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    Dairy Processing & Infrastructure Development Fund

    Dairy Processing & Infrastructure Development Fund (DIDF)

    Consequent to the Union Budget 2017-18 announcement, Dairy Processing & Infrastructure Development Fund has been set up with a corpus of Rs. 8,004 crore with National Bank for Agriculture and Rural Development (NABARD). The CCEA in its meeting dated 12.09.2017 has approved the scheme which has the objective to provide subsidized loan @6.5% to capital stressed milk cooperatives for primarily replacing their decades old chilling and processing plants and addition of value added product plants. Out of Rs 10,881 crore of financial outlay for project components of DIDF, Rs 8,004 shall be loan from NABARD to NDDB/NCDC, Rs 2,001 crore shall be end borrowers contribution, Rs 12 crore would be NDDB/NCDC’s share and Rs 864 crore shall be contributed by DAHD toward interest subvention. The project focuses on building an efficient milk procurement system by setting up of processing and chilling infrastructure & installation of electronic milk adulteration testing equipment at village level.

    The Scheme envisages providing loan assistance to State Dairy Federations, District Milk Unions, Milk Producers Companies, Multi State Cooperatives and NDDB subsidiaries across the country who are termed as Eligible End Borrowers (EEBs). The funding period (2017-18 to 2019-20) of the scheme to be revised to 2018-19 to 2022-23 and the repayment period to be extended upto 2030-31 with spill over to first quarter of the FY 2031-32.

    Objectives of the DIDF scheme:

    • • To modernize the milk processing plants and machinery and to create additional infrastructure for processing more milk.

    Implementing Agency and End Borrowers:

    • • Implemented by National Dairy Development Board (NDDB) and National Cooperative Development Corporation (NCDC)
    • • End Borrowers: Milk Unions, State Dairy Federations, Multi-state Milk Cooperatives, Milk Producer Companies and NDDB subsidiaries.

    Source of fund and Funding Pattern (Rs in crore):

    At the time of launch (2017) After CCEA decision on 19.02.2020
    NABARD Loan 8004 NABARD Loan 8004
    End Borrowers’ contribution 2001 End Borrowers’ contribution 2001
    NDDB’s Contribution 6 NDDB’s Contribution 6
    NCDC’s Contribution 6 NCDC’s Contribution 6
    Interest subvention from DAHD 864 Interest subvention from DAHD 1167
    Interest subvention rate 2% 2.5% ( w.e.f 30.7.2019) -
    Total Outlay 10,881 Total Outlay 11,184

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