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Credit Guarantee Scheme for Livestock Sector

IAS Current Affairs

Credit Guarantee Scheme for Livestock Sector
Source: PIB
GS III: Economics of animal-rearing

Overview

  1. News in Brief
  2. Credit Guarantee Scheme for Livestock Sector
  3. Animal Husbandry Infrastructure Development Fund
Why in News ?

To provide collateral-free loans for MSMEs in the livestock industry, the Ministry of Fisheries, Animal Husbandry, and Dairy has established the first-ever Credit Guarantee Scheme under the Animal Husbandry Infrastructure Development Fund (AHIDF).

Details of Credit Guarantee Scheme for Livestock Sector

  • Implementing Agency 
    • Department of Animal Husbandry & Dairying (DAHD), Ministry of Fishries, Animal Husbandry and Dairying is implementing
      Photo by Emil Mathew on Unsplash

      the Credit Guarantee Scheme

    • It is under Animal Husbandry Infrastructure Development Fund (AHIDF)
  • What is the Aim?
    • Strengthen credit delivery system and facilitate smooth flow of credit to the Micro, Small & Medium Enterprise (MSMEs) engaged in Livestock sector
    • Without hassles of collateral security.
    • Boost the overall rural economy through strengthening the Livestock sector
  • Fund
    • DAHD has established a Credit Guarantee fund Trust.
    • It will provide credit guarantee coverage up to 25% of the credit facilities.
  • Who will get the benefits?
    • Finance for un-served and under-served livestock sector.
    • Those who lack collateral security for supporting their ventures.
    • Interest subvention of 3% on loans obtained from Scheduled Banks or National Cooperative Development Corporation (NCDC).
    • Borrowers can avail up to 90% of the total project cost as a loan.

Credit Guarantee Fund Trust

  • NABSanrakshan Trustee Company Private Limited, a wholly owned subsidiary of NABARD.
  • It has a fund of of Rs. 750.00 crores.
  • Credit guarantee coverage up to 25% of the credit facilities
  • Nation’s first ever fund trust under Credit guarantee scheme of AHIDF in the agriculture and Animal Husbandry sector.
  • Would exponentially increase the number of MSME units getting benefits of AHIDF scheme.
  • Strengthen the ecosystem for the collateral-free credit from the banks.

Animal Husbandry Infrastructure Development Fund

  • It is a stimulus package under Atma Nirbhar Bharat Abhiyan.
  • Setting up of Rs. 15000 crore.
  • Companies
    • Incentivizing investments by individual entrepreneurs, private companies, MSME, Farmers Producers Organizations (FPOs) and Section 8 companies to establish
      1. Dairy processing and value addition infrastructure
      2. Meat processing and value addition infrastructure
      3. Animal Feed Plant.
  • Objectives
    • To help increasing of milk and meat processing capacity.
    • Increased price realization for the producer.
    • Make available quality milk and meat products.
    • Protein enriched quality food requirement.
    • Develop enterpreneurship and generate employment.
    • Increased export of milk and meat sector.
    • Quality animals feed to the cattle, buffalo, sheep, goat, pig and poultry at affordable price.

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