Page 31 - Banking Finance September 2023

ARTICLE

Availability of land, water bodies and statutory On the basis of eligibility as per the scheme guidelines,
Dept. of Animal husbandry will mark the application
clearance
eligible/ returned/ rejected. The eligible applications
Loan under AHIDF shall not be provided for acquisition
will move to respective banks as mentioned on the
of land in any manner such as purchase, transfer, lease,
application form by the applicant. The Schedule Bank
accession/addition etc. required for implementation of
after due appraisal will upload the sanction of the
the identified project activities.
project for approval of interest subvention through
The Eligible Entity are required to acquire necessary online mechanism.
land (in case of non-availability of land with them) at
The Project Management Agency set up in the
their own cost and complete all processes associated
Department of Animal Husbandry and Dairying shall
with land acquisition, before submission of the proposal
scrutinize the application, evaluate and appraise the
for finance under AHIDF.
proposal sanctioned by the Scheduled Banks for
The projects having land on long term lease (minimum approval of interest subvention under AHIDF by Project
30 years) may also be considered for financing under Approval Committee.
AHIDF. However, the lease period/ agreement should
The Project Approval Committee will meet regularly and
be of sufficient duration to secure the loan. In case of
consider the proposals placed before it and accord
lease requisite No Objection Certificate from the
approval to projects costing up to Rs. 50 cr. for grant of
competent authority for mortgage to Bank may be
interest subvention.
obtained.
The Project Approval Committee shall recommend the
The Eligible Entities shall provide documentary project above Rs. 50 cr. to the Project Sanctioning
evidence/certificate of availability of requisite land and Committee (PSC) after screening and evaluation of the
water bodies free from all encroachment and projects.
encumbrances.
The Bank shall send a copy of loan sanction to Project
Confirmation with necessary documentary evidence on Sanctioning Committee/ Project Approval Committee
availability of land and water bodies and statutory prior to such projects being considered for interest
clearances (wherever necessary) shall be clearly subvention under AHIDF.
indicated in the DPR/Self Contained Proposal.
The Project Approval Committee/ Project Sanctioning
Committee will also recommend for Credit Guarantee
Formulation of detailed project report on each project falling within the definition of MSME
(DPR) once the loan is sanctioned by the Bank.
Concessional financing under the AHIIDF is based on Detailed All the projects will be assessed by the Committee based
Project Reports (DPRs) / Self Contained Proposals. Detailed on the Eligibility criteria of the Eligible Activities
projects especially for infrastructure and large magnitude proposed, Bank's approval, geographical preferences,
projects shall be formulated based on- MSME certification, sectorial preferences, demand and
Identification of suitable site, economic viability.
Necessary engineering and socio-economic
Conclusion
investigations and surveys,
Investment through AHIDF would not only leverage several
Planning and designing of the facilities and
times more private investment but would also motivate farmers
Model studies wherever required etc.
to invest more on inputs thereby driving higher productivity
The Eligible Entities shall submit the DPR/self-Contained leading to increase in farmers income. The measures approved
Proposal in triplicate copies today through AHIDF would also help in direct and indirect
livelihood creation for about 35 lakh persons.
Submission of the project proposal
The Eligible Entity will submit the proposal with Detailed References:
Project Report through ahidf.udyamimitra.in Portal Department of Animal Husbandry & Dairying |
developed by Small Industries Development Bank of Government of India
India (SIDBI). https://ahidf.udyamimitra.in/index.html

BANKING FINANCE | SEPTEMBER | 2023 | 31