To ensure that Dairy Cooperatives remain competitive for the sustained benefit of farmers, the Government of India had announced creation of Dairy Processing and Infrastructure Development Fund under NABARD with a total corpus of Rs. 8000 crore over a period of 3 years (i.e. 2017-18 to 2019-20), in the Union Budget of 2017-18.
Funding will be in the form of interest bearing loan, which will flow from National Bank for Agriculture and Rural Development (NABARD) to National Dairy Development Board (NDDB) / National Cooperative Development Corporation (NCDC) and in turn to eligible End Borrowers.
The scheme have been designed with the following objectives:
The scheme will be implemented across the country.
The components of the scheme are as under:
The End Borrowers of the scheme are Milk Unions, State Dairy Federations, Multi-state Milk Cooperatives, Milk Producer Companies and NDDB subsidiaries meeting the eligibility criteria under the project. The Loan Component would be 80% (maximum) and the end borrower's contribution - 20 % (minimum).
The end borrowers will get the loan @ 6.5% per annum. The period of repayment will be 10 years with initial two years moratorium. The respective State Government will be the guarantor of loan repayment. Also for the project sanctioned if the end user is not able to contribute its share; State Government will contribute the same
With the scheme investment, 95,00,000 farmers in about 50,000 villages would be benefitted. Additional Milk processing capacity of 126 lakh litre per day, milk drying capacity of 210 MT per day, milk chilling capacity of 140 lakh litre per day, installation of 28000 Bulk Milk Coolers (BMCs) along with electronic milk adulteration testing equipment and value added products manufacturing capacity of 59.78 lakh litre per day of milk equivalent shall be created.
Initially 39 MUs the Department will start the project with 39 profit making milk unions of 12 States, other Milk Cooperatives which become eligible on the basis of their net worth and profit levels, in subsequent years, to apply for loan under DIDF.
Employment Generation Potential
The implementation of DIDF scheme will generate direct and indirect employment opportunities for skilled, semi-skilled and unskilled manpower. Direct employment opportunities for about 40,000 people will be created under the scheme through project activities like expansion & modernisation of existing milk processing facilities, setting up of new processing plants, establishment of manufacturing facilities for value added products and setting up of Bulk Milk Coolers (BMCs) at village level.
About 2 lakh indirect employment opportunities will be created on account of expansion of milk and milk product marketing operations from existing Tier I, II & III to Tier IV, V & VI cities/towns etc. This will lead to deployment of more marketing staff by Milk Cooperatives, appointment of distributors and opening of additional milk booths/retail outlets in urban/rural locations. With the increase in milk procurement operations of the Milk Cooperatives, there would be generation of additional manpower employment for supervision of increased milk procurement operations, transportation of milk from villages to processing units, and increased input delivery services like Artificial Insemination (AI) services, Veterinary Services, etc.
For more information, visit https://www.nddb.org/didf/didf-in-brief
Source : NDDB
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