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OBJECTIVES

• To help increasing of milk processing capacity and product diversification thereby providing greater access for unorganized rural milk producers to organized milk market
• To make available increased price realization for the producer
• To make available quality milk for the domestic consumer
• To fulfill the objective of protein enriched quality food requirement of the growing population of the country and prevent malnutrition in one of the highest malnourished children population in the world
• Develop entrepreneurship and generate employment
• To promote exports and increase the export contribution in the milk sector

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FEATURES

• Interest subvention is 3% for all Eligible Entities.
• The interest subvention is applicable only up to a loan amount of ₹50 crore.
• Eligible units may also avail credit guarantee cover from CGTMSE scheme for the loan amount upto Rs 2.00 crores with the guarantee cover of maximum extent of 85% of loan amount.
• Maximum repayment Period is 8 years inclusive of moratorium of 2 years on principal amount.
• The Scheduled Bank shall ensure that maximum re-payment period should not exceed 10 years from the date of first disbursement inclusive of moratorium of 2 years on repayment of principal. The interest subvention will be provided only for 8 years including two years of moratorium.
• The rate of interest to be fixed by scheduled banks, however, the rate of interest should not exceed at 200 basis points plus External Benchmark Based Lending Rate (EBLR)
• Initially the Department will pay interest subvention amount in advance upfront to the lending bank for the first year based on the request of Scheduled Bank. Interest subvention from the 2nd year onwards would be released based on the non- NPA borrowers entitlement claimed by the Scheduled Banks every year in advance.
• The timing of subsidy payments is determined by the government, so we cannot provide an exact date for disbursement. However, we will keep you informed and support you throughout the process.

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CRITERIA

• The project under the AHIDF shall be eligible for loan up to 90% of the project cost.
• The beneficiary contribution in case of Micro and Small units as per MSME defined ceiling could be 10%.
• In case of Medium Enterprises as defined MSME, beneficiary contribution could go up to 15%
• The beneficiary contribution in other categories of enterprises could go up to 25% or more.
• A project will not get subsidy, if no drawls are made within six months from the date of sanction by the Scheduled Bank.
• Sanction would lapse if the Eligible Entity, fails to ground the project within a period of 12 months, from the date of sanction by the Scheduled Bank.
• Interest subvention will not be provided to such beneficiaries which are found to be defaulter at any point of time for repayment and also the bank is free to take any action as per its existing guidelines. No interest subvention will be provided for the duration an account is NPA even if the beneficiary returns to standard category
• DAHD will have authority for recall of interest subvention along with interest (10% per annum) within 30 days after a notice is issued under any of the following circumstances
  1. If project is not completed within approved project period including extension if any.
  2. If the assisted project stops its commercial operations within seven (7) years from the date of commencement of commercial production of the project.
  3. If during such period, it comes to the notice of the Department that interest subvention has been availed by manipulating / concealment of information of facts or that the interest subvention has been utilized for purposes other than those for which it was sanctioned
  4. In case beneficiary rescind / expire / abandon the project
• Interest subvention will not be allowed for the loan sanctioned for procurement of land, working capital, old machineries and vehicle for personal use.

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REQUIRED DOCUMENTS

Mandatory

1. Aadhaar Card
2. Pan Card
3. Applicant Photo
4. Land Document (Sale Deed / Rent Agreement / Possession Receipt)
5. Quotation
6. Udyami Registration
7. Bank statement for last 6 months
8. Education certificates

Will be provided by our expert team

1. CV of chief promoter
2. Detailed Project Report
3. Application submission to government

Optional

1. Training certificates
2. Latest state pollution control board consent / approval for the proposed unit

Required in some cases

1. Certificate of Incorporation (in case of company)
2. Certificate of Registration (in case of Co-Operatives)

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PROCESS FLOW :

• Submit the Loan Application Form (LAF) with project report and required documents on the portal.
• After submission, the Ministry screens the application for eligibility based on AHIDF guidelines and marks it on the portal if eligible.
• The lender reviews the application, conducts due diligence, and approves or reject the loan. The lender then uploads the sanction letter to the portal.
• Based on the lender's sanction letter, the Ministry approves the interest subvention and marks it on the portal.
• After meeting the sanction letter conditions, the lender disburses the loan to the beneficiary and requests the interest subvention from the Ministry.
• DAHD then releases the interest subvention directly to the lender.

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