANIMAL HUSBANDRY INFRA-STRUCTURE DEVELOPMENT FUND

Photo

Signature

S. No.	Particulars
1.	Category of Infrastructure a. Dairy Processing b. Meat Processing c. Animal Feed Plant d. Breed Improvement technology and Breed Multiplication Farm e. Animal Waste to Wealth Management (Agri Waste Management) f. Setting up of Veterinary Vaccine and Drugs Manufacturing facilities
2.	Name of Eligible Entity a. Farmers producer Organization(FPO) b. Section 8 Company c. Individuals Entrepreneur d. Private company e. MSME
3.	Address a. Location of the Proposed Project ( With Geo-Tagging and location Map and Photo of the site)GIS location b. Location of the Corporate Office c. Address of the individuals.
4.	Total Turnover of the Company (Provide last three years balance sheet)
5	If falling under MSME definition, please provide Certificate
6.	PAN/TIN/Aadhar Number
7.	Telephone No. /Mobile No.
8.	Email address
9.	Bank details where loan application has been sanction a. Name of the Bank b. Bank Branch c. Address d. Email Address of Branch Manager e. Telephone Number f. IFSC Code
10.	Details of the Bank Accounts a. Name of the Bank b. Bank Branch c. Address d. Loan Account Number e. Telephone Number f. IFSC Code
11.	Project Details( Brief description of the project)

(Signature of Applicant)

Please attach following documents

• Detailed Project including component wise cost break up, total cost, recurring cost, net income etc. and viability of project
• Supporting documents [Proof of Address, Copy of PAN/TIN /Aadhaar card, MSME certificate (if applicable), proof of land holding (ownership or lease, conversion), education certificate, photocopies of training certificate, income proof, bank statement for last six months relevant for the project.
• Change of Land use.
• Site Plan of the project.
• List of Machinery and Equipment.
• Layout plan (both Civil and Machinery) of the processing facility certified by the registered architect.
• All Statutory clearances like Clearances from the Local administration, Trade Licenses, Consent of Establishment, Consent to Operate from State Pollution Control Board, FSSAI License required for the project
• Roadmap to ensure the Quality management of the product, product promotion and market development.

R.-99014 / 19 / 2021-NLM-DADF
Government of India
Ministry of Fisheries, Animal Husbandry & Dairying
Department of Animal Husbandry and Dairying

Krishi Bhawan, New Delhi.

Dated 07.02.2023

OFFICE ORDER

Subject: 4^th amendment in the Implementation Guidelines of Animal Husbandry Infrastructure Development Fund.

In pursuance of the decisions taken in the Seventh Project Sanctioning Committee (PSC) constituted under Animal Husbandry Infrastructure Development Fund (AHIDF) held on 25.01.2023, under the Chairmanship of Secretary AHD, the following amendment has been made in the existing implementation guidelines 2.0 for Animal Husbandry Infrastructure Development Fund (AHIDF) issued on 14.07.2022 for implementation of AHIDF:

2. Para 9.1.3 under implementation guidelines 2.0 for Animal Husbandry Infrastructure Development Fund (AHIDF) issued on 14.07.2022 may be read as under:

9.1.3. 25% Credit Guarantee of the total borrowings will be provided to that Eligible entity which is registered under MSME at the time of application under the Scheme even if the unit is graduating out from the MSME status.

3. This issues with the approval of competent authority.

(Dr. 0. P. Chaudhary)

Joint Secretary to the Government of India

Distributions:

1. To all the Scheduled Banks.

2. NABSanrakshan Pvt. Ltd., Plot C-24, G Block, BandraKurla Complex, BKC Road, Bandra East, Mumbai, Maharashtra 400051, to make necessary changes in Credit Guarantee guidelines accordingly

3. NABARD- Plot C-24, G Block, Bandra Kurla Complex, BKC Road, Bandra East, Mumbai, Maharashtra 400051

4. All the State Animal Husbandry Departments/ UTs

5. Department of Financial Services, Ministry of Finance

6. Department of Expenditure, Ministry of Finance

7. NIC of DADF for uploading in the Department’s website

8. SIDBI for uploading in the AHIDF portal

Copy to:

1. PS to Hon’ble Minister FAHD, Krishi Bhawan, New Delhi

2. PS to Hon’ble MOS, FAHD, Krishi Bhawan, New Delhi

3. PPS to Secretary, AHD, KrishiBhawan, New Delhi

4. PPS to Animal Husbandry Commissioner, DAHD, Chanderlok Building.

5. PPS to Additional Secretary (C&DD), DAHD, Krishi Bhawan, New Delhi

6. PPS to Joint Secretary (NLM), DAHD, Krishi Bhawan, New Delhi

7. Joint Commissioner (NLM)/Assistant Commissioner (AH), DAHD, Chanderlok Building, Delhi.

No. AA-17/2/2022-NLM-DADF
Government of India
Ministry of Fisheries, Animal Husbandry & Dairying
Department of Animal Husbandry & Dairying

Chanderlok Building,
Janpath, New Delhi
Date: 26.03.2024

OFFICE MEMORANDUM

Subject: Circulation of Amended implementation Guidelines for Animal Husbandry Infrastructure Development Fund (AHIDF)

The undersigned is directed to say that the Animal Husbandry Infrastructure Development Fund (AHIDF), Central Sector Scheme under the Infrastructure Development Fund which was under implementation since 2020-21 after realignment was approved by the Cabinet Committee on Economic Affairs (CCEA) on 01.02.2024 to be implemented till 2025-26.

2. In the realigned scheme, new entity (Dairy Cooperative) is included in the eligible entities and new lenders National Dairy Development Board (NDDB), National Bank Agriculture and Rural Development (NABARD) and National Cooperative Development Corporation (NCDC) are included in the lending agencies revision of AHIDF guidelines.

3. Accordingly, the Project Sanctioning Committee (PSC) under the Secretary, Department of Animal Husbandry & Dairying has approved the amendment of the existing guidelines of AHIDF in the meeting held on 19.03.2024.

4. In view of the above, the amended guidelines of the realigned AHIDF are enclosed for consideration to all concerned. The amended guidelines may be read as addendum to the existing implementation guidelines and read in conjunction with the existing guidelines.

Enclosure as above

(Dr. Lipi Sairiwal)

Deputy Commissioner (AH)

Distribution:

1. Secretaries/ Principal Secretaries, All States Government and UTs, Animal Husbandry Departments.

2. Chief General Manager, NABARD, Plot C-24, G Block, Bandra Kurla Complex, BKC Road, Bandra East, Mumbai, Maharashtra – 400051

3. Joint Secretary, Department of Financial Services, 3rd floor Jeevan Deep Building, Sansad Marg, New Delhi

4. Joint Secretary, Ministry of Food Processing Industries, Panchsheel Bhawan, August Kranti Marg, Khelgaon, New Delhi

5. Chairman, National Dairy Development Board, Anand, Gujrat-388001

6. Managing Director, National Cooperative Development Corporation,4, Sin Institutional Area, Hauz Khas, New Delhi- 110016

7. Chief Executive Officer, CGFTAHD, NABSanrakshan Pvt Ltd., Mumbai

8. Joint Secretary, Department of Financial Services, Ministry of Finance, Department of Revenue, North Block, New Delhi-110001

9. All the concerned Banks

Copy to:

1. PS to Hon’ble Minister, Ministry of Fisheries, Animal Husbandry and Dairying.

2. PS to Hon’ble MOS, Ministry of Fisheries, Animal Husbandry and Dairying

3. PPS to Secretary, Department of Animal Husbandry and Dairying, Krishi Bhawan, New Delhi

4. PPS to AS&FA, Department of Animal Husbandry and Dairying, Krishi Bhawan, New Delhi

5. PPS to AHC, Department of Animal Husbandry and Dairying, Krishi Bhawan, New Delhi

6. PPS to AS (C&DD), Department of Animal Husbandry and Dairying, Krishi Bhawan, New Delhi

7. PS to JS (NLM)/JS (LH)/ JS (GNS), Department of Animal Husbandry and Dairying, Krishi Bhawan, New Delhi

8. NIC DAHD: with the request to upload the Guidelines on the DAHD portal

9. SIDBI: with the request to upload the Guidelines on the AHIDF portal

5th Addendum as amendments in the Implementation Guidelines 2.0 of realigned Animal Husbandry Infrastructure Development Fund.

In pursuance of the approval of extension of Animal Husbandry Infrastructure Development Fund (AHIDF) and its merger with Dairy processing and infrastructure development fund (DIDF) by cabinet committee on Economic affairs (CCEA) on 1.02.2024 the following paragraph and conditions are to be amended in the operational guidelines of AHIDF

2. In view of the above, the following amendments and additions shall be included in the operational guidelines of AHIDF.

a) BACKGROUND: The following amendment has been made:

“Government of India has approved the continuation of Animal Husbandry Infrastructure Development Fund (AHIDF) as a component under Infrastructure Development Fund (IDF) subsuming Dairy Processing Infrastructure Development Fund (DIDF). The revised outlay of AHIDF is ₹ 29110. 25 crores up to FY 2025-2026 till 31.03.2026

The Animal Husbandry Infrastructure Development Fund (AHIDF) has been approved for incentivizing investments by individual entrepreneurs, private companies, MSME, Farmers Producers Organizations (FPOs), Section 8 companies and Dairy Cooperatives to establish (i) Dairy processing and value addition infrastructure (ii) Meat processing and value addition infrastructure (iii) Animal Feed Plant (iv) Breed Improvement technology and Breed Multiplication Farm (v) Setting up of Veterinary Vaccine and Drugs Manufacturing facilities and (vi) Animal Waste to Wealth Management (Agri Waste Management).”

b) A new eligible entity has been included under clause 4 as clause 4 (f) in implementation guidelines:

Clause 4:

Following are the eligible entities for availing benefits under the AHIDF Scheme

a) Farmer Producer Organization (FPO)

b) Private companies

c) Individual entrepreneurs

d) Section 8 companies

e) Micro Small and Medium Enterprises

f) Dairy Cooperatives

c) Sub activities have also been added under clause 6.1.as clause 6.1.3, 6.1.4,6.1.5,6.1.6. and in clause 6.4.4 (d). Accordingly, the changes have been mentioned below:

I. Under Clause 6.1- Dairy Processing:

6.1.3. Marketing infrastructure (including bulk-vending system, Parlor, deep freezer, cold storage etc.)

6.1.4 Milk transportation system (Refrigerated van/ insulated tankers etc.)

6.1.5 Research & Development (lab & equipment, new technology, innovations, product development etc.)

6.1.6 Renewable energy infrastructure/ plants, trigen/ energy efficiency infrastructure. In all three cases, the energy generated or saved must be for the benefit of running cost of the existing plant/ BMC unit/ Milk collection unit etc.

II. Insertion of Clause 6.4.4 and point no. (d): Integrated projects for poultry farm and poultry feed with related activities

d) Other changes such as inclusion of clause 7 pertains to Lending Agencies have also been added.

Insertion of Clause 7: Lending agencies: Following agencies may be considered to seek loan for assistance under AHIDF scheme:

a. Scheduled Bank(s)

b. National Cooperative Development Corporation (NCDC)

c. National Bank for Agriculture and Rural Development (NABARD)

d. National Dairy Development Board (NDDB)

e) Insertion of modified clause 8.3 which is 7.3 in existing guidelines:

Interest subvention will not be allowed for the loan sanctioned for procurement of land, working capital, pre-operative expenses, margin money for working capital, interest during construction (IDC), procurement/acquisition of existing infrastructure, old machineries, and vehicle for personal use.

f) Insertion of modified clause 8.4 which is 7.4 in existing guidelines:

For any proposal received under the scheme, the term loan sanction date should be the scheme notification date i.e., 24.06.2020.

g) New clause Insertion 8.5

The sunset date of AHIDF will be 31.03.2033 and repayment may spill over till 2033-34.

h) Modification in chapter 9 which is chapter 8 in existing guidelines:

Interest Subvention and Lending Rate of Interest

9.1.1. 3% for all the projects sanctioned in erstwhile AHIDF scheme prior to 31.03.2023 to be continued as per erstwhile AHIDF guidelines.

9.1.2. However, the projects which were sanctioned under DIDF will continue to avail benefit of 2.5% interest subvention for all the projects sanctioned on before 31.03.2023. Henceforth new sanction made after 1.04.2024 will avail 3% Interest Subvention under the new realigned AHIDF Scheme.

9.2 Lending Rate of Interest:

The Lender shall fix the rate of interest as per their existing system of calculation as per the RBI guidelines. However, the rate of interest should not exceed at 200 basis points plus External Benchmark Based Lending Rate (EBLR)/ Marginal Cost of Funds based Lending Rate (MCLR), as applicable or equivalent rates for the Eligible Entities whose project cost are falling within MSME defined ceilings. The Rate of interest to be fixed by scheduled banks/ lending institutions for other than MSME could be based on commercial interest rate of Banks

9.3 Other terms and conditions:

9.3.1 Department of Animal Husbandry and Dairying (DAHD) will transfer the interest subvention amount directly to lending agency

9.3.2 Initially the Department will pay interest subvention amount upfront to the lending agency for the first year based on the demand from the lender. The Banks Concerned will transfer the funds received under the scheme to the loan account of beneficiary within 3 days of receipt. Interest subvention from the 2nd year onwards would be released based on the non-NPA borrowers’ entitlement claimed by the lending agency every year in advance

9.3.3 Interest subvention will not be provided for defaulter(s) at any point of time for repayment and, the lender is free to take actions as per their guidelines. No interest subvention will be provided for the duration an account is NPA.

i) Modification in chapter 10 which is chapter 9 in existing guidelines:

10.1.2. (9.1.2 (Existing guidelines)) Department of Animal Husbandry and Dairying will pay to NABSanrakshan Trustee Pvt Ltd (NTPL) as per the demand raised by NTPL based on the coverage of project for Credit Guarantee by the concerned banks.

Clause 10.1.4. (9.1.4 (Existing guidelines) The Credit Guarantee will be provided to MSME and Dairy cooperatives.

Clause 10.1.5. (9.1.5 of existing guidelines) The detailed guidelines along with the features of the Credit Guarantee Fund managed by NABSanrakshan Trustee Company Pvt. Ltd. can be accessed from their portal  at (https://www.nabsanrakshan.org/)

New clause 10.1.6.

All the lending agencies intend to avail guarantee shall be on boarded on the NABSanrakshan Trustee Pvt Ltd (NTPL) portal for getting credit guarantee coverage as per credit guarantee guidelines.

j) Modification in chapter 11 which is chapter 10 in existing guidelines:

Funding Mechanism

11.1. Release of Interest subvention: Based on the claims of lending agency for the non-NPA projects, Department of Animal Husbandry and Dairying will transfer the interest subvention amount directly to the lending agency.

11.2. The lending agencies may utilize their available financial resources to lend the Eligible Entities.

k) Modification in chapter 12 which is chapter 11 in existing guidelines: Loan Disbursement

12.1.1 The remaining credit available under the merged AHIDF will be made available for the borrowers by the lender. The credit will continue to be disbursed by the lending agency as per their policies in compliance to the RBI guidelines for three years up to 2025-26 i.e., up to 31.03.2026. However, the lender can disburse the sanction projects approved on or before 31.03.2026 but not beyond 31.03.2027.

l) Modification in chapter 15 which is chapter 14 in existing guidelines. Availability of land and Statutory Clearances

15.3 The projects having land on long term lease (minimum 10 years) may also be considered for financing under AHIDF. However, the lease period/ agreement should be of sufficient duration to secure the loan. In case of lease requisite, No Objection Certificate from the competent authority for mortgage to Bank may be obtained.

m) Modification in chapter 19 which is chapter 18 in existing guidelines.

19.5. The Applications which are approved for Interest subvention by PAC/PSC are eligible for Credit Guarantee Cover

n) Clause 20.3.1 in new guidelines (Clause 19.3.1 in existing guidelines):

20.3.1 Representative from National Dairy Development Board (NDDB) and National Cooperative Development Corporation (NCDC) will be the members in the Project Approval Committee.

Changes/Additions in composition of PAC

(xiii) Representative from NDDB (Addition)

(xiv) Representative from NCDC (Addition)

o) Modification in chapter 21 which is chapter 20 in existing guidelines: New Clause to be inserted [Clause 21.2.(iv)]

Project Management Unit -PMA will be involved in overall management of the merged scheme.

p) Modification in Clause 22.2 in new guidelines (21.2 in existing guidelines)

The Stakeholders like Indian Dairy Association (IDA), Compound Livestock Feed Manufacturers’ Associations (CLFMA), All India Livestock and Meat Exporters’ Association (AILMEA), Poultry Federation of India (PFI), Indian Federation of Animal Health (INFAH), State Government’s Livestock Corporation/Development Board, CII, FICCI, ASSOCHAM and others will be stakeholders in awareness creation for the scheme.

q) Addition in Annexure I – Indicative List of Statutory Clearances Registration Certificate of Cooperatives

r) Addition in Annexure II – Online Application Form

2. Name of eligible entity

f. Dairy cooperatives

Source: https://dahd.nic.in/sites/default/filess/ahidf/RevisedGuidelinesofAHIDFdt26032024.pdf