Cabinet approves establishment of Animal Husbandry Infrastructure Development Fund

News: Cabinet has approved the setting up of Animal Husbandry Infrastructure Development Fund(AHIDF) worth Rs 15,000 crores.

Facts:

• Aim: To facilitate incentivisation of investments in the establishment of infrastructure in the animal husbandry sector.
• Beneficiaries: Farmer Producer Organizations (FPOs), MSMEs, Section 8 Companies, Private Companies and individual entrepreneurs with minimum 10% margin money contribution by them.The balance 90% would be the loan component to be made available by scheduled banks.
• Interest Subventions: The government will provide 4% interest subvention to eligible beneficiaries from the Aspirational Districts and 3% for beneficiaries from other Districts. 
• Duration: There will be a 2 years moratorium period for repayment of loan with 6 years repayment period thereafter.