Animal Husbandry Infrastructure Development Fund (AHIDF)

October 16, 2025

Animal Husbandry Infrastructure Development Fund (AHIDF)

Introduction

The Animal Husbandry Infrastructure Development Fund (AHIDF) is a central Government of India fund set up in 2020 under the Atma Nirbhar Bharat package to spur investment in livestock value-chain infrastructure across India. It provides concessional support – loans, interest subvention and a credit-guarantee mechanism – to build and modernize dairy processing, meat processing and animal-feed plants. AHIDF was launched to fix clear gaps: low processing capacity, weak market links for small and unorganised producers, poor feed quality and limited value-addition that hold down farmer incomes and restrict access to affordable animal-source nutrition. Eligible applicants include individual entrepreneurs, MSMEs, Farmer Producer Organisations (FPOs), private companies and Section-8 companies; dairy cooperatives were later brought in under scheme extensions. The fund originally had an outlay of ₹15,000 crore, loans can finance up to 90% of project cost, and a ₹750-crore credit-guarantee supports MSMEs. In plain words, AHIDF is an agriculture scheme that helps farmers, small processors and entrepreneurs access finance, add value to produce, improve product quality and reach larger markets. For clear information on benefits, eligibility and the application process, consult the official AHIDF portal and scheme guidelines.

Overview of the Scheme

The Animal Husbandry Infrastructure Development Fund (AHIDF) was launched by the Department of Animal Husbandry & Dairying, under the Ministry of Fisheries, Animal Husbandry & Dairying, Government of India (central scheme). It was first approved in 2020 under the Atma Nirbhar Bharat stimulus, with an initial corpus of ₹15,000 crore.

Implementing agencies and structure:

The principal implementing agency is the Department of Animal Husbandry & Dairying (DAHD) at the central level.
The scheme works through scheduled banks (including NABARD in the extended phase) that lend to eligible entities.
A Project Management Agency (PMA) is engaged to monitor applications, progress and help coordinate between states and banks.
For credit guarantee support, NABARD (via a guarantee trust) is involved in providing guarantee cover for eligible MSME projects.

Funding pattern & key numbers:

The original fund corpus was ₹15,000 crore, to be disbursed over 3 years from 2020-21.
Under extensions approved in 2024, AHIDF now operates as part of a larger Infrastructure Development Fund (IDF) with revised outlays (≈ ₹29,610 crore).
For projects under MSME norms, a credit guarantee of up to 25% of the term loan is available.
Scheduled banks may finance up to 90% of the project cost for eligible entities.

Sectors / components covered:
Eligible infrastructure and value-addition components under AHIDF include:

Dairy processing and value addition (milk, cheese, UHT, powder etc.)
Meat processing and associated value-addition units
Animal feed plants (production & processing)
Breed improvement / multiplication farms, vaccine & drug manufacturing, waste-to-wealth (agri waste) units, wool processing

Current status:

The scheme is ongoing.
In 2024, the Dairy Infrastructure Development Fund (DIDF) was merged into AHIDF under a realigned scheme framework.
As of August 2025, over 402 projects are approved under AHIDF, covering diverse sub-sectors and geographies.
The scheme is administered via revised SOPs, with the expanded scope and budget under the IDF alignment.

Tiny example: Suppose an entrepreneur wants to build a small meat processing unit in a rural district. Under AHIDF, a bank can finance up to 90% of that unit’s cost (if the project is viable), and the entrepreneur can apply through the Udyami Mitra / bank link, with DAHD and the PMA overseeing approval and interest subsidy.

Objectives

Increase milk and meat processing capacity and product diversification, so that unorganized rural producers gain access to organized markets.
Improve price realization for producers by strengthening infrastructure and value chains.
Provide quality milk and meat products to domestic consumers.
Meet the country’s need for protein-rich food, thereby helping reduce malnutrition.
Promote entrepreneurship and create employment in the livestock and allied sectors.
Promote exports and increase the export share of milk and meat products.
Enable availability of quality concentrated animal feed (for cattle, buffalo, sheep, goats, pigs, poultry) at affordable prices.

Key Features / Benefits

Interest Subvention of 3 %
Eligible entities get a 3 % subsidy on interest for term loans under AHIDF. (Example: If a bank charges 8 % interest, the effective cost becomes 5 % after subvention.)
High Loan Financing (Up to 90 %)
Banks may finance up to 90 % of the project cost for eligible infrastructure projects (excluding land, old machinery, working capital).
Credit Guarantee Cover (Up to 25 %)
A Credit Guarantee Fund of ₹750 crore is set up (managed by NABARD) to provide guarantee cover up to 25 % of the loan for MSME projects.
Long Repayment Period (Up to 8–10 years)
Projects can be repaid over up to 8 years (including 2 years moratorium), sometimes extended to 10 years based on project size and repayment capacity.
Wide Sector Coverage / Infrastructure Support
AHIDF supports setting up or upgrading:
• Dairy processing & value-addition units
• Meat processing & value-addition units
• Animal feed plants
• Breed improvement, multiplication farms
• Animal waste-to-wealth / agro-waste management
• Veterinary drugs & vaccine manufacturing units
Inclusion of Cooperatives and Dairy Farmers
After merging with the Dairy Infrastructure Development Fund (DIDF), dairy cooperatives and dairy farmers are now eligible under AHIDF to avail benefits.
Scale & Reach Benefits
The scheme has already approved 366 projects worth ~₹10,367.90 crore.
It has aided in creating direct employment (~60,000 people) and benefited ~2,60,000 farmers.
Support Only for New / Upgrade Projects
AHIDF does not fund land acquisition, working capital, old machinery, or vehicles for personal use; it focuses on assets and infrastructure.

Eligibility Criteria

To apply under AHIDF, you must satisfy who can apply and submit required documents. Following are the eligibility rules:

Who Can Apply / Eligible Entities & Criteria

Farmers / Individuals

Must be Indian citizens.
Should have legally valid land or usufruct rights for the project site (or long-term lease agreement).
Must be able to furnish Aadhaar, land records, identity proof, and other project documentation.

Self-Help Groups (SHGs)

Must be formally registered (under relevant statutes or local body).
Must be active and bank-linked with an operational account.
All member details and SHG registration certificate need to be submitted.

Farmer Producer Organisations (FPOs)

Must be registered as a Producer Company or equivalent under law.
Should have a minimum number of member farmers (as per their registration norms).
Must demonstrate active operations / business dealings in agriculture / livestock.

Entrepreneurs / Startups / MSMEs / Private Companies / Section 8 Companies

Must have formal registration (e.g., as MSME, UDYAM registration, company incorporation, GST as applicable).
Must plan a new project or upgrade existing infrastructure under the scheme’s categories.
Should not have already commercially started operations before the scheme’s notification (in some cases).

Special / Additional Categories (as per amended guidelines)

With the merger of DIDF and AHIDF, dairy cooperatives and dairy farmers have also become eligible under the scheme. (PIB)
Certain projects falling under MSME limits can avail credit guarantee cover under the scheme.

Not Eligible / Exclusions

Projects that involve acquisition of existing infrastructure, old machinery, working capital, vehicles for personal use, pre-operative expenses, or land purchase are excluded from interest subvention.
Projects must not have become commercially operational before the date of scheme notification.

Mandatory Documents & Papers

To prove eligibility, applicants must typically submit:

Aadhaar card / identity proof
Land ownership documents, lease agreement or title deed
Project plans, Detailed Project Report (DPR), cost quotations
Bank account details, bank passbook / statement
Registration certificates (SHG registration, FPO registration, company/MSME/UDYAM)
Statutory clearances as per state laws (e.g. NOC from land authority, local body, pollution control board, trade licence)
Other project-specific documents (e.g. technology license, environmental clearances)

Application Process

Visit the official portal
Go to UdyamiMitra’s AHIDF section at https://ahatdf.udyamimitra.in (or login page at https://uatapi.udyamimitra.in/AHIDF/Login) dahd.gov.in+3uatapi.udyamimitra.in+3dahd.gov.in+3
On that portal, click “Apply for Loan under AHIDF”.
Register / Login
- Enter your mobile number and request an OTP to verify identity.
- After OTP verification, create your profile and log in.
Fill the Application Form
In the portal, you will see fields such as:
- Beneficiary / applicant details (name, address, entity type)
- Project site / land / farm details (location, land ownership or lease, GPS / GIS coords)
- Component / activity selection (e.g. dairy processing, feed plant, meat processing, waste-to-wealth, breed improvement)
- Bank / lender details (which bank branch you want, account, IFSC)
- Project cost breakup, margin contribution, timelines, etc.
Upload Required Documents
You must attach scanned or digital copies of:
- Identity proof (Aadhaar, PAN, etc.)
- Land ownership / lease documents, land records or lease agreement
- Detailed Project Report (DPR) with technical & financial details
- Quotations, bills or cost estimates for machinery / civil works
- Statutory clearances (licenses, environmental, local body as needed)
- Bank account details, last 6 months bank statements, KYC etc.
Submit Application & Get Acknowledgment
After filling and uploading everything, click Submit. The portal will generate an application ID / acknowledgment which you can use to track status.
Initial Screening (LAF Screening)
The DAHD (Department of Animal Husbandry & Dairying) will carry out an initial check (called LAF screening) of basic eligibility criteria on your application.
The outcome may be: Eligible, Returned for corrections, or Rejected.
Bank Appraisal / Field Inspection
If your application passes screening, your selected lending bank will take over. The bank may do:
- Detailed financial appraisal
- Field visit / physical inspection of the site
- Verification of documents and cost estimates
Loan Sanction & Interest Subvention Approval
- The bank sanctions the loan (if it finds the project viable).
- The bank will upload the sanction letter and interest subvention claim on the portal.
- DAHD / Govt reviews and approves the interest subsidy portion.
- Projects up to ₹50 crore are processed by Project Approval Committee (PAC); above ₹50 crore go to Project Sanctioning Committee (PSC).
Disbursement of Loan / Assistance Release
Once all approvals are given:
- The bank disburses funds in phases tied to project milestones.
- The central government transfers the interest subvention directly to the bank (usually via PFMS mapping).
Post-Approval Monitoring & Utilization Certification
After funds are disbursed, you may need to submit progress reports, utilization certificates, and periodic inspections. The use of funds will be monitored to ensure compliance.

Offline / Assisted Route

While the scheme is primarily online, rural applicants can approach Common Service Centres (CSCs) which are linked to the portal for facilitation.
You may also approach the district/state Animal Husbandry Department office, or the scheduled bank branch (nominated bank) for guidance or help in uploading the application.

Tips to Avoid Common Mistakes

Match names carefully: Use the same name across identity, land records and bank account to avoid rejection.
Check document quality: Poor scans, blurry images or missing pages often lead to rejection.
Submit full DPR & cost details: Incomplete project report or missing cost breakup delays approval.
Watch deadlines: Submit within the scheme window; delays may disqualify you.
Track status via portal: Use your application ID, check messages / remarks in time to correct issues.

Challenges or Limitations

While the Animal Husbandry Infrastructure Development Fund (AHIDF) offers strong financial support for farmers, FPOs, and agripreneurs, applicants often face some common challenges and limitations during the process. Knowing these in advance – and preparing accordingly – can make the journey smoother and faster.

Delay in Application Verification → Keep Records Ready
Verification of land documents, identity proofs, and project ownership can take time, especially when multiple departments are involved. To avoid this, keep your land records updated, ensure that your Aadhaar and PAN details match, and prepare clear digital copies of all ownership or lease documents before applying.
Document Mismatch or Incomplete DPR → Double-Check Before Uploading
Many applications are delayed or rejected because uploaded files don’t match project details or are incomplete. Before final submission, review all uploaded documents, cross-check your Detailed Project Report (DPR) for signatures, cost details, and technical data, and make sure file formats meet portal requirements.
Limited Awareness and Technical Guidance → Seek Local Support
Small farmers and first-time entrepreneurs may struggle with preparing DPRs or understanding bank appraisal norms. You can overcome this by visiting your district Animal Husbandry Office or contacting Common Service Centres (CSCs) for free assistance. Some states also have dedicated nodal officers who can help clarify doubts.
Longer Bank Appraisal Timelines → Stay in Touch with the Bank
Banks often take additional time for field inspections and financial viability checks. Keep in regular contact with your bank manager, respond promptly to any document requests, and follow up politely to ensure your proposal moves forward within expected timelines.
Portal or Technical Issues → Use CSC or Helpline Support
Online application portals may face downtime or file upload errors. In such cases, applicants can visit nearby CSC centres or use the Udyami Mitra helpdesk to resolve issues. Submitting applications during non-peak hours can also help avoid portal traffic delays.
Limited Budget Allocation → Apply Early in the Financial Year
Since AHIDF operates under annual fund allocations, there can be delays or pauses once the financial ceiling is reached. To avoid missing out, submit your application early in the year, ideally before the second quarter, and track official updates ondahd.gov.in.
Seasonal and Regional Constraints → Plan Projects Strategically
For livestock, feed, or dairy projects, weather or regional factors may affect construction and operations. Plan your project timeline around local seasons, and mention contingency measures (like shed design or water storage) in the DPR to strengthen your proposal.
Common Mistakes in Cost Estimates → Consult Experts
Incorrect or inflated cost estimates in DPRs can lead to rejections during financial appraisal. Always consult an experienced project consultant or veterinary officer to verify your figures before submission. A well-prepared cost sheet reflects credibility and improves sanction chances.

Government Support & Future Outlook

Under the National Livestock Mission (NLM), eligible projects may draw balance funding or support via AHIDF for infrastructure components.
In the Rashtriya Gokul Mission (RGM) (for breed improvement), the guidelines encourage convergence with AHIDF when states propose infrastructure for breed multiplication farms.
Across DAHD schemes, there is a stated aim to “converge activities of Department of Animal Husbandry & Dairying and Department of Rural Development” (e.g. for fodder farms) in project planning.
The merger of Dairy Infrastructure Development Fund (DIDF) into AHIDF means dairy cooperatives and dairy farmers are now part of the same support umbrella.

Future Directions & Practical Benefits

By combining schemes and aligning support, a farmer or FPO can tap multiple benefits in one project. For example: setting up a dairy processing unit under AHIDF while using fodder support schemes or rural development grants strengthens both supply and demand sides.

As of February 2025, AHIDF had approved 366 projects worth ~ ₹10,367.90 crore, benefitting cooperatives, MSMEs, FPOs, and individual farmers. The scheme continues to expand its reach, especially after the merger with DIDF.

Conclusion

The Animal Husbandry Infrastructure Development Fund (AHIDF) is an important Central Government initiative that supports farmers, FPOs, SHGs, MSMEs, and entrepreneurs in building modern infrastructure for dairy, meat processing, and animal feed sectors. By improving value addition and market access, it helps livestock owners earn better incomes and generate rural employment. Those interested can check eligibility and apply online through the official portal at https://ahidf.udyamimitra.in or contact their nearest animal husbandry or agriculture office for guidance. The scheme’s benefits – including interest subvention and loan assistance – make it a valuable support tool for anyone planning livestock-based enterprises. Applicants should always verify the latest details, documents, and timelines on official sources before applying to avoid delays.

Explore detailed resources on this scheme and the full suite of programmes at ALL ABOUT AGRICULTURE. For one-on-one assistance, call us at +91 8484002628.

info@tapasyaenvision.com