Cabinet approves setting up of Rs 15000 crore “AHIDF”

Establishment of Animal Husbandry Infrastructure Development Fund (AHIDF) has been approved by the Union Cabinet chaired by Prime Minister Shri Narendra Modi. The Animal Husbandry Infrastructure Development Fund will be worth Rs 15000 crore and provide incentivisation of investments in the formation of such infrastructure for dairy as well as meat processing, and value addition infrastructure and establishment of animal feed plant in the private sector.

Boost your Banking Awareness Knowledge with Adda247 Live Batch: WARRIOR 2.0 | Banking Awareness Batch for SBI, RRB, RBI and IBPS Exams

Farmer Producer Organizations (FPOs), MSMEs, Section 8 Companies, Private Companies and individual entrepreneur would be the eligible beneficiaries under the scheme According to the scheme, minimum 10% margin money would be contributed by the beneficiary while scheduled banks would be responsible for the availability of balance 90% of the loan component. Interest subvention of 3% would be provided by the Government of India to the eligible beneficiaries. There will be 2 years moratorium period for the principal loan amount while 6 years repayment period thereafter.

A Credit Guarantee Fund of Rs 750 crore would be set up by the Government of India. This fund would be managed by National Bank for Agriculture and Rural Development (NABARD) and will provide Credit guarantee to those sanctioned projects which are covered under MSME defined ceilings. Guarantee Coverage would be provided upto 25% of Credit facility of borrower.

Both of the above facilities will ensure availability of capital to meet upfront investment required for the above projects and also help enhance overall returns/ pay back for investors.

Important takeaways for all competitive exams:

  • Union Minister of Animal Husbandry, Dairying and Fisheries: Giriraj Singh.

Find More National News Here