The Cabinet Committee on Economic Affairs (CCEA) on 12 September 2017 approved implementation of Dairy Processing & Infrastructure Development Fund (DIDF) scheme with an outlay of Rs 10881 crore.
The Dairy Processing & Infrastructure Development Fund will be set up as a corpus of Rs 8004 crore with National Bank for Agriculture and Rural Development (NABARD).
The scheme will be implemented during the period from 2017-18 to 2028-29.
Financial Outlay of Dairy Processing & Infrastructure Development Fund
• Initiation and setting up of Dairy Processing and Infrastructure Development Fund (DIDF) at a total scheme outlay of Rs 10881 crore.
• Out of Rs 10881 crore, Rs 8004 crore will be loan from NABARD to National Dairy Development Board (NDDB) and National Dairy Development Cooperation (NCDC), Rs 2001 crore will be contributed by end borrowers, Rs 12 crore will be NDDB/NCDC‘s share and Rs 864 crore will be contributed by DADF for meeting interest subvention.
• NABARD will disburse Rs 2004 Cr, Rs 3006 Cr and Rs 2994 Cr during the year 2017-18, 2018-19 and 2019-20 respectively.
• Allocation of Rs 864 Crore for meeting interest subvention will be released to NABARD over a period of 12 years covering the entire loan repayment period from 2017-18 to 2028-29.
Highlights of the Dairy Processing & Infrastructure Development Fund
• The project will focus on building an efficient milk procurement system by setting up infrastructure & installation of electronic milk adulteration testing equipment, creation of processing infrastructure and manufacturing faculties for Value Added Products for Milk Producer Companies.
• The project will be implemented by National Dairy Development Board (NDDB) and National Dairy Development Cooperation (NCDC) directly through the End Borrowers.
• The end borrowers will be Milk Unions, State Dairy Federations, Multi-state Milk Cooperatives, Milk Producer Companies and NDDB subsidiaries meeting the eligibility criteria under the project.
• An Implementation and Monitoring Cell (IMC) located at NDDB, Anand, will manage the implementation and monitoring of day-to-day project activities.
• The end borrowers will get the loan at 6.5 per cent per annum. The period of repayment will be 10 years with initial two years moratorium.
• The respective State Government will be the guarantor of loan repayment.
• The implementation of DIDF scheme will generate direct and indirect employment opportunities for skilled, semi-skilled and unskilled manpower.
What: Approved by CCEA
When: 12 September 2017