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DEDS

Introduction

The Dairy Entrepreneurship Development Scheme (DEDS) was launched in September 2010 with the objective of generating opportunities for self-employment in the country's dairy sector. This scheme is being implemented through NABARD, which provides financial assistance to commercially bankable projects with loans from commercial, cooperative, urban and rural banks with a back-end capital subsidy of 25% of the project cost to the general category beneficiaries and 33.33% of the project cost to the beneficiaries of SC & ST.

This is a significant scheme from the Department of Animal Husbandry, Dairy Manufacturing and Fisheries to generate self-employment opportunities in the dairy sector. It covers activities such as milk production enhancement, procurement, preservation, transportation, milk processing and marketing by providing back-end capital subsidy for bankable projects.

About Dairy Entrepreneurship Development Scheme

What are the objectives of the Dairy Entrepreneurship Development Scheme?
Who can apply for aid under the Dairy Entrepreneurship Development Scheme
What are the activities covered under the scheme?
What is the repayment tenure on the loan?
Dairy Entrepreneurship Development Scheme (DEDS) FAQs:

What are the objectives of the Dairy Entrepreneurship Development Scheme?

This programme was established with the following objectives:

Fostering the establishment of modern dairy farms to produce clean milk
To promote the rearing of heifer calves, thus maintaining healthy breeding stocks
To bring in systemic improvements in the unorganized sector in order to take up the initial milk processing at the village level itself
Upgrading the quality and traditional technology for commercially managing milk
To generate self-employment and mainly to provide infrastructure for unorganized sectors

Who can apply for aid under the Dairy Entrepreneurship Development 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 may avail assistance for all components of the scheme but only once for each component
Under the scheme, more than one member of a family can be assisted provided they set up separate units at different locations with separate infrastructure. The distance between two such farms' boundaries should be at least 500 metres.

What are the activities covered under the scheme?

Establishment of small dairy unit from 2 to 10 Milch animals
Rearing of heifers (up to 20 calves)
Vermi-Compost
Purchase of Milking Machines
Milkotesters & BMCs (up to 5000 litres capacity)
Purchase of Milk Processing equipment for manufacture of indigenous milk products
Transportation & Cold Storage facilities
Establishment of private veterinary clinics
Setting up of Milk Parlour for enhancement of milk production
Procurement, Cold chain and Transportation facilities
Processing and marketing of milk & milk products

Funding Pattern

Entrepreneurs’ contribution (margin)- Minimum 10% of the outlay towards bank loans more than Rs. 1 lakh and for loans up to Rs. 1 lakh, no margins is to be insisted.
Loan from Commercial, Cooperative, Urban and Rural Banks with a back ended capital subsidy of 25% of the project cost to the beneficiaries of general category and 33.33% of the project cost to SC & ST beneficiaries.
Balance portion will be through Bank Loans

Component wise funding details:

Component	Unit Cost	Pattern of Assistance
Establishment of small dairy units with crossbred cows/ indigenous descript mulch cows like Sahiwar, Red Sindhi, Gir, Rathi etc /graded buffaloes up to 10 animals. ( for SHGs, Cooperatives societies, Producer Companies unit size will be 2-10 animals per member)	Rs. 6.00 lakh for 10 animal units — minimum unit size is 2 animals with an upper limit of 10 animals.	25% of the project cost (33.33% for SC / ST farmers), as back ended capital subsidy. Subsidy shall be restricted on pro rata basis to a maximum of 10 animals subject to a ceiling of Rs.15,000 per animal, (Rs 20,000 for SC/ST farmers) or actual whichever is lower. Beneficiaries may purchase animals of higher costs, however, the subsidy will be restricted to the above ceilings.
Rearing of heifer calves — cross bred, indigenous descript milch breeds of cattle and of graded buffaloes — up to 20 calves	Rs. 5.30 lakh for 20 calf unit — with an upper limit of 20 calves	25% of the project cost (33.33 % for SC / ST farmers) as back ended capital subsidy shall be restricted on pro rata basis to a maximum of 20 calf unit subject to a ceiling of Rs.6,600/- per calf (Rs.8,800 for SC/ST farmers) or actual whichever is lower
Vermi-compost with milch animal unit ( to be considered with milch animals/small dairy farm and not separately	Rs. 22,000/-	25% of the project cost (33.33 % for SC / ST farmers) as back ended capital subsidy subject to a ceiling of Rs 5,500 (Rs 7300/- for SC/ST farmers) or actual whichever is lower.
Purchase of milking machines /milkotesters/bulk milk cooling units (up to 5000 lit capacity)	Rs. 20 lakh	25% of the project cost (33.33 % for SC / ST farmers) as back ended capital subsidy subject to a ceiling of Rs 5.0 lakh (Rs 6.67 lakh for SC / ST farmers) or actual whichever is lower
Purchase of dairy processing equipment-for manufacture of indigenous milk products	Rs. 13.20 lakh	25% of the project cost (36.33 %for SC/ST farmers) as back ended capital subsidy subject to a ceiling of Rs 3 30 lakh (Rs 4.40 lakh for SC/ST farmers) or actual whichever is lower
Establishment of dairy product transportation facilities and cold chain	Rs. 26.50 lakh	25% of the project cost (33.33 % for SC / ST farmers) as back ended capita! Subsidy subject to a ceiling of Rs 6.625 lakh (Rs 8.830 lakh for SC/ST -farmers) or actual whichever is lower
Cold storage facilities for milk and milk products	Rs. 33 lakh	25% of the project cost (33.33 % for SC / ST farmers) as back ended capital subsidy subject to a ceiling of Rs 8.25 lakh (Rs 11.0 lakh for SC/ST farmers) or actual whichever is lower
Establishment of private veterinary clinics	Rs. 2.60 lakh or mobile clinic and Rs 2.0 lakh for stationary clinic	25% of the project cost (33.33 % for SC / ST farmers) as back ended capital subsidy subject to a ceiling of Rs 65,000/- and Rs 50,000/- (Rs 86,600/- and Rs 66,600/- for SC/ST farmers) respectively for mobile and stationary clinics or actual whichever is lower
Dairy marketing outlet / Dairy parlour	Rs. 1 lakh	25% of the project cost (33.33% for SC / ST farmers) as back ended capital subsidy subject to a ceiling of Rs 25,000/-(Rs 33,300/- for SC/ST farmers) or actual whichever is lower

What is the repayment tenure on the loan?

Repayment Period will depend on the nature of activity and cash flow. It will vary between 3- 7 years. Grace period of 3 to 6 months is given in case of dairy farms and up to 3 years for calf rearing units.

How to apply?

Applicants approach their nearest Veterinary Assistant Surgeon, Block Veterinary Officer

or the Chief Animal Husbandry Officer of the concerned District to learn more about the scheme and apply.

What are the documents needed to apply for this loan?

Affidavit of being unemployed and not a defaulter of any bank or financial institutions
Land papers for mortgage if loan amount exceeds Rs.1 lakhs
Photocopy of category certificate if any
Copy of driving license if the unit is a Refrigerated vehicle
Degree certificate of BVSc&AH in case of Mobile/Stationery Veterinary Clinic.
Three passport size photographs
Photocopy of Ration card/State Subject

Linkage with Credit

Assistance under the scheme will be solely linked to credit and subject to project approval by qualified financial institutions. A list of the eligible financial institutions is given below:

Commercial Banks (CBs)
Regional Rural Bank (RRBs)
State Cooperative Banks (SCBs)
State Cooperative Agriculture and Rural Development Banks (SCARDBs)
Such other institutions, which are eligible for refinance from NABARD

Refinance Assistance from NABARD

Financial institutions eligible for refinance under the scheme are:

Commercial Banks
Regional Rural and Urban Banks
State Cooperative Banks
State Cooperative Agricultural and Rural Development Banks
Other Institutions, which are eligible for refinance for NABARD

Dairy Entrepreneurship Development Scheme (DEDS) FAQs:

1. What is the main objective of the DEDA scheme?

The primary objective of this scheme is to generate opportunities for self-employment in the country's dairy sector.

2. What are the activities covered by DEDS?

DEDS covers activities such as milk production enhancement, procurement, preservation, transportation, milk processing and marketing by providing back-end capital subsidy for bankable projects.

3. Who is the implementing agency for DEDS?

National Bank for Agriculture & Rural Development (NABARD) will be the Nodal Agency for implementation of the scheme. Commercial Banks, Co-operative Banks and Regional Rural and Urban Banks, State Cooperative Agriculture and Rural Development bank and such other institutions which are eligible for refinance from NABARD will implement the scheme.

4. Who are the primary targeted beneficiaries of this scheme?

Farmers, individual entrepreneurs and groups of unorganized and organized sectors. The organized sector includes self-help groups, dairy cooperative societies, Milk unions, milk federation, Panchayati Raj institutions, etc.

5. What is the minimum and maximum unit cost for which I can get a loan from the DEDS scheme?

The minimum unit cost is Rs. 22,000 and the maximum unit cost is Rs.6 lakhs on which you will get loan and government subsidy.