SCHEMES OF GOVERNMENT

• Operation Flood
• Schemes of NABARD
• National Co-operative
Development Corporation (NCDC)
 Sources of Finance
• Commercial Banks
• Regional Rural and Urban Banks
• State Co-operative Banks
• State Cooperative Agriculture and Rural
Development Banks

NABARD- National Bank for Agriculture and

Rural Development
 DAIRY ENTREPRENEURSHIP
DEVELOPMENT SCHEME

• The Department of Animal Husbandry,

Dairying and Fisheries (DAHD&F), GoI
• “Venture Capital Scheme for Dairy and
Poultry”: 2005-06
• The main objective- to extend assistance for
setting up small dairy farms and other
components to bring structural changes in the
dairy sector.
 Objectives of the scheme
• To promote setting up of modern dairy farms for
production of clean milk
• To encourage heifer calf rearing, thereby
conserving good breeding stock
• To bring structural changes in the unorganised
sector so that initial processing of milk can be
taken up at the village level itself
• To upgrade the quality and traditional technology
to handle milk on a commercial scale
• To generate self-employment and provide
infrastructure mainly for unorganised sector
 Beneficiaries of this scheme
• Farmers, individual entrepreneurs, NGOs, companies,
groups of organised and unorganised sectors, etc. Groups
of organised sector include Self-help Groups (SHGs), dairy
cooperative societies, milk unions, milk federations, etc.

• An individual will be eligible to avail assistance for all the

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 metres.
 PROCEDURE TO AVAIL LOANS
Sanction by banks
• The entrepreneurs shall apply to their banks for sanction of the project.
Annexure I:
ttps://www.nabard.org/auth/writereaddata/File/Annexure_1.pdf
• The bank shall appraise the project as per their norms and if found eligible,
sanction the total outlay excluding the margin, as the bank loan.
• The loan amount is then disbursed in suitable instalments depending on the
progress of the unit.
• After the disbursement of first instalment of the loan, the bank shall apply to
the concerned Regional Office of NABARD for sanction and release of subsidy.

Repayment
• Repayment Period will depend on the nature of activity and cash flow and will
vary between 3- 7 years.
• Grace period may range from 3 to 6 months in case of dairy farms to 3 years
for calf rearing units
• The recovery of loan will be based on net loan amount only. i.e. not including
subsidy
National Co-operative Development Corporation
Assistance from NCDC

• Financial assistance for the establishment of integrated dairy

projects
• An integrated project includes the establishment of a milk
chilling centre of 10,000 and milk processing plant of 50,000.
• It will also provide technical inputs for milk producers
organization, such as mobile veterinary care, artificial
insemination, etc. and will also formulate fodder
development programmes.
• The project cost includes the setting up of cattle feed plants
• NCDC assistance is available only in the areas outside the
Operation Flood.
 Procedure for NCDC's assistance
NCDC's assistance is routed through the state
government or the state co-operative bank for
a period of 14 years.
Societies interested in the NCDC scheme should
control the state Registrar of co-operative
societies (RCS) or the regional project office of
NCDC for necessary guidance. Application
formats are available at these offices.
 Societies that fulfill the terms and conditions should apply to
the state RCS in the prescribed manner. Advance copies of the
application should be sent to either NCDC's Head Office or Regional
Office.

A society's proposal should be accompanied by the State

Government's recommendation. The financial assistance should be
released after appraising the viability of the project by an expert
team. The size of the unit is determined on the basis of the
marketable surplus of milk in the area of its operation and the
potential of marketing of milk and milk products in the area.