Animal Husbandry Infrastructure Development Fund (AHIDF)

The Animal Husbandry Infrastructure Development Fund makes bank finance for livestock-sector infrastructure cheaper and less risky. The bank lends; the government pays part of the interest and guarantees part of the loan.

The Cabinet realigned and expanded the fund on 1 February 2024.

The headline terms

The Dairy Infrastructure Development Fund merger

Dairy cooperatives previously received 2.5% subvention under the separate Dairy Infrastructure Development Fund, which has now been merged into AHIDF. So dairy cooperatives now get 3% and are also eligible for the credit guarantee.

Stacking with other support

AHIDF can be combined with capital subsidy schemes from other ministries and with state-level schemes. That is worth pursuing — an interest subvention on a loan plus a state capital subsidy on the asset is a materially better deal than either alone.

Where it stands

265 projects were approved and ₹193.69 crore of interest subvention released in 2024-25, up from 180 projects and ₹108 crore in 2023-24.

• 3% per annum interest subvention on the term loan, payable for up to 8 years — this is the main benefit and, over 8 years, a substantial sum.
• Loans covering up to 90% of project cost, with no upper ceiling on the loan amount.
• Credit guarantee for up to 25% of the term loan through the scheme's Credit Guarantee Fund, which makes banks far more willing to lend without heavy collateral.
• Dairy cooperatives now get 3% (up from 2.5%) and are eligible for the credit guarantee.
• Can be dovetailed with capital subsidy schemes from other ministries and from the state.

Project types financed

The PIB release describes funding for:

• Dairy processing
• Meat processing
• Animal feed plants
• Breed improvement farms
• Modern poultry farms
• Veterinary vaccine manufacturing

The release does not publish the complete eligible-component list for the realigned scheme. Confirm your specific activity on the AHIDF portal or with your bank before preparing a project report.

Eligible entities are:

• Individuals
• Farmer Producer Organisations (FPOs)
• Dairy cooperatives
• Private companies
• Section 8 companies
• MSMEs

This is a broad list by the standards of farm schemes — an individual entrepreneur can apply, not only a cooperative or company.

• AHIDF is a loan facility with an interest subsidy. The principal is repaid to the bank; this is not a grant.
• You fund at least 10% of the project cost yourself, since the loan covers up to 90%.
• The credit guarantee covers up to 25% of the term loan, so the bank will still look for security for the balance.
• The official release does not state the repayment period or moratorium. Those terms decide your monthly outgo in the early years, so get them in writing from the bank before signing.
• The period recorded in the release runs to 2025-26. Confirm the current window before applying.

How to apply

1. Prepare a project report with costings, capacity and projected returns. Banks assess AHIDF proposals as term loans, so this document decides the outcome.
2. Apply through the online AHIDF portal, which routes the application to a participating bank.
3. On the application, state that you are seeking 3% interest subvention and credit guarantee cover under AHIDF.
4. Ask the bank, and get in writing: the repayment period, any moratorium, the security required beyond the credit guarantee, and the effective rate after subvention.
5. Separately, ask your state animal husbandry department about any state capital subsidy you can dovetail with this loan. Schemes can be stacked, and most applicants do not ask.

AHIDF application portal

• Detailed project report with costings and projections
• Land ownership or lease document for the project site
• Identity and address proof; registration documents for a company, FPO, cooperative or MSME
• Bank account statements and existing credit history
• Statutory clearances for the activity (pollution, licensing) as applicable