National Program: Bovine Breeding & Dairy Development

The NPBBDD has been formulated by merging four ongoing schemes of the Department of Animal Husbandry, Dairying and Fisheries in the dairy sector. These are the National Project for Cattle and Buffalo Breeding (NPCBB), Intensive Dairy Development Programme (IDDP), Strengthening Infrastructure for Quality and Clean Milk Production (SIQ and CMP) and assistance to cooperatives. This has been done to integrate milk production and dairying activities in a scientific and holistic manner for attaining higher levels of milk production and productivity, to meet the increasing demand for milk in the country.

Components of the scheme
National Programme for Bovine Breeding and Dairy Development (NPBBDD) has the following three components.

  • National Programme for Bovine Breeding (NPBB)
  • National Programme for Dairy Development (NPDD) and
  • Rashtriya Gokul Mission.

Component-wise objectives of the scheme

National Programme for Bovine Breeding

  • To arrange quality Artificial Insemination services at farmers’ doorstep
  • To bring all breedable females under organized breeding through Artificial Insemination or natural service using germplasm of high genetic merits
  • To conserve, develop and proliferate selected indigenous bovine breeds of high socio-economic importance
  • To provide quality breeding inputs in breeding tracts of important indigenous breeds so as to prevent the breeds from deterioration and extinction

National Programme for Dairy Development

  • To create and strengthen infrastructure for production of quality milk including cold chain infrastructure linking the farmer to the consumer
  • To create and strengthen infrastructure for procurement, processing and marketing of milk and milk products
  • To create training infrastructure for training of dairy farmers
  • To strengthen dairy cooperative societies / Producers Companies at village level
  • To increase milk production by providing technical input services like cattle-feed, and mineral mixture etc
  • To assist in rehabilitation of potentially viable milk federations/unions;

Rashtriya Gokul Mission

  • To undertake breed improvement programme for indigenous cattle breeds so as to improve the genetic makeup and increase the stock.
  • To enhance milk production and productivity of indigenous bovines.
  • To upgrade nondescript cattle using elite indigenous breeds like Gir, Sahiwal, Rathi, Deoni, Tharparkar, Red Sindhi.
  • To distribute disease free high genetic merit bulls of indigenous breeds for natural service.

Area Of Coverage

  • NPBBDD will be implemented throughout the country.
  • NPBBDD will finance all components in those States where National Dairy Plan, Phase I is not being implemented i.e in the following States and regions: Delhi, Uttrakhand, Goa, Puducherry, Chhattisgarh, Jharkhand, Himachal Pradesh, Arunachal Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland, Sikkim, Tripura, Jammu & Kashmir, UT of Chandigarh, Daman & Diu, Lakshadweep, Andaman and Nicobar.
  • In the case of States covered by National Dairy Plan Phase-I (NDP-I) (i.e., Andhra Pradesh, Bihar, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, West Bengal), NPBBDD will cover those components that are not covered by NDP.

Target beneficiaries

Rural cattle and buffalo keepers irrespective of caste, class and gender.

Funding Pattern

  • NPBB – Provides for 100% grant-in-aid for all breeding related activities.
  • NPDD

NPDD will be implemented on 100% grant-in-aid basis for all components, except for the following activities:

  • Installation of bulk milk coolers
  • Milk processing plants
  • Milk powder plants
  • Rehabilitation Milk Unions/federations
  • For the first three components, viz- installation of bulk milk coolers, milk processing plants and milk powder plants, the funding pattern will be as under:
  • In NDP States-50% grant in aid.
  • For Milk Unions/Federations of North Eastern States and of hilly areas (more than 1000 meter above sea level) in hilly States of Jammu & Kashmir, Uttarakhand and Himachal Pradesh, central assistance would be 90%

For other non-NDP States:

  • For profit making EIAs-i.e. EIAs with accumulated profit of Rs One crore or more in the previous financial year – 75% grant in aid
  • For other EIAs-i.e. loss making EIAs and EIAs with accumulated profit of less than Rs One crore in the previous year-90%
  • For the component “Rehabilitation Plan” for assisting Milk Unions/federations to become more viable – 50% grant in aid.
  • Central assistance ceilings under NPDD component will be as under:
  • Central assistance for the project shall be restricted to Rs 15.00 crores per District.
  • For milk powder plant, central grant per district shall be limited to Rs.5 crores per district. NOTE: (i) For establishing supgrading milk powder plant of 30 metric tonnes capacity, surplus milk from a milk shed covering a cluster of districts may be pooled to ensure economic viability of the powder plant. (ii) Central grant for establishing milk powder plant shall be limited to dairy cooperatives only.
  • Assistance for “technical input services” shall be subject to a ceiling of 15% of the project cost.
  • Assistance for cattle induction shall be allowed only for Scheduled Castes, Scheduled Tribes and BPL families.
  • Cattle Induction shall be subjected to a maximum ceiling of 10% of the total project cost. NOTE: The Cost for this purpose of calculating subsidy shall include: i) cost of cattle, ii) animal insurance and iii) transportation cost.
  • The subsidy for Cattle Induction shall be restricted to 50% in all cases except for women farmers. NOTE: In the case of for women milk producers the subsidy element for cattle induction shall have a maximum ceiling of 75% cost.
  • Rehabilitation assistance as central grant shall be restricted to a ceiling of Rs.5 Crores.
  • Assistance for Working Capital shall be restricted to the total value of “21 days milk procurement”, as projected in the terminal year of the Project, by the End Implementing Agency.

Implementation agencies


  • State Implementing Agencies SIAs – State Livestock Development Boards
  • End Implementing Agencies EIAs – State Livestock Development Boards – State Animal Husbandry Departments, State Milk Federations
  • Participating Implementing Agencies PIAs – Other agencies having a role in Bovine Dev.:- CFSP&TI, CCBFs, ICAR, Universities., Colleges, NGOs


  • State Implementing Agencies SIAs — State Dairy Federations for States viz – Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Nagaland, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, Himachal Pradesh, Uttarakhand, West Bengal; and, Milk Unions in remaining States and UTs
  • End Implementing Agencies EIAs – District Milk Unions, New Generation Milk Producer Companies (which are functional for at least one full financial year ending on 31* March of the previous financial year — in respect of projects On РРР model), District Rural Development Authority/Zila Parishads District Mission Management Units (in respect of projects where there is no District Dairy Cooperative Unions).
  • Participating Agencies PIAs – Other agencies associated or affiliated to above SIAs or EIAs like NGOs, SHGs, Universities, Colleges, ICAR Institutes etc.


  • State Implementing Agencies (SIA’s) – State Livestock Development Boards
  • End Implementing Agencies (EIA’s) – State Livestock Development Boards, State Animal Husbandry Departments, State Milk Federations • CFSP&T, CCBFs
  • Participating Implementing Agencies (PIA’s) – Other agencies having a role in Bovine Development like, ICAR, Universities, Colleges, institutions. PIAs will submit Projects in financial and technical association with EIA’s

Source: Department of Animal Husbandry, Dairying and Fisheries, Ministry of Agriculture, Government of India

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