#Agriculture ■ First ever “Credit Guarantee Scheme” for Lives | UPSC Environment Ecology Agriculture Notes

#Agriculture

■ First ever “Credit Guarantee Scheme” for Livestock Sector launched for rebooting rural economy by leveraging MSMEs-

The Department of Animal Husbandry & Dairying, Ministry of Fisheries, Animal Husbandry and Dairying is implementing the Credit Guarantee Scheme under Animal Husbandry Infrastructure Development Fund (AHIDF)

It aims to strengthen the credit delivery system and facilitate smooth flow of credit to the MSMEs engaged in the Livestock sector without hassles of collateral security.

● The Scheme:

DAHD has established a Credit Guarantee fund Trust of Rs. 750.00 crores for operationalizing the scheme

It will provide credit guarantee coverage up to 25% of the credit facilities extended to the MSMEs by the eligible lending institutions.

It facilitates access to finance for the un-served and under-served livestock sector

It makes financial assistance available from lenders to mainly first-generation entrepreneurs and under-privileged sections of society, who lack collateral security for supporting their ventures.

Objective: The lender should give importance to project viability and secure the credit facility purely on the basis primary security of the assets financed.

● Credit Guarantee Fund Trust:

It was approved under the Prime Minister’s AtmaNirbhar Bharat Abhiyan stimulus package of Rs.15000 crores “Animal Husbandry Infrastructure Development Fund” (AHIDF)

It is for incentivizing investments by individual entrepreneurs, private companies, MSMEs, Farmers Producers Organizations (FPOs) and Section 8 companies

This is done to establish

the dairy processing and value addition infrastructure.

meat processing and value addition infrastructure.

Animal Feed Plant.

Breed Improvement technology and Breed Multiplication Farm

Animal Waste to Wealth Management (Agri Waste Management)

Setting up of Veterinary Vaccine and Drugs Manufacturing facilities

● Animal Husbandry Infrastructure Development Fund:

Its key feature is the establishment of a Credit Guarantee Fund Trust of Rs. 750.00 Crores

DAHD has formed a trust with NAB Sanrakshan Trustee Company Private Limited (a wholly owned subsidiary of NABARD) for the establishment of a Credit Guarantee Fund Trust for extending the credit guarantee to MSME under AHIDF scheme.

Established in March 2021, it is the Nation’s first ever fund trust under Credit guarantee scheme of AHIDF in the agriculture and Animal Husbandry sector.

This would increase the number of MSME units getting benefits of AHIDF scheme and strengthen the ecosystem for the collateral-free credit from the banks.

● Key Features of AHIDF scheme:

Interest Subvention of 3%

Loan up to 90% of the total project cost from any Scheduled Bank, National Cooperative Development Corporation (NCDC)

● Credit Guarantee Portal:

It has been developed as a rule based B2B portal

It has implemented the enrollment of eligible lending institutions under Credit Guarantee Scheme, issuance/renewal of Credit Guarantee Cover and Settlement of Claims.

● Prelims Takeaway:

Animal Husbandry Infrastructure Development Fund

Credit Guarantee Fund Trust

SOURCE - PIB