Department of Animal Husbandry & Dairying on Thursday said it is implementing a credit guarantee scheme to facilitate inflow of fund to MSMEs engaged in livestock sector.
The department, which is under the Ministry of Fisheries, Animal Husbandry and Dairying, is implementing the Credit Guarantee Scheme under Animal Husbandry Infrastructure Development Fund (AHIDF). The scheme is aimed to strengthen credit delivery system and facilitate smooth flow of credit to the Micro, Small & Medium Enterprises (MSMEs) engaged in livestock sector without hassles of collateral security. “For operationalising the scheme, the department has established a Credit Guarantee fund Trust of Rs 750 crore, which will provide credit guarantee coverage up to 25 per cent of the credit facilities extended to the MSMEs by the eligible lending institutions,” an official statement said.
The credit guarantee scheme facilitates access to finance for un-served and under-served livestock sector, making availability of financial assistance from lenders to mainly first-generation entrepreneurs and underprivileged section of society, who lack collateral security for supporting their ventures. “The main objective of the Credit Guarantee Scheme is that the lender should give importance to project viability and secure the credit facility purely on the basis primary security of the assets financed,” it added. The establishment of credit guarantee fund trust was approved under a Rs 15,000 crore-Animal Husbandry Infrastructure Development Fund (AHIDF) for incentivising investments by individual entrepreneurs, private companies, MSMEs, Farmers Producers Organisations (FPOs) and Section 8 companies.
The investment is to establish (i) the dairy processing and value addition infrastructure, (ii) meat processing and value addition infrastructure, (iii) Animal Feed Plant, (iv) Breed Improvement technology and Breed Multiplication Farm, (v) Animal Waste to Wealth Management (Agri Waste Management), and (vi) Setting up of Veterinary Vaccine and Drugs Manufacturing facilities. The key features of AHIDF scheme is interest subvention of 3 per cent and loan up to 90 per cent of the total project cost from any Scheduled Bank, National Cooperative Development Corporation (NCDC).
1 Comment