Transcript “Venture Capital Fund for Dairy & Poultry Sectors”

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
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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
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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.
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Eligible activities (Dairy Sector)
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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…..
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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
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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)
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Contd….
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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.
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Other issues
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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….
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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
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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