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), Government launched the ‘Venture Capital Scheme for Dairy and Poultry’ to provide assistance for setting up small dairy farms and other components in the dairy sector.
In 2010, after considering opinions and suggestions from farmers, state governments, and Banks; the name of the Venture Capital Scheme for Dairy and Poultry was changed to Dairy Entrepreneurship Development Scheme (DEDS).
Objectives of DEDS
- To create self-employment and build infrastructure for the dairy sector
- To encourage heifer calf rearing for the development and conservation of the good breeding stock
- To promote the unorganized sector in bringing milk processing at the village level
- To provide value addition to milk via the production and processing of milk products
- To set up the latest dairy farms for clean milk production
- To upgrade traditional technology to handle milk on a commercial scale
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.
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The repayment period varies between 3 – 7 years, however, it depends on the type of activity and cash flow.
- Single entrepreneurs
- Groups of unorganized and organized sectors
- Self-Help Groups (SHGs)
- Dairy Cooperative Societies
- Milk Unions and Federation
- Panchayat Raj institutions and many more
Note: The user can avail assistance only once for each component and more than 1 family member can get assistance if separate units are set up at different locations and the distance should be at least 500 meters between farms.
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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
National Bank for Agriculture & Rural Development (NABARD) shall be the Nodal Agency for the implementation of DEDS.
Entities eligible for refinancing from NABARD
- Commercial Banks
- Co-operative Banks
- Regional Rural Banks
- Rural Development Bank
- State Cooperative Agriculture Bank
- Urban Banks
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
Note: The Banks will verify the costs of components permissible under this scheme based on the cost norms advised by NABARD
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