The Livestock Infrastructure Development Fund will be extended till the 26th financial year.

The government has approved the continuation of AHIDF launched in 2020-21 with a contribution of Rs 29,610.25 crore from the Infrastructure Development Fund (IDF) till 2025-26.

“The system encourages investments in milk processing and product diversification, meat processing and product diversification, animal feed factory, breeding company, animal waste management (agricultural waste management), animal vaccine and drug production facilities.” the government said in a statement.

Under AHIDF, the Center will provide a 3 percent interest subsidy for eight years, including a two-year moratorium on up to 90 percent loans from all commercial banks and the National Cooperative Development Corporation (NCDC), NABARD and NDDB. Credit at a subsidized rate is available to both individuals and private companies including Farmer Producer Organizations (FPOs), Micro, Small and Medium Enterprises (MSME) and Dairy Cooperatives. Funding is essentially intended for the modernization and strengthening of dairy enterprises.

Credit Guarantee

The government also provides credit guarantee to SMEs and dairy cooperatives up to 25% of the credit of ₹750 crore borrowed from the credit guarantee fund. To date, AHIDF has increased milk processing capacity by 141.04 lakh liters per day (LLPD), 79.24 lakh tonnes (LT) of fodder processing capacity and 9.06 liters of meat processing capacity, representing an increase of 2-4 percent. the total processing capacity of the milk, meat and feed industries. About 15000000 farmers have benefited directly/indirectly and 20,00,000 farmers could continue to benefit.

After adding new features like technology-assisted breeding facilities, strengthening veterinary medicine and vaccination units and animal waste management, the scheme offers immense potential to improve the infrastructure of the livestock sector, the government said.

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