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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?
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, |
Rearing of heifer calves — cross bred, indigenous descript milch breeds of cattle and of graded buffaloes — up to 20 calves | Rs. 5.30 lakh | 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 | 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 | 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 | 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 | 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.