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Animal Husbandry Infrastructure Development Fund (AHIDF)

At a glance

AHIDF is a loan-based scheme, not a grant scheme. It was set up in June 2020 under the Atmanirbhar Bharat package with a Rs 15,000 crore fund to build private infrastructure in animal husbandry — dairy plants, meat processing, animal feed factories, and breeding farms. In February 2024, the Cabinet continued the scheme under the Infrastructure Development Fund with a total outlay of Rs 29,610.25 crore covering 2021-22 to 2025-26, and opened it to dairy cooperatives as well. Instead of a subsidy, the government pays part of your loan interest and backs part of your loan with a credit guarantee.

Who is eligible

  • Individual entrepreneurs and private companies
  • MSMEs and Farmer Producer Organisations (FPOs)
  • Section 8 (not-for-profit) companies
  • Dairy cooperatives (added under the 2024 continuation)
  • The borrower must put in a minimum share of the project cost (at least 10%)

Benefits

  • Loan up to 90% of project cost from scheduled banks or NABARD/NDDB/NCDC.
  • 3% interest subvention — the government pays 3 percentage points of your loan interest, for up to 8 years including a moratorium (repayment holiday) of up to 2 years.
  • Credit guarantee from a Rs 750 crore fund managed by NABARD, covering up to 25% of the borrower's credit for MSME-category projects — so smaller players with little collateral can still get loans.

Eligible project types: dairy processing and value addition; meat processing; animal feed plants; breed multiplication farms; animal waste-to-wealth (biogas, organic fertiliser); and veterinary vaccine or drug production units.

How to apply

  1. Prepare a Detailed Project Report (DPR) for your unit.
  2. Apply online at ahidf.udyamimitra.in and select your preferred lender.
  3. The bank appraises and sanctions the loan; DAHD's project approval committee clears the interest subvention.
  4. Subvention is credited against your loan account as you repay.

Documents required

  • KYC: Aadhaar, PAN, company/FPO registration papers where applicable
  • Detailed Project Report with cost estimates
  • Land documents or lease for the project site
  • Bank account details and financial statements (for existing businesses)
  • Confirm the lender's own checklist — banks may ask for more

Key dates & status

  • Approved: June 2020 (Rs 15,000 crore)
  • Continued: February 2024, total outlay Rs 29,610.25 crore, up to 2025-26
  • Applications accepted on a rolling basis through the portal

Common questions

Q: Is this free money like a subsidy? No. AHIDF is a loan scheme. Your benefit is cheaper interest (3% less) and a credit guarantee — you must repay the loan.

Q: Can a small farmer use it? It suits people building processing or feed units, not household animal rearing. For small farm units, look at the National Livestock Mission instead.

Q: Can I set up a plant for cattle feed? Yes — animal feed plants of all sizes are a core eligible activity.

Q: How long do I get the interest benefit? Up to 8 years of the repayment period, including the moratorium.

Sources: https://dahd.gov.in/en/schemes/programmes/ahidf, https://ahidf.udyamimitra.in/scheme-instruction.html, https://www.dahd.gov.in/sites/default/files/2023-11/ImplementationGuidelinesAHIDF.pdf, https://sbi.bank.in/web/agri-rural/agriculture-banking/government-schemes/ahidf. Last verified: 2026-08-07. Always confirm current details on the official portal before acting.