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.

    Scheme Outlay:

    Rs. 11,184 Cr; Total project outlay: Rs. 10,005 Crore (Loan: Rs. 8004 Crore, End Borrowers’ contribution: Rs. 2001 Crore); NDDB & NCDC Contribution: Rs. 12 Crore, Interest subvention (Government of India): Rs. 1167 Crore


    Components of DIDF:
    • Milk processing, Chilling and Value added Products plants
    • Milk Chilling infrastructure
    • Electronic milk testing kit

    New Components added in June 2021
    • Cattle feed/ feed supplement plants
    • Milk transportation system (Refer van/insulated tankers etc)
    • Marketing infrastructure (including e-market system, bulk vending system, Parlour, deep freezer, cold storage etc.
    • Commodity and Cattle feed go-downs
    • ICT infrastructure (e.g. block chain technology, servers, IT solutions, Near Real Time devices etc)
    • R&D (lab & equipment, new technology, innovations, product development etc)
    • Renewable energy infrastructure/ plants, trigen/ energy efficiency infrastructure
    • Pet bottle/packaging material manufacturing units for dairy purposes
    • Training centre (complete with civil and other necessary infrastructure)

    End Implementing Agency (EIA):

    State Milk federation. District Milk Union, Multi-state dairy cooperative, Milk producer Companies, Subsidiaries of NDDB


    Newly Added EIA:

    Registered FPOs & SHGs.


    Funding:
    • Interest subvention [DAHD to NABARD]: 2.5% (with effect from 11.09.2020), Any increase in cost of funds, shall be borne by the Eligible End Borrowers (EEB).
    • NDDB has also been allowed to give loans to End Borrowers from its own resources

    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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