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Dairy Entrepreneurship Development Scheme

Background

Dairy/Poultry Venture Capital Fund scheme was started in December 2004 with an outlay of Rs. 25 Crore.  This scheme has been fragmented into two separate scheme viz. Dairy Venture Capital Fund & Poultry Venture Capital Fund from the financial year 2008-09.

During June 2010, the Dairy Venture Capital Fund scheme was revamped to Dairy Entrepreneurship Development Scheme to make it more effective through  wider coverage, enhanced component-wise outlays and by including new components for assistance under the scheme. The new modified scheme DEDS was started from 01.09.2010.

Objectives of the Scheme

  1. Generate self-employment and provide infrastructure for dairy sector
  2. Setting up modern dairy farms for production of clean milk
  3. Encourage heifer calf rearing for conservation  and development of  good breeding stock
  4. Bring structural changes in unorganized sector so that initial processing of milk can be taken up at village level.
  5. Upgradation of traditional technology to handle milk on commercial scale
  6. Provide value addition to milk through processing and production of milk products.

Pattern of assistance

  1. Entrepreneur contribution (Margin) for loans beyond 1.6 lakh -10% of the outlay (Minimum)
  2. Back ended capital subsidy –25% of the project cost for General category and 33.33% for SC/ST farmers
  3. Effective Bank Loan - Balance portion

Implementing Agencies

National Bank for Agriculture & Rural Development (NABARD) will be the Nodal Agency for implementation of the scheme. Commercial Banks, Co-operative Banks and Regional Rural and urban Banks, State Cooperative Agriculture and Rural Development bank and such other institutions which are eligible for refinance from NABARD will implement the scheme. The scheme is open to organized as well as unorganized sector.

Target group/beneficiaries

Eligible beneficiaries of the scheme are

  • Farmers, individual entrepreneurs and groups of unorganized and organized sector. Group of organized sector, includes self-help groups, dairy cooperative societies, Milk unions, milk federation, Panchayati Raj institutions, etc.
  • An applicant will be eligible to avail assistance for all components under the scheme but only once for each component.
  • More than one member of a family can be assisted under the scheme provided they set up separate units with separate infrastructure at different locations. The distance between the boundaries of two such farms should be at least 500 m.
  • Priority to be given to project being implemented in cluster mode covering dairy farmers/women in SHGs/Cooperatives/Producer companies
  • Priority to be givent to SC/ST/women/landless/small and margina/BPL farmers and also farmers in drought areas.

Components and pattern of assistance provided under this scheme

S.NO Component Unit Cost Pattern  of Assistance
1 Establishment of
small dairy units with crossbred cows/ indigenous descript mulch cows like Sahiwar, Red Sindhi, Gir, Rathi etc /graded buffaloes
upto 10 animals. ( for SHGs, Cooperatives societies ,
Producer Companies unit size will be 2-10 animals per member)
Rs 7.00 lakh for 10 animal  unit — minimum unit size is 2 animals with an upper limit of 10 animals. 25% of the project cost (33.33% for SC / ST farmers), as back ended capital subsidy. Subsidy shall be restricted on prorata basis to a.maximum of 10 animals subject to a ceiling of Rs.17,500 per animal,
(Rs 23,300 for SC/ST farmers) or actual whichever is  lower. Beneficiaries may purchase animals of higher costs, however, the subsidy will be restricted to the above ceilings.
2 Rearing of heifer calves — cross bred, indigenous descript milch breeds of cattle and of graded buffaloes — upto 20 calves Rs 9.70 lakh
for 20 calf unit — with an upper limit of 20 calves
25% of the project cost (33.33 % for SC / ST farmers) as back ended capital subsidy Subsidy shall be restricted on prorata basis to a maximum of 20 calf unit subject to a ceiling of Rs.12,100/- per calf (Rs. 16,200 for SC/ST farmers) or actual whichever is lower
3 Vermi compost with milch animal unit ( to be considered with milch animals/small dairy farm and not separately Rs 25,200/- 25% of the project cost (33.33 % for SC / ST farmers) as back ended capital subsidy subject to a ceiling of Rs 6,300 (Rs 8400/- for SC/ST farmers) or actual whichever is lower.
4 Purchase of milking machines
/milkotesters/bulk milk cooling units (upto 5000 lit capacity)
Rs 20 lakh 25% of the project cost (33.33 % for SC / ST farmers) as back ended capital subsidy subject to a ceiling of Rs 5.0 lakh (Rs 6.67 lakh for SC / ST farmers) or actual whichever is lower
5 Purchase of dairy processing
equipment-for manufacture of indigenous milk products
Rs 13.20 lakh 25% of the project cost (36.33 %for SC/ST farmers) as back ended capital subsidy subject to a ceiling of Rs 3.30 lakh (Rs 4.40 lakh for SC/ST farmers) or actual whichever is lower
6 Establishment of
dairy product transportation
facilities and cold chain
Rs 26.50 lakh 25% of the project cost (33.33 % for SC / ST farmers) as back ended capita! Subsidy subject to a ceiling of Rs 6.625 lakh (Rs 8.830 lakh for SC/ST -farmers) or actual whichever is lower
7 Cold storage facilities
for milk and milk products
Rs 33 lakh 25% of the project cost (33.33 % for SC / ST farmers) as back ended capital subsidy subject to a ceiling of Rs 8.25 lakh (Rs 11.0 lakh for SC/ST farmers) or actual whichever is lower
8 Establishment of private veterinary clinics Rs 2.60 lakh or mobile clinic and Rs 2.0 lakh for stationary clinic 25% of the project cost (33.33 % for SC / ST farmers) as back ended capital subsidy subject to a ceiling of Rs 65,000/- and Rs 50,000/- (Rs 86,600/- and Rs 66,600/- for SC/ST farmers) respectively for mobile and stationary clinics or actual whichever is lower
9 Dairy marketing outlet / Dairy parlour Rs 3.0 lakh/- 25% of the project cost (33.33% for SC / ST farmers) as back ended capital subsidy subject to a ceiling of Rs 75,000/-(Rs 1,00,000- for SC/ST farmers) or actual whichever is lower
Note:- The subsidy amount will be rounded off to the nearest 100 Rupees Beneficiaries may submit project proposals without any limit. However, the back ended capital subsidy under the scheme will be restricted to the above ceilings, The Banks will verify  the costs of components admissible under the scheme based on the cost norms notified by NABARD.

For complete guidelines, click here.

Source: NABARD



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