Dairy Processing & Infrastructure Development Fund receives 10,881 cr.

A “Dairy Processing & Infrastructure Development Fund” (DIDF) with an outlay of Rs 10,881 crore during the period from 2017-18 to 2028-29 has been approved by The Cabinet Committee on Economic Affairs(CCEA),  chaired by Prime Minister Shri Narendra Modi. Dairy Processing & Infrastructure Development Fund will be set up as a corpus of Rs 8004 crore with National Bank for Agriculture and Rural Development (NABARD).

From Rs 10881 crore of financial outlay for project components of DIDF, Rs 8004 crore shall be loan from NABARD to National Dairy Development Board (NDDB) and National Dairy Development Cooperation, Rs 2001 crore shall be end borrowers contribution, Rs 12 crore would be NDDB/NCDC‘s share and Rs 864 crore shall be contributed towards interest subvention. NABARD shall disburse Rs 2004 Cr, Rs 3006 Cr and Rs 2994 Cr during the year 2017-18, 2018-19 and 2019-20 respectively.

 Allocation of Rs 864 Crore for meeting interest subvention will be released to NABARD over a period of 12 years covering the entire loan repayment period from 2017-18 to 2028-29. The new fund to be managed by the National Dairy Development Board (NDDB) and the National Dairy Development Cooperation will be used to provide loan for building an efficient milk procurement system and other processing infrastructure.

The project will focus on building an efficient milk procurement system by setting up of chilling infrastructure and installation of electronic milk adulteration testing equipment, creation/modernisation/expansion of processing infrastructure and manufacturing faculties for Value Added Products for the Milk Unions/ Milk Producer Companies.

The project will be implemented by the NDDB and National Dairy Development Cooperation directly through the End Borrowers such as Milk Unions, State Dairy Federations, Multi-state Milk Cooperatives, Milk Producer Companies and NDDB subsidiaries meeting the eligibility criteria under the project. 95,00,000 farmers in about 50,000 villages would be benefited by this fund.

With the increase in milk procurement operations of the Milk Cooperatives, there would be generation of additional manpower employment for supervision of increased milk procurement operations, transportation of milk from villages to processing units, and increased input delivery services like Artificial Insemination (AI) services, Veterinary Services, etc.