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 FY 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 Dfarms 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 lakh -10% of the outlay (Minimum)
  2. Back ended capital subsidy –25% of project cost for General category & 33.33% for SC/ST farmers

Implementing Agencies
NABARD will be the Nodal Agency for implementation of the scheme. Commercial Banks, Co-op Banks & Regional Rural & urban Banks, State Coop 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 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 locationsdistance between the boundaries of two such farms should be at least 500 m.

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 Sahiwar, Red Sindhi, Gir, Rathi etc /graded buffaloes upto 10 animals. (for SHGs, Cooperatives societies, Producer Companies unit size will be 2-10 animals/member) Rs 6.00 lakh for 10 animal unit-minimum unit size is 2 animals with an upper limit of 10 animals. 25% of project cost (33.3% for SC/ST farmers), as back ended capital subsidy. Subsidy shall be restricted on prorata basis to maximum of 10 animals subject to a ceiling of Rs. 15,000 per animal, (Rs 20,000 for SC/ST farmers) or actual whichever is lower. Beneficiaries may purchase animals of higher costs,
Rearing of heifer calves-cross bred, indigenous descript milch breeds of cattle and of graded buffaloes-upto 20 calves Rs 5.30 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 Shall be restricted on prorata basis to a maximum of 20 calf unit subject to a ceiling of Rs.6,600/- per calf
Vermi compost with milch animal unit ( to be considered with milch animals /small dairy farm and not separately Rs 22,000/- 25% of the project cost (33.33 % for SC / ST farmers) as back ended capital subsidy subject to a ceiling of Rs 5,500 (Rs 7300/- 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 project cost (33.3 % for SC/ST farmers) as back ended capital subsidy subject to a ceiling of Rs 65,000/- & Rs 50,000/- (Rs 86,600/- and Rs 66,600/- for SC/ST farmers) respectively for mobile/stationary clinicsorwhichever is lower
Dairy marketing outlet / Dairy parlour Rs 1.0 lakh/- 25% of the project cost (33.33% for SC / ST farmers) as back ended capital subsidy subject to a ceiling of Rs 25,000/-(Rs 33,300/- for SC/ST farmers) or actual whichever is lower

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