No.1-2/2004-DP(Vol.II)

Government of India

Ministry of Agriculture

Department of Animal Husbandry, Dairying & Fisheries

Krishi Bhawan, New Delhi-110001

Dated the 20th April, 2009

OFFICE MEMORANDUM

 

Subject: Administrative approval for continuance of Centrally Sponsored Scheme ‘Intensive

  Dairy Development Programme (IDDP) during 2009-10.

 

            I am directed to refer to this Department’s letter of even no dated 10.06.2005 on above mentioned subject and to convey administrative approval for continuation of the said Centrally Sponsored Scheme for dairy development viz. Intensive Dairy Development Programme (IDDP) in Non-Operation Flood, Hilly and Backward Areas’ during the year 2009-10 of XI Plan.

2.       Department of Animal Husbandry, Dairying and Fisheries had launched a scheme entitled  ‘Integrated Dairy Development Project(IDDP) in Non-Operation Flood, Hilly and Backward Areas’ on 100% grant-in-aid basis during the 8th Plan period and continued during 9th & 10th Plan and first two years of 11th Plan.

3.         Government of India has approved the implementation/continuation of the modified scheme during 2009-10 of 11th Plan period.  Scheme would be entitled ‘Intensive Dairy Development Programme’ (IDDP) and will be implemented in hilly and backward areas including the districts which have received less than Rs.50 lakh for dairy development activities during Operation Flood Programme.  

4.         Undersigned is, therefore, directed to request State Governments/Union Territory Administrations/State Implementing Agencies to prepare suitable project proposals and submit to this Ministry for consideration.

5.         Pattern of funding in non-operation flood areas will be on 100% grants-in-aid basis from Central Government to the State Governments/Union Territory Administration except for the following items:

a)                  Cost of land for chilling centres, dairy plants, liquid nitrogen plants, cattle feed storage godowns, establishment of cattle/buffalo farms

b)                  Provision of water and  electricity connection

c)                  Salary of project and monitoring staff

These items would be funded by the respective State/UT Governments/Implementing Agencies

d)                  Dairy cooperative societies(DCS) in the villages will  contribute in the form of land for the construction of buildings for the society and also meet the salary of the Secretary and other personnel employed by the society after the project period.

e)                  Subsidy for cattle induction will be restricted to 50% of the NABARD cost of cattle.

6.         Pattern of funding for the districts which were covered under OF programme but where investment during OF Programme was less than Rs.50 lakh will be 100% grant-in-aid for the processing capacity up to 20,000 litres/day.  Above this cap, OF pattern will be followed, namely, 70% loan and 30% grant.

 

7.         The scheme shall be implemented with the following stipulations:

i)                    Scheme will be implemented by State Dairy Federations/District Milk Unions in view of their expertise and professionalism.

ii)                   Funds will be released directly to implementing agencies to avoid delay in release of funds and speeding up implementation of projects.

iii)                 Project will be prepared based on cluster approach in areas with better availability of water and fodder.

iv)                 Provision will be made for producing better quality milk in order to create environment for production of clean and good quality milk and adopting good hygienic practices.

v)                  Maximum project cost will be Rs.3.00 crore per district. 

vi)                 Major components of the project will have the following ceilings:

  • Milk processing and marketing facilities (including chilling, processing, product manufacturing and marketing - not more than 60% of the total project cost
  • Milk procurement activities including expenditure on DCS milk transportation, procurement tankers and other vehicles etc. - not more than 30% of total project cost.
  • Technical input services including breed improvement, animal health care, feed and fodder development/provision etc. - not more than 20% in areas where the breed  improvement facilities are not provided under National Project for Cattle and Bufallo Breeding(NPCBB) or any other similar programme and  not more than 10% in areas covered by NPCBB etc.
  • Cattle induction to be restricted to only scheduled castes/scheduled tribes and BPL families subject to an overall ceiling of 10% of the total project cost and subsidy may be restricted to 50% of the NABARD cost of cattle.

§         Manpower development including training requirements of field and dairy staff as well as Management Committee of DCS and farmers training  - not more than 10% of the total project cost.

  • Working capital - not more than procurement price for 21 days of the  targeted milk procurement.
  • Management grant  for a period of 3 years on a tapering down basis.
  • Benchmark survey and  preparation of  high quality Detailed Project Reports – not more than 3% of the total project cost.

·        Concurrent evaluation and in-depth independent evaluation to be undertaken at the end of 10th Plan – not more than 2% of the project cost.

8.         Project prepared by the State Governments/Implementing Agencies with in the project guidelines given in preceding paragraphs shall be considered by the Project Sanctioning Committee consisting of Secretary, Animal Husbandry, Dairying & Fisheries as Chairman and representatives of Finance Ministry, Planning Commission, Ministry of Rural Development, Additional Secretary & Financial Adviser of the Department of Animal Husbandry, Dairying & Fisheries,  Jt. Secretary(Dairy Development), Department of Animal Husbandry, Dairying & Fisheries and  NDDB.              

9.         Projects will be regularly monitored on quarterly basis by a Technical Management Committee headed by Secretary, Incharge of Dairy Development in the concerned State/Union Territory and will have a representative each of the Department of Animal Husbandry, Dairying and Fisheries, Government of India and Planning Commission apart from the concerned officers of the various Departments of State Governments.  The implementing agencies/State Governments will send a quarterly progress report in the performa prescribed by the Department of Animal Husbandry, Dairying & Fisheries.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

10.       All or some of the following components as per actual needs of the project areas shall be considered for funding under the project:

1.      Pre project bench mark survey and consultancy.

2.      Concurrent Evaluation

3.      Milk Processing & Marketing

3.1  Processing and Marketing  (Civil work, equipment for bulk coolers, chilling centers, milk processing plants, transportation tankers, including refrigerated tankers, cold storage, marketing infrastructure etc)

3.2  Milk Products Manufacture 

 4.0 Milk Procurement

4.1 Capital Investment for DCS

4.2 Collection of Milk through tankers and/ or cans

4.3 Management grant to DCS(tapering basis- for 5-years only)

4.4 Transport subsidy on milk transport/ head load charges

4.5 Incentive for better quality milk

5.Technical Inputs (To be provided where it is not possible to avail under NPCBB and other similar schemes)

5.1Natural Breeding Services

5.2.AI Services

5.3 LN2 Plant & Containers

5.4.Feed and Fodder Development

a)      Pasture Development

b)      Fodder Seeds/Mini Kits Distribution

c)      Transport subsidy on cattle feed                                      

d)      Cattle Feed Storage Go downs/ compounding plant where required.

5.5.  Induction of Animal (Margin money for purchase of cattle) / insurance for cattle- maximum 50% cost.

5.6  Heifer Farm Establishment (shed, feed)  

5.7  Health Care

a)      First Aid Box medicines

b)      Mobile Veterinary   Clinic  

c)      FMD & other vaccines

d)      Health & Breeding Inputs Camps

5.8 Extension Services/Audio Visual Kits etc.

6.0. Manpower Development

6.1 Co-operative Development Programme

6.2Farmer Induction Programme/Training of farmers

6.3 Training of Dairy Personnel

6.4 Training of DCS staff

6.5 Training of First Aid/Field workers

6.6 Training of Management Committee Members & Board of Directors of Union

6.7 Training of farmers in good hygienic practices.

7.0 Working Capital

11.       Not withstanding any thing mentioned above, I am further directed to convey the administrative approval for continuation during 2009-10 for the projects sanctioned prior to 28.03.2005 under the pre revised scheme of IDDP, the last administrative approval for which was conveyed vide OM No.1-2/2004-DP Vol.II dated 29th April-2008.

12.       There is a budget provision of Rs 32.49 crore (Rs Thirty two crore forty nine lakh only) for continuation of this Scheme during current financial year 2009-10 as grants-in-aid to State Government/UT.

13.       This sanction issues with the concurrence of Integrated Finance Division vide their                          Dy no.140/AS&FA dated 17.04.2009.  

                                                                                                                                                

(M.R. Sharma )

Under Secretary to Government of India

Distribution:

1.      Secretary, Incharge of Dairy Development in all States/UTs

2.      Ministry of Rural Development, Department of Rural Employment & Poverty Alleviation(IRD Division), Room No.250, Krishi Bhawan, New Delhi-110001

3.      Secretary, Department of Expenditure, North Block, New Delhi

4.      Planing Commission(Agri. Division), Yojana Bhawan, New Delhi

5.      Managing Director, NDDB, Anand

6.      Principal Accounts Officer, Ministry of Agriculture, Department of Animal Husbandry and Dairying, 16, Akbar Road Hutments, New Delhi-110011

7.      The Accountant General, Commerce, Works and Miscellaneous, AGCR Building, New Delhi-110002

8.      Chief Controller of Accounts, Department of Agriculture &Cooperation, Krishi Bhawan, New Delhi-110001

9.      PPS to Secretary(AHD&F), PSs to JS(DD)/FA/DS(DD)/US(Fin.)/JC(LP)/JC(CBF)/DC(LH)/DC(FF)/Admn.IV/Guard File                                                                 

 

 

(M.R. Sharma )

Under Secretary to Government of India