Department of Animal Husbandry and Dairying, Government of Indiais implementing “National Programme for Dairy Development (NPDD)” scheme across the country since Feb-2014 with an objective of creating/strengthening of infrastructure for production of quality milk, Procurement, Processing and Marketing of Milk and Milk products.

The scheme has been restructured/realigned in July2021. The restructured NPDD Scheme will be implemented from 2021-22 to 2025-26 with a total outlay of Rs.1790 crore. The restructured scheme has two components:                 

Component'A' focuses towards creating/strengthening of infrastructure for quality milk testing equipment as well as primary chilling facilities.

Component'B' (Dairying through Cooperatives-DTC) provides financial assistance from Japan International Cooperation Agency (JICA) for creation of necessary dairy infrastructure, providing market linkages for the produce in villages and for strengthening of capacity building of stake-holding institutions from village to State level.

Financial Progress:

Component A:

191 projects in 28 States and 2 Union Territory have been approved with the total cost of Rs.3053.03 crore (Central Share Rs.2321.22 crore) from 2014-15 to 2022-23 (30.06.2023).  A total sum of Rs.1795.60 crore hasbeen released for implementation of these projects up to 18.07.2023. An amount of Rs.1321.53crore has been utilized under the approved projects.

Component B:

In total 22 projects has been approved with a total project cost of Rs 1130.64 Cr having loan component of Rs705.54 Cr, grant component of Rs 329.70 Cr and Producer Institutions (PIs) share of Rs 95.37 Cr. A total grant of Rs 9.30 Cr has been released to National Dairy Development Board for further disbursement to PIs for the implementation of the projects.

Government of India (GoI) has approved the “Dairying through Cooperatives-Key to Sustainable livelihood” project as Component B of the National Programme for Dairy Development (NPDD) scheme. The project will be implemented from 2021-22 to 2025-26 and will continue till 2027-28 with the total outlay of Rs. 1568.28 Crore comprising Rs.924.56 Crore as an Official Development Assistance(ODA) loan from Japan International Cooperation Agency (JICA), Rs.475.54 Crore as Government of India’s (GoI) contribution and Rs.168.18Croreas State/Participating Institution’s (PI) contribution.

The major objective of the project is to increase sales of milk and dairy products by increasing farmers' access to organized market, upgrading dairy processing facilities and marketing infrastructure and enhancing the capacity of producers owned institutions, there by contributing to increase in returns to milk producers in the project tarea”. The project is being implemented in 9 states namely Bihar, Uttar Pradesh, Punjab, Rajasthan, Madhya Pradesh, Andhra Pradesh, Telangana, Uttarakhand and West Bengal. The schemes upports the  establishment Milk Processing Facilities and Manufacturing Facilities (milk & milk products and cattle feed).

Dairy Processing & Infrastructure Development Fund (DIDF) :

Dairy Processing & Infrastructure Development Fund (DIDF) was launched in December 2017 with the major objective of creation/strengthening of Milk Processing, Value addition & chilling facilities for Dairy Co-operative, Multi State Dairy Cooperative, Milk Producer Companies (MPC), NDDBs subsidiaries, Self Help Groups (SHGs) and      Farmer Producer Organisations (FPOs) registered under State Cooperative and Companies Act with total outlay of Rs.11,184 Crore (loan component of Rs.8,004 Crore).  DIDF is to be implemented from 2018-19 to2022-23 and repayment period upto 2030-31with spill over to first quarter of the FY2031-32.Under the scheme, NABARD raise the fund from market and disburse this loan to NDDB/NCDC which is then disbursed by them to End Borrowers. GoI provide 2.5% interest subvention to NABARD apart from assisting the establishment of processing plant for milk and milk product, the scheme also assists Cattle feed/feed supplement plants.

4 projects with total outlay of Rs.420.19 Cr (Loan-Rs.317.92Cr) has been approved by Department. Under the Entrepreneurship Development Programme of National Livestock Mission (NLM) scheme there is a provision for establishing animal feed and fodder processing units.

In NLM-EDP, this department has approved a total of 36 projects with a project cost of Rs.31.5 Crores and subsidy of Rs.13.82 crores under the category of feed and fodder development. The details are as under:

State Name	No of DAHD approved proposals under NLM EDP (Feed & fodder development)	Sum of Cost of Project (Rs in Cr)	Sum of Amount of Subsidy (Rs in Cr)
Haryana	1	1.13	0.50
Madhya Pradesh	29	22.92	10.37
Punjab	1	0.91	0.46
Telangana	4	4.00	2.00
Uttar Pradesh	1	2.55	0.50
Grand Total	36	31.52	13.82

 

Under the scheme of Animal Husbandry Infrastructure Development Fund (AHIDF) there is a provision of setting up of/upgradation of animal feed plants.

The eligible entities are FPOs, MSMEs, Individual Entrepreneurs, Private Companies and Section 8 companies.

Under the scheme eligible entities are eligible for benefit of 3% interest subvention over a period of eight years for setting up/upgradation of projects falling under any of the six approved categories. MSMEs are also eligible for availing credit guarantee coverage to the tune of 25% of the total borrowings. The scheduled banks will provide credit up to 90% to the Eligible Entities for the establishment of projects in any of the eligible categories under the Scheme.

Till date, the department has approved 95 projects of animal feed plant under the scheme with cumulative project cost of INR 1602.71 cr and cumulative term loan of INR 1098.53

This information was given by Shri Parshottam Rupala, Union Minister of Fisheries, Animal Husbandry & Dairying in a written reply in Lok Sabha today.

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