Department of Animal Husbandry and Dairying initiated Animal Husbandry Infrastructure Development Fund with a scheme outlay of Rs.15000 crore under the Atmanirbhar Bharat Abhiyan stimulus package
Under National Bank for Agriculture and Rural Development (NABARD), the Government of India has initiated and sponsored various schemes among which Dairy Entrepreneurship Development Scheme (DEDS) holds a vital place. Under The Department of Animal Husbandry, Dairying and Fisheries (DAHD&F), the Government launched the ‘Venture Capital Scheme for Dairy and Poultry’ to assist in setting up small dairy farms and other components in the dairy sector.
In 2010, the name of such Venture Capital Scheme for Dairy and Poultry was modified to Dairy Entrepreneurship Development Plan after taking into account feedback from farmers, state governments, and banks (DEDS).
So if you want to know more about this scheme then in this article you will get to know about it in detail along with some additional information.
|Name||Dairy Entrepreneurship Development Scheme (DEDS)|
|Launched By||National Bank – Rural & Agriculture Development (NABARD)|
|Approval Date||April 2017|
|Registration Date||1st April to 30th September|
|Aim||Increasing milk production in the country via dairy management programs.|
Loan subsidy Under Dairy Entrepreneurship Development Scheme
- Under the new scheme the Government has certainly offered a marginal amount for entrepreneurs’ contribution for the loan amount that is more than Rs 1 lakh will be around 10 percent of the overall project cost.
- 25 percent subsidy rate will be offered as back-ended capital of the entire project cost in the candidate belongs to the General category.
- In case the candidate belongs to the ST or SC category then he or she will be offered around a 33 percent subsidy rate on the same. Apart from this subsidy ceiling rates will be finalized based on rates provided by NABARD.
- Bank loans shall be calculated in a well-balanced proportion depending on the regulations provided by the Reserve Bank of India.
Below is a tabular representation of a list of components that can be financed along with unit cost and pattern of assistance:
|Component||Unit Cost||Pattern of Assistance|
|Establishment of small dairy units with crossbred cows/ indigenous descript milch cows like Sahiwal, Red Sindhi, Gir, Rathi, etc / graded buffaloes up to 10 animals||Rs 5.00 lakh for 10 animal unit – minimum unit size is 2 animals with an upper limit of 10 animals||25% of the outlay (33 .33 % for SC / ST farmers, ) as back-ended capital subsidy subject to a ceiling of Rs 1.25 lakh for a unit of 10 animals ( Rs 1.67 lakh for SC/ST farmers,). The maximum permissible capital subsidy is Rs 25000 ( Rs 33,300 for SC/ST farmers )for a 2 animal unit. Subsidy shall be restricted on a pro-rata basis depending on the unit size|
|Rearing of heifer calves – cross bred, indigenous descript milch breeds of cattle and of graded buffaloes – upto 20 calves||Rs 4.80 lakh for 20 calf unit – the minimum unit size of 5 calves with an upper limit of 20 calves||25% of the outlay (33.33 % for SC / ST farmers) as back-ended capital subsidy subject to a ceiling of Rs 1.20 lakh for a unit of 20 calves ( Rs 1.60 lakh for SC/ST farmers). The maximum permissible capital subsidy is Rs 30,000 (Rs 40,000 for SC/ST farmers) for a 5 calf unit. Subsidy shall be restricted on a prorata basis depending on the unit size|
|Vericompost (with milch animal unit .To be considered with milch animals and not separately )||Rs 20,000/-||25% of the outlay (33.33 % for SC / ST farmers)as back ended capital subsidy subject to a ceiling of Rs 5,000/- ( Rs 6700/- for SC/ST farmers,).|
|Purchase of milking machines /milkotesters/bulk milk cooling units (upto 2000 lit capacity)||Rs 18 lakh||25% of the outlay (33.33 % for SC / ST farmers) as back ended capital subsidy subject to a ceiling of Rs 4.50 lakh ( Rs 6.00 lakh for SC/ST farmers).|
|Purchase of dairy processing equipment for the manufacture of indigenous milk products||Rs 12 lakh||25% of the outlay (33.33 % for SC / ST farmers) as back-ended capital subsidy subject to a ceiling of Rs 3.00 lakh ( Rs 4.00 lakh for SC/ST farmers).|
|Establishment of dairy product transportation facilities and cold chain||Rs 24 lakh||25% of the outlay (33.33 % for SC / ST farmers) as back-ended capital subsidy subject to a ceiling of Rs 6.00 lakh ( Rs 8.00 lakh for SC/ST farmers).|
|Cold storage facilities for milk and milk products||Rs 30 lakh||25% of the outlay (33.33 % for SC / ST farmers) as back-ended capital subsidy subject to a ceiling of Rs 7.50 lakh ( Rs 10.00 lakh for SC/ST farmers).|
|Establishment of private veterinary clinics||Rs 2.40 lakh for a mobile clinic and Rs 1.80 lakh for stationary clinic||25% of the outlay (33.33 % for SC / ST farmers) as back-ended capital subsidy subject to a ceiling of Rs 60,000/- and Rs 45,000/- ( Rs 80,000/- and Rs 60,000/- for SC/ST farmers) respectively for mobile and stationary clinics|
|Dairy marketing outlet / Dairy parlor||Rs 56,000/-||25% of the outlay (33.33 % for SC / ST farmers) as back-ended capital subsidy subject to a ceiling of Rs 14,000/- (Rs 18600/- for SC/ST farmers).|
Source: Department of Animal Husbandry, Dairying, and Fisheries, Ministry of Agriculture, Government of India & NABARD’s official website
Objectives of DEDS
- To promote establishing modern dairy farms for milk production.
- To upgrade traditional and quality technology to handle milk commercially.
- To encourage the development of modern dairy farms and produce pure milk.
- To encourage heifer calf rearing, thus, conserving good breeding stock.
- To provide infrastructure and generate self-employment for the unorganized sector.
- To promote milk products’ processing and milk production for providing quality milk products.
- To bring structural changes in the unorganized sector to start initial milk processing at the village level.
Eligibility of DEDS
The following entities can apply for assistance under the DEDS:
- Individual entrepreneurs.
- Groups of unorganized sectors.
- Groups of organized sectors, including milk unions, Self-Help Groups (SHGs), milk federations, cooperative dairy societies, etc.
- An entity is eligible to avail assistance under all components of the scheme, but it can apply only once for each component.
- More than one family member can avail assistance under the scheme, provided they establish separate units with separate infrastructure at various locations. The distance between the two units should be at least 500 meters.
Rate of Interest
The rate of interest levied on the loans is set as per the bank and RBI’s guidelines. The bank has an option to charge interest on the entire loan amount up till the subsidy is received. The interest rate will be charged from the date of receipt of the subsidy.
Pattern of assistance
- Effective Bank Loan – Balance portion
- Entrepreneur’s contribution (Margin) for loans beyond Rs. 1 lakh – 10% of the amount (Minimum)
- Capital subsidy – 25% of the project cost for the General category
- Capital subsidy – 33.33% for SC/ST farmers
How to Apply for DEDS?
Once you meet the eligibility criteria, approach your nearest Chief Animal Husbandry Officer, Block Veterinary Officer, or Veterinary Assistant Surgeon along with supporting documents.
Important Documents Required for DEDS Application
You need to submit the following documents to apply for the DEDS scheme under NABARD:
- An affidavit as proof of being unemployed and a non-defaulter of any financial institution
- Documents related to the land to be mortgaged if the loan amount exceeds ₹1 lakh.
- A photocopy of your ration card, caste certificate
- Your three recent passport-sized photographs
- Degree certificate of BVSc&AH in case of Mobile or Stationary Veterinary Clinic.
- A photocopy of driving license if the unit is a refrigerated vehicle
Who Are the Implementing Agencies of DEDS?
The nodal agency to implement DEDS under NABARD is National Bank for Agriculture & Rural Development (NABARD).
Also, note the list of financial institutions which qualify for refinancing from this scheme:
- Urban, rural and regional banks
- State Cooperative Agriculture and Rural Development Banks and State Cooperative Banks
- Other eligible financial institutions for refinancing from NABARD.
- Approximately 70 million farmers are associated with the Indian dairy sector. It contributes one-third of rural household income. However, difficulty in processing milk products, complex supply chain, etc., are among the few challenges this industry faces. Thus, DEDS aims to reduce such challenges and boost this sector for its unparalleled growth.