Dairy Venture Capital Fund (Central Sector Scheme)

                 

                  To bring about structural changes in the unorganized sector, the measures like milk processing at village level, marketing of pasteurized milk in a cost effective manner, quality up-gradation of traditional technology to handle commercial scale using modern equipment and management skills, the Venture Capital Fund for Dairy and Poultry sector was started in Xth plan and Planning Commission has approved the scheme for continuation during XI plan with an enhanced outlay of Rs.300 crore. However the dairy and poultry components have been separated into two new schemes during 11th Plan and are now termed as Dairy Venture Capital Fund (DVCF) with a separate allocation from 2009-10. Under the scheme, financial assistance is provided as loan to the rural/urban beneficiaries under a schematic proposal through bankable projects.

           

This scheme was approved in Dec-2004 i.e. during 10th Five Year Plan with a total outlay of Rs.25.00 crore against which an amount of Rs.28.00 crore were released. The scheme is being implemented through NABARD and the funds released by GOI to NABARD are kept as revolving fund. Since inception, a sum of Rs.132.99 crore has been released to NABARD for implementation of scheme throughout the country. An amount of Rs.20.00 crore has been released during the year 2009-10.

 

Pattern of Assistance

 

  • Entrepreneur’s contribution                                                                10%
  • Interest free Loan from revolving fund provided by GOI                     50%
  • Bank loan at interest applicable for agricultural activities                   40%

                       

Government of India subsidizes the interest component applicable for agricultural activities to the extent of 50% only in case of regular/timely repayment by the beneficiary.

           

The components funded under the scheme are placed at Annexure I.

 

Financial & Physical Progress under the scheme

 

Since inception of the scheme a total of 15368 Dairy Units have been sanctioned with a total interest free loan amount of Rs. 146.91 crore till 31st March 2010. 

 

Year-wise amount of Funds sanctioned by NABARD to participating banks during 2005-06 to 2009-10  for release of Interest Free Loan are as under: -

Year

RE

Release by GOI

Amount sanctioned by NABARD(Rs. crore) 

Unit sanctioned

Dairy

Dairy

2005-06

12.00

15.80

9.81

1014

2006-07

15.00

12.20

15.88

1858

2007-08

49.99

49.99

33.36

2972

2008-09

35.00

35.00

39.71

4805

2009-10

20.00

20.00

48.15

4719

Total

 

132.99

146.91

15368

*Though the scheme was approved during 2004-05, funds were released for implementation of the scheme for the first time in the year 2005-06.

Annexure-I
 
Dairy Sector:

 

Sl.No.

Component

Maximum total project cost*

            (Rs. in lakhs)

1.

Establishment of small dairy farms-Ten animal unit (buffaloes/cross breed cows) for milk production

Rs.3.00 lakhs per unit (upto ten animals)

-Any Non Operation Flood areas.

-The total cost depends on the infrastructural facilities required.

2.

Purchase of milking machines / milkotester / bulk milk cooling unit etc.

Rs.15.00 lakhs

Milking Machine, Milk-o-tester

Bulk Milk Cooling units (upto 2000 lts capacity)

3.

Purchase of dairy processing equipment for manufacturing indigenous milk products.

Rs.10 lakhs per unit

-Unit cost depends upon the quantum of milk to be handled and the type of products to be manufactured

-The total cost depends upon the investment on civil structures, type and source of machinery.

4.

Establishment of dairy product transportation facilities including cold chain.

Rs.20 lakhs per unit

-Unit cost depends upon the quantum of milk/milk products to be transported / handled and the type of products to be transported

-The total cost depends upon the investment on type and source of transport vehicle and machinery

5.

Cold storage facilities for milk and milk products.

Rs. 25 lakhs per unit

- Unit cost depends upon the quantum of milk/milk products to be stored and the type of products to be stored

-While the cost depends upon the investment on type and source of machinery used.

6.

Establishment of private veterinary clinics.

Rs.2.00 lakhs per unit for Mobile clinics and Rs.1.5 lakhs for Stationary clinic

-  Area of operation from 8 to 10 villages having 5000 to 6000 cattle units.

 

* The Government of India will provide 50% of the total approved project cost as interest free loan. 


 Dairy Venture Capital Fund

Objectives of the scheme

 

  • To promote setting up of small dairy farms for milk production.
  • To bring structural changes in the unorganized sector: processing and marketing of pasteurized milk at village level.
  • To bring about upgradation of quality and traditional technology to handle milk on a commercial scale.

 

Implementing Agencies

 

National Bank for Agriculture & Rural Development (NABARD) will be the Nodal Agency for implementation of the scheme. Commercial Banks, Cooperative Banks and Regional Rural Banks will implement the scheme. The scheme is open to organized as well as unorganized sector.

 

Target group/ beneficiaries

 

            The Department has proposed this scheme for dairy development in the unorganized sector by providing financial assistance through NABARD to the promoter on the basis of bankable project recommended by NABARD. This scheme shall also help in employment generation at village level as well as Dairy Cooperative Society level.

 

Pattern of Assistance

 

  • Entrepreneur’s contribution                                                              10%
  • Interest free Loan from revolving fund provided by GOI                50%
  • Bank loan at interest applicable for agricultural activities                        40%

           

            Government of India subsidizes the interest component applicable for agricultural activities to the extent of 50% only in case of regular/timely repayment by the beneficiary.

 

Year when the scheme started

 

Dairy/Poultry Venture Capital Fund scheme was started in Dec’2004 with an outlay of Rs. 25.00 Crore.  The fund was released during 2005-06 for the first time for implementation of the scheme. Planning Commission has approved the scheme for continuation during XI plan with an enhanced outlay of Rs.300 crore. However the dairy and poultry components have been separated into two new schemes during 11th Plan and are now termed as Dairy Venture Capital Fund (DVCF) with a separate allocation from 2009-10.

Annual Outlay/Expenditure (Central Assistance)

                                                                                                                    (Rs. in crore)

Year

2005-06

2006-07

2007-08

2008-09

2009-10

RE/BE provision

14.00

15.00

49.99

35.00

20.00

Expenditure

15.80*

12.20*

49.99*

35.00*

20.00*

 

*Fund has been released, to be kept as revolving fund by NABARD to provide interest free loan to the beneficiaries.

 

 

Physical Targets and achievements

 

No physical targets have been specified, as it is a demand driven scheme. Progress as on 31st March 2010 indicates sanctioning of 15368 Dairy Units with revolving fund assistance of Rs.146.91 crore.

 

Click here to view State wise disbursement of Interest Free loan by NABARD since inception of the scheme.

 

Remarks

 

The guidelines of the scheme can be obtained either from Regional Offices of NABARD or this Department’s website www.dahd.nic.in

 

For further details contact

 

Director (Dairy Development), Department of Animal Husbandry, Dairying & Fisheries, Krishi Bhawan, New Delhi-110 001. Tel.#: 011-23388688

 

Statement showing status of releases of funds under

Central Sector Plan- Dairy Venture Capital Fund

A) Other than North Eastern states

for States other than NE)

 

 

 

 

 

 

 

 

S.No.

State

Units

Amount (Rs)

 

1

2

3

4

 

1

Andhra Pradesh

37

6646000

 

2

Bihar

64

8586500

 

3

Chhatisgarh

3

800000

 

4

Goa

3

2688000

 

5

Gujarat

15

808620

 

6

Haryana

4

1320900

 

7

Himachal Pradesh

1163

120537400

 

8

Jammu & Kashmir

124

17477500

 

9

Jharkhand

30

4554500

 

10

Karnataka

680

47477900

 

11

Kerala

299

45519065

 

12

Madhya Pradesh

285

43226500

 

13

Maharashtra

7347

644240400

 

14

Orissa

291

19844100

 

15

Punjab

3

1692000

 

16

Rajasthan

497

66653600

 

17

Tamil Nadu

269

29783000

 

18

Uttar Pradesh

171

28860400

 

19

Uttaranchal

959

106203700

 

20

West Bengal

192

17481900

 

 

Total

12436

1214401985

 

 

 

 

 

 

B) North Eastern states

Rs.20.80 crore are for North Eastern States)

 

 

 

 

 

 

 

S.No.

State

Units

Amount (Rs)

 

1

2

3

4

 

1

Arunachal Pradesh

19

2850000

 

2

Assam

1095

134039216

 

3

Manipur

105

22332000

 

4

Meghalaya

6

802400

 

5

Mizoram

310

46500000

 

6

Nagaland

0

0

 

7

Sikkim

585

3846262

 

8

Tripura

812

44349000

 

 

Total

2932

254718878

 

 

 

 

 

 

C) Grand Total (A+B)

15368

1469120863

 

 

 

Click here for administrative approval

 

Statement showing status of releases of funds