Dairy Entrepreneurship Development Scheme

NABARD Norms Dairy Entrepreneurship Development Scheme

Dairy Entrepreneurship Development Scheme

▶ The 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 schemes viz. Dairy Venture Capital Fund & Poultry Venture Capital Fund from the financial year 2008-09.

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

Objectives of the Scheme

1. Generate self-employment and provide infrastructure for the dairy sector.
2. Setting up modern dairy farms for the production of clean milk.
3. Encourage heifer calf rearing for conservation and development of good breeding stock
4. Bring structural changes in the unorganized sector so that the initial processing of milk can be taken up at the village level.
5. Upgradation of traditional technology to handle milk on a commercial scale.
6. Provide value addition to milk through the 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 the 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 the implementation of the scheme. Commercial Banks, Co-operative Banks Regional Rural and urban Banks, State Cooperative Agriculture and Rural Development banks, and such other institutions which are eligible for refinancing from NABARD will implement the scheme. The scheme is open to organized as well as unorganized sectors.

Target group/beneficiaries

Eligible beneficiaries of the scheme are Farmers, individual entrepreneurs, and groups of the unorganized and organized sectors. 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 the two such farms should be at least 500 m. Priority is to be given to the project being implemented in cluster mode covering dairy farmers/women in SHGs/Cooperatives/Producer companies Priority is to be given to SC/ST/women/landless/small and marginal/BPL farmers and also farmers in drought areas.

Components and Pattern of assistance provided under this scheme

Component

Unit Cost

Pattern of Assistance

Establishment of small dairy units with crossbred cows/ indigenous descript mulch cows like Sahiwal, Red Sindhi, Gir, Rathi, etc /graded buffaloes up to 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.

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

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.

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

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

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

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

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

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

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