Dairy/Poultry Venture Capital Fund
It is a new central sector scheme approved by the EFC with an outlay of Rs.25.00 crores for implementation in the 10th Five Year Plan. The scheme will be implemented through NABARD. The budget provision of Rs.7.2 crores has been provided for implementation of the scheme during the year 2004-05.The administrative approval of the scheme has been issued on 14th December 2004.
Pattern of Assistance
· Entrepreneur’s contribution 10%
· Loan from revolving fund at ‘Zero’ interest 50%
· Bank loan at interest applicable for agricultural activities 40%
Government of India will subsidize the interest component applicable for agricultural activities to the extent of 50 % only in case of regular/timely repayment by the beneficiary.
Objectives and aim of the scheme
Dairy sector
Establishment of small dairy farms.
Establishment of private veterinary clinics.
Purchase of milking machines, milkotester, bulk coolers, bactotesters, etc.
Dairy processing equipment for manufacturing indigenous milk products.
Dairy product transportation facilities including cold chain.
Storage facilities for milk and milk products.
Poultry sector
Establishing of poultry breeding farm with low input technology birds and also for ducks/Quails/ Turkeys/ Guinea Fowl/Ostrich etc.
Setting up of a poultry feed plant along with a laboratory.
Setting up of egg grading, packing and storing unit for export of eggs.
Marketing of Poultry products (specialized transport vehicle, cold room storage facilities and retention sheds for birds).
Establishing retail poultry dressing unit (300-500 birds/day).
Purchase of egg/broiler carts for sale of poultry products
Incentive on export of poultry products (freight charges).
Purchase of reading material and A.V. equipment for training and extensions activities.
Implementing Agencies
It is a new Central Sector Plan Scheme. Department of Animal Husbandry, Dairying & Fisheries, Government of India would be implementing the scheme through NCDC/NABARD.
Target group/beneficiaries
The Department has proposed this scheme for overall poultry & dairy development in the unorganized sector by providing financial assistance through NABARD/NCDC to the promoter on the basis of bankable project recommended by NABARD/NCDC. This scheme shall also help in employment generation at village level as well as Dairy Cooperative Society level.
Year when the scheme stated
This is a new scheme yet to be approved by the Expenditure Finance Committee; however an outlay of Rs. 25.00 Crore has been made for its implementation during the Tenth Five year plan.
Annual Outlay (Central assistance)
|
Year |
Outlay(Rs. in Lakhs) |
|
2002-03 |
50.00 |
|
2003-04 |
300.00 |
|
2004-05 |
450.00. |
|
2005-06 |
850.00 |
|
2006-07 |
850.00 |
|
|
|
Physical
Targets There is no physical target fixed under the scheme.
Achievement The scheme is under consideration
of Expenditure Finance Committee.
|
F.N0.1-2/02-DP |
|
Krishi Bhawan, New Delhi-110001 |
|
|
Sl.No. Component Maximum total project cost* (Rs. in lakhs) 1. Establishing
poultry breeding farm with low input technology birds and also
for ducks/turkey/Guinea Fowl/Quail/Emu/Ostrich etc. 30.00 2. Establishment
of feed go-down, feed mill, feed analytical laboratory 16.00 3. Marketing of
poultry products (Specialized transport vehicles, cool room
storage facilities and retention sheds for birds etc.) 25.00 4. Egg grading, packing and storage for export
capacity 80.00 5 Retail poultry dressing unit (300 birds per
day).
5.00 6. Egg/broiler carts for sale of poultry
products.
0.10 7. Central grower
unit (12,500 birds per batch and 4 batches per year) 20.00 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. 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 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. 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.
Subject: Central Sector Plan Scheme –
“DAIRY/POULTRY VENTURE CAPITAL
FUND” implementation during 10th Plan period – administrative approval
for.
Milk production in India is characterized by small rural producers
scattered all over the country accounting for about 70% of production. In
India, a far larger proportion of milk continuous to be handled by the
unorganized sector i.e. 85% comprising enumerable small processors and
manufacturers of indigenous milk products. But the main contention in the
unorganized sector is the quality, which creates a serious threat to human
health. Similar is the case with poultry, where considerable segment is
still unorganized. In the absence of organized marketing, the poultry
development programme under the cooperative sector is not able to make a
dent.
2. The Government of India has been considering a proposal to provide
financial assistance for setting up/modernization of dairy and poultry
sector. The interventions through the scheme involve the generation of
self employment and providing infrastructure to the unorganized sector for
making improvement in the quality resulting in food safety. It will help
in bringing a significant portion of unorganized sector in the ambit of
organized sector and will result in increasing the commercial viability of
the activities.
3. The scheme considered and approved by the competent authority, will be
implemented through National Bank for Agriculture and Rural Development (NABARD),
which will be the nodal agency for the scheme. Now, the undersigned is
directed to convey the administrative approval for implementation of the
said Central Sector Plan scheme “DAIRY/POULTRY VENTURE CAPITAL FUND”
during the 10th Plan period. The scheme has been approved with the
guidelines given in the para 4. The total central outlay for the scheme
for the 10th Plan period would be Rs.25.00 crores with a budget provision
of Rs.7.2 crores in the year 2004-05.
4. The guidelines for the approval of the project under the scheme shall
be as below:
i) The financial assistance of 50% of the project cost will be provided by
Government of India as interest free loan while 40% of the project cost
shall be provided by the financing bank at the rate of interest as
applicable for agricultural activities and 10% share of the project cost
shall be borne by the beneficiary. Besides this, Government of India will
also subsidize the interest component applicable for agricultural
activities to the extent of 50% in case of regular/timely repayment by the
beneficiary.
ii) The Government of India will release its share to NABARD, which will
be maintained by them as revolving fund.
iii) The scheme will be extended to agricultural farmers/individual
entrepreneurs and groups of all sections of unorganized as well as
organized sector.
iv) The components, which can be funded under the scheme, are given below.
However, they may be funded individually or in combination.
Poultry Sector:
Dairy
Sector:
* The Government of India will provide 50% of the total approved project cost as interest free loan.
v) NABARD shall work out the modalities in consultation with the
commercial banks and Department of A.H. & Dairying for implementation
of the scheme.
vi) The proposals will be sanctioned by the commercial banks as per the
guidelines of RBI, NABARD and Government of India.
vii) The recovery of loan, when made, will be divided between the GOI’s
share and the Bank’s share of loan on pro-rata basis. Similarly, the
loan will be disbursed simultaneously from the revcolving fund as well as
banker’s share on pro-rata basis.
viii) NABARD will submit quarterly report to DAH&D giving information
on number of proposals received, sanctioned, farmers/ entrepreneurs
benefited, release of funds, funds sanctioned, recovery of loan etc.
ix) A Joint Monitoring Committee consisting of representatives of NABARD
and the concerned Banks under the Chairmanship of Joint Secretary(DD&P)
will oversee the implementation of the scheme.
x) The scheme will be reviewed towards the end of the tenth plan and
suitably amended based on the feedback of implementing agency and the
constraints/difficulties encountered in the implementation of the scheme.
|
(Amarjeet Kaur) |
(Amarjeet Kaur)
Distribution:
1. Principal Accounts Officer, Ministry of Agriculture, Department of
Animal Husbandry and Dairying, 16, Akbar Road Hutments, New Delhi-110011.
2. The Accountant General, Commerce, Works and Miscellaneous, AGCR
Building, Near ITO, New Delhi-110002.
3. Chief Controller of Accounts, Department of Agriculture and
Cooperation, Krishi Bhavan, New Delhi.
4. Advisor (Agriculture), Planning Commission, Yojana Bhavan, New Delhi.
5. Additional Secretary & Financial Advisor, Deptt. of Animal
Husbandry & Dairying, Krishi Bhavan, New Delhi
6. Dr. C.O. Reddy, Deputy General Manager, NABARD, C-24 ‘6’ Block,
Bandra-Kurla Complex Bandra (East), Mumbai - 400051
7. Joint Secretary (Admn.), Room No.199, Ministry of Rural Development,
Krishi Bhawan, New Delhi.
8. Joint Secretary (PF-II), Ministry of Finance, Department of
Expenditure, North Block, New Delhi.
9. Joint Secretary, Ministry of Finance, Department of Economic Affairs,
Banking Operation and Administration Division, Room No.6, 3rd Floor,
Jeevan Deep Building, Parliament Street, New Delhi.
10. Managing Directror, NDDB, P.B.No.40, Anand 388001.
11. AC(P) and DC(LH)
Copy for information to: PPS to Secretary (AH&D)/ PPS to JS(DD&P)/
PA to Director (DD).
Director (Dairy Development)
