Friday, March 25, 2011

Dairy and Poultry Venture capital fund launched in 2005-06 was segregated into Dairy and Poultry Venture Capital Funds during the year 2009-10. The mode of implementation of Dairy Venture Capital Fund is changed from interest free loan to capital subsidy and a revised scheme Dairy Entrepreneurship Development Scheme (DEDS) has come into effect from 1 September 2010



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

To encourage heifer calf rearing thereby conserve good breeding stock

To bring structural changes in the unorganized sector so that initial processing of milk can be taken up at the village level itself.

To bring about upgradation of quality and traditional technology to handle milk on a commercial scale

To generate self employment and provide infrastructure mainly for unorganized sector..


Activities covered and indicative unit costs




Small dairy farms - Cross bred cows, Indigenous descript breeds and Graded buffaloes (upto 10 animals) - Rs.5 lakh

Vermicompost (with milch animals unit) - Rs 20,000/-

Heifer calf rearing - upto 20 calves - Rs 4.80 lakh

Purchase of milking machines / milko testers / bulk milk coolers (upto 2000 lr. capacity) - Rs.18 lakh

Indigenous milk products manufacturing units - upto Rs.12 lakh.

Dairy product transport facilities and cold chain - Rs.24 lakh.

Cold storage for milk/milk products - Rs.30 lakh.

Private veterinary clinic - Rs.2.4 lakh - Mobile Units, Rs.1.80 lakh - Stationary Units

Dairy parlour - Rs 56,000/-




Farmers, individual entrepreneurs, NGOs, companies , groups of unorgainsed and organized sector etc.




Scheme funding/Pattern of Investment


Entrepreneur’s Contribution : 10% of total outlay - minimum

Back ended capital subsidy : 25% (33.33% for SC/ST beneficiaries) of total outlay, subject to a ceiling

Cold storage for milk/milk products - Rs.30 lakh.Bank’s share : Balance portion - Minimum 40%.


Implementing Institutions


Department of Animal Husbandry Dairying and Fisheries, GoI is the focal department for the scheme. NABARD will implement the scheme through Commercial Banks, State Cooperative Banks, SLDBs Regional Rural Banks and other agencies eligible for refinance from NABARD


Security Norms


The security norms will be as prescribed by Reserve Bank of India from time to time.




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