Dairy Entrepreneurship Development Scheme

National Bank for Agriculture and Rural Development (NABARD)

The department of Animal Husbandry, dairying and fisheries is implemeting Dairy Enterpreneurship Development Scheme (DEDS) for generating self-employment opportunities in the dairy sector, covering activities such as enhancement production, procurement, preservation, transportation, processing and marketing of milk by providing back ended capital subsidy for bankable projects. The scheme is being implemented by National Bank for Agriculture and Rural Development (NABARD).

Objective of the Scheme
  • To promote setting up of modern dairy farms for production of clean milk                                                                                                                                    
  • To encourage heifer calf rearing, thereby conserving good breeding stock                                                                                                                                                 
  • To bring structural changes in the unorganised sector so that initial processing of milk can be taken up at the village level itself                                                                                                                                                                                         
  • To upgrade the quality and traditional technology to handle milk on a commercial scale                                                                                                                                                                                                                 
  • To generate self-employment and provide infrastructure mainly for unorganised sector 
Eligible Beneficiaries
  1. Farmers, individual entrepreneurs, NGOs, companies, groups of organised and unorganised sectors, etc. Groups of organised sector include Self-help Groups (SHGs), dairy cooperative societies, milk unions, milk federations, etc.                                                                                                                                                        
  2. An individual will be eligible to avail assistance for all the components under the scheme but only once for each component                                                                                                                                                                                         
  3. More than one member of a family can be assisted under the scheme provided they set up separate units with separate infrastructure at different locations. The distance between the boundaries of two such farms should be at least 500 metres.
Financial Institutions Eligible for Re-finance Under the Scheme
  • Commercial Banks                                                                                                                                         
  • Regional Rural and Urban Banks                                                                                                                                                                                             
  • State Cooperative Banks                                                                                                                                                                                                                              
  • State Cooperative Agricultural and Rural Development Banks                                                            
  • Other Institutions, which are eligible for refinance for NABARD
Linkage With Credit

Assistance under the scheme shall be purely credit linked and subject to sanctions of the project by eleigible financial institutions

Pattern Assistance

(a) Back ended capital subsidy @25% of the project cost for general category and @33% for SC/ST farmers. The componenet wise subsidy cieling will be subjected to indicative cost arrived at by NABARD from time to time                (b)Enterprenuer Contribution (Margin) for loans beyond Rs. 1 lakh* – 10% of the project cost

(*subject to any revision in RBI guidelines)

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