How to apply for NABARD subsidy for dairy farming

2 years ago Sarkari user 1

Dairy farming is a large unorganized in India and a major source for livelihood in rural areas.In an effort to bring in structure into the dairy farming industry and provide assistance for setting up dairy farms, the department of animal husbandry, dairying and fisheries launched the “venture capital scheme for dairy and polutry” in 2005. The scheme provided interest free.

OBJECTIVE: 

  • To generate self-employment and provide infrastructure for dairy sector
  • For good source of organic matter for improving soil fertility and crop yields.
  • To bring structural changes in  ihe unorganized sector
  • The gobar gas from the dung is used as fuel for domestic purposes, running             engines, drawing water from well.
  • To promote setting up of dairy farms for production of milk.

Eligibility:

  • Farmers, Individual Entrepreneur and Groups of Unorganized and Organized Sector.
  • An applicant will be eligible to avail assistance for all components under the scheme but only once for each component.
  • The distance between the boundaries of two such farms should be at least 5OO m.

Schemes:

1. Establishment of small dairy units with crossbred cows/ indigenous description milch cows like Sahiwal, Red Sindhi, Gir, Rathi etc / graded buffaloes up to 10 animals. 

Investment: Rs 5.00 lakh for 10 animal unit – minimum unit size is 2 animals with an upper limit of 10 animals.

Subsidy: 25% of the outlay (33 .33 % for SC / ST farmers, ) as back-ended capital subsidy subject to a ceiling of Rs 1.25 lakh for a unit of 10 animals ( Rs 1.67 lakh for SC/ST farmers,). The maximum permissible capital subsidy is Rs 25000 ( Rs 33,300 for SC/ST farmers )for a 2 animal unit. Subsidy shall be restricted on a prorata basis depending on the unit size.

2. Rearing of heifer calves – cross bred, indigenous description milch breeds of cattle and of graded buffaloes – up to 20 calves.

Investment: Rs 4.80 lakh for 20 calf unit – minimum unit size of 5 calves with an upper limit of 20 calves.

Subsidy: 25% of the outlay (33.33 % for SC / ST farmers) as back-ended capital subsidy subject to a ceiling of Rs 1.20 lakh for a unit of 20 calves ( Rs 1.60 lakh for SC/ST farmers). The maximum permissible capital subsidy is Rs 30,000 ( Rs 40,000 for SC/ST farmers) for a 5 calf unit. Subsidy shall be restricted on a pro rata basis depending on the unit size.

3. Vermicompost (with milch animal unit .To be considered with milch animals and not separately ).

Investment: Rs. 20,000/-

Subsidy: 25% of the outlay (33.33 % for SC / ST farmers)as back-ended capital subsidy subject to a ceiling of Rs 5,000/- ( Rs 6700/- for SC/ST farmers,).

3. Purchase of milking machines /milk testers/bulk milk cooling units (up to 2000 lit capacity).
Investment: Rs 18 lakh.
Subsidy: 25% of the outlay (33.33 % for SC / ST farmers) as back-ended capital subsidy subject to a ceiling of Rs 4.50 lakh ( Rs 6.00 lakh for SC/ST farmers).

4. Purchase of dairy processing equipment for the manufacture of indigenous milk products.
Investment: Rs 12 lakh.
Subsidy: 25% of the outlay (33.33 % for SC / ST farmers) as back-ended capital subsidy subject to a ceiling of Rs 3.00 lakh ( Rs 4.00 lakh for SC/ST farmers).

5. Establishment of dairy product transportation facilities and cold chain.
Investment: Rs 24 lakh.
Subsidy: 25% of the outlay (33.33 % for SC / ST farmers) as back-ended capital subsidy subject to a ceiling of Rs 6.00 lakh ( Rs 8.00 lakh for SC/ST farmers).

5. Cold storage facilities for milk and milk products.
Investment: Rs 30 lakh.
Subsidy: 25% of the outlay (33.33 % for SC / ST farmers) as back-ended capital subsidy subject to a ceiling of Rs 7.50 lakh ( Rs 10.00 lakh for SC/ST farmers).

6. Establishment of private veterinary clinics.
Investment: Rs 2.40 lakh for the mobile clinic and Rs 1.80 lakh for the stationary clinic.
Subsidy: 25% of the outlay (33.33 % for SC / ST farmers) as back-ended capital subsidy subject to a ceiling of Rs 60,000/- and Rs 45,000/- ( Rs 80,000/- and Rs 60,000/- for SC/ST farmers) respectively for mobile and stationary clinics.

7. Dairy marketing outlet / Dairy parlour.
Investment: Rs 56,000/-
Subsidy: 25% of the outlay (33.33 % for SC / ST farmers) as back-ended capital subsidy subject to a ceiling of Rs 14,000/-( Rs 18600/- for SC/ST farmers).

Steps:

  • Decide your business activity from the above-mentioned list.
  • Register a company
  • Business plan for dairy farm including a request for bank loan.
  • Submit your bank loan request to any nationalized or commercial bank or       regional rural bank which are eligible for refinancing from NABARD.
  • After getting the bank loan sanctioned, you can implement and establish your   dairy farm project.
  • On disbursement of the first installment of the loan, the Bank would have to     apply to NABARD for sanction and release of NABARD subsidy for dairy farming.
  • After getting the subsidy amount released from NABARD bank would hold the     subsidy in an account classified as “Subsidy Reserve Fund Account” with no             interest.
  • On satisfactory servicing of the loan obligation by the promoter, the subsidy     amount in the Subsidy Reserve Fund Account would be adjusted against the           last few repayments of the bank loan.

Source: National Bank For Agriculture And Rural Development (NABARD)