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New norms to rein in defaults in AHIDF dairy scheme

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The central government has specified measures to disincentivize defaults in the guidelines for the realigned Animal Husbandry Infrastructure Development Fund (AHIDF) Scheme. Interest subvention, which is up to three per cent, will not be provided for defaulters at any point of time for repayment, official sources told Bizz Buzz, adding that the lender is free to take actions as per their guidelines.

The guidelines, which were finalized a few days ago, stipulate that no interest subvention will be provided for the duration an account is a non-performing assets (NPAs).

Initially, the Department of Animal Husbandry & Dairying, under the Ministry of Fisheries, Animal Husbandry & Dairying, will pay interest subvention amount upfront to the lending agency for the first year based on the demand from the lender. The guidelines have mandated that the banks concerned will transfer the funds received under the scheme to the loan account of the beneficiary within three days of receipt.

Interest subvention from the second year onwards would be released based on the non-NPA borrowers’ entitlement claimed by the lending agency every year in advance.

The Cabinet Committee on Economic Affairs (CCEA) approved the AHIDF Scheme worth Rs15,000 crore in June 2020 to facilitate incentivization of investments in infrastructure for dairy, meat processing, value addition infrastructure, and animal feed plants in the private sector. The eligible beneficiaries were farmer producer organisations (FPOs), MSMEs, Section 8 companies, private companies, and individual entrepreneurs with a minimum 10 per cent margin money contribution by them.


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Fisheries, Animal Husbandry & Dairying Minister Parshottam Rupala launched the realigned AHIDF Scheme on February 14 for implementation for another three years. Dairy cooperatives were included in the list of beneficiaries.

According to the government, in the last three years, more than 5,000 project proposals were received under the scheme. Around 15 lakh jobs have been generated so far. The beneficiaries include small and marginal farmers as well as industries.


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