Dairy Entrepreneurship Development Scheme (DEDS)

Indian central government last year launched a scheme through National Bank for
Agriculture and Rural Development (NABARD) with an objective to bring structural
changes in the unorganized sector of dairy farming. It also aims to setting up of
modern dairy farms and providing employment opportunities for individuals.This
time government has come up with more financial assistance.

Farmers and individuals can take advantage of this scheme. This scheme also
provides an opportunities for entrepreneurs interested in dairy farming. Now have a
look at the important features and specifications of this scheme:

Who can apply?

Farmers, individuals, self-help groups, companies etc. can apply for this scheme.
An individual entrepreneur is eligible for one time assistance on all the
components.
More than one family member can be assisted under this scheme provided that
they set up different dairy unit parted by at least 500 m distance.

Financial Assistance:

Financial assistance will depend upon the type of dairy farming which has been
described below.

Establishment of small dairy unit with 2-10 cattle (cows and buffaloes)

Investment

INR 6 Lakh for 10 animal units minimum unit size is 2 animals with an upper limit
of 10 animals
Subsidy


INR 1.50 Lakh subsidy for General category and 1.98 Lakh for SC/ST
individuals.

Maximum amount has been fixed at INR 15,000 (20,000 for SC/ST farmers) in
the case of a single(one) animal unit.

Rearing of Heifer Cows up to 20 calves

Investment

INR 5.50 Lakh for 20 calves

Subsidy

INR 1.37 Lakh subsidy for General category and INR 1.83 Lakh for SC/ST
individuals.

Maximum permissible subsidy is INR 33,o00 (44,000 for SC/ST farmers) for 5
calves.

Purchase of milking machines/milk testers/chilling machines

Investment

INR 20 Lakh
Subsidy


INR 5 Lakh subsidy for General category and INR 6.67 Lakh for SC/ST
individuals.

Purchase of dairy processing equipment producing indigenous milk products

Investment

INR 13.20 Lakh

Subsidy

INR 3.30 Lakh for General category and INR 4.40 Lakh for SC/ST farmers.

For dairy products transportation facilities and cold chain

Investment

INR 26.50 Lakh

Subsidy

INR 6.625 Lakh for General category and INR 8.830 Lakh for SC/St farmers.

For cold storage facilities

Investment

INR 33 Lakh
Subsidy

INR 8.25 Lakh for General category and INR 11 Lakh for SC/ST farmers.

Note: The subsidy has been calculated on the basis of 25% for General category and
33.33% for SC/ST farmers.

Documents required:

The individual should not be a bank defaulter.

Land paper for mortgage in the case of loan amount exceeding to INR 1 Lakh.
Category certificate.

How it works?

Decide which farm activity you will be establishing.

Register your company
Make a detailed business/project plan for the dairy farm (include a bank loan
request too in the proposal and very much of your loan getting sanctioned depends
upon this draft).
Submit your request to any bank which are eligible for refinance from NABARD.