Dairy Entrepreneurship Development Scheme (DEDS)

“Dairy Entrepreneurship Development Scheme (DEDS)”

GoI changed mode of implementation from IFL to Capital subsidy w.e.f 01 Sept 2010, revised unit costs, included new components and changed the name to DEDS.

Objectives

To promote setting up of modern dairy farms for production of clean milk

To encourage heifer calf rearing To bring about structural changes in the

unorganized sector. To generate self employment and provide

infrastructure manly for unorganised sector

Who are eligible for assistance?

Farmers, Individual entrepreneurs, NGOs, Companies, Groups Public & Private Sector Undertakings Dairy cooperative societies, milk unions,

milk federations

What are the benefits?

25% of the outlay ( 33.33% for SC/ ST farmers) as back ended capital subsidy

No interest subsidy/ IFL Margin: 10% of the outlay (minimum) Effective Bank Loan: Balance portion,

minimum of 40% of the outlay.

Eligible activities (Dairy Sector)

Establishment of small dairy units – 10 animal units with modern equipments (Buffalo and crossbred cows) for milk production - upto Rs.5 lakh (minimum unit size: 2 animals)

Milch animals financed even in Operation Flood Areas also are eligible

Purchase of milking machines / Milkotesters / Bulk cooling units (upto 2000 liters capacity) – maximum 18 lakh.

Eligible activities – contd…..

Purchase of dairy processing equipments for manufacture of milk products – upto Rs.12 lakh

Establishment of dairy product transportation facilities and cold chain – upto Rs.24 lakh.

Cold storage facilities for milk and milk products – Rs.30 lakh

Establishment of private veterinary clinics – upto Rs.2.40 lakh for mobile and Rs.1.80 lakh for stationary clinics.

Eligible activities

Rearing of heifer calves – crossbred, indigenous descript milch breeds of cattle and of graded buffaloes – upto 20 calves : Rs.4.80 lakh for 20 calf unit – minimum unit size of 5 calves with an upper limit of 20 calves.

Vermicompost ( to be considered with milch animals and not separately): Rs. 20,000/-

Dairy marketing outlet / Dairy parlour: Rs.56000/-

How to get the assistance?

Eligible beneficiaries may identify specific activity

Bankable project to be prepared and submitted to the financing bank

‘Model Projects’ prepared by NABARD may be referred for guidance

Available in NABARD Website (www.nabard.org)

Contd….

Prospective borrowers may contact Commercial Banks / RRB / Cooperative Banks with bankable project

Banks to appraise the project and get themselves satisfied about the viability before sanction.

Bank has to sanction and release the first instalment and then apply to NABARD for sanction and release of eligible subsidy .

Banks will obtain security for loan as prescribed by RBI from time to time.

Role of NABARD

Fund placed with NABARD Project Sanction Committee (PSC) of

NABARD, RO shall examine proposals placed before it and sanction the subsidy .

Release of assistance will be subject to availability of funds from GoI.

Other issues

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.

Repayment schedules will be drawn on the total amount of the loan ( including subsidy) in such a way that the subsidy amount is adjusted after liquidation of net bank loan ( excluding susbsidy)

Other issues – contd….

NABARD provides refinance to banks on the bank-loan portion.

Rate of interest on refinance – as decided from time to time.

Utilization Certificate in the prescribed format (annexure II) shall be submitted by the participating bank to NABARD to the effect that the amount of subsidy received by them has been fully utilized and adjusted in the books of account within the overall guidelines of the scheme.

Target : 2012-13

Target: 2012-13: Rs.150 crore Achievement: (Rs.140 cr pending for want of

funds from GoI) Cumulative: Achievement: Rs.124 crore (29297 units)

THANK YOU