Financial assistance for infrastructure activities, skill development, trainings, extension activities and awareness programmes

Guidelines and terms & conditions for the scheme ‘Providing financial assistance for infrastructure activities, skill development, trainings, extension activities and awareness programmes’

Activities for financial assistance

A.   Funding for Infrastructure:  

         i.   Modernization/ Expansion/ Creation of milk processing infrastructure

        ii.   Installation of Bulk Milk Coolers at village level

       iii.   Creation of Marketing infrastructure

       iv.   Activities for improvement in operational efficiency

        v.   Creation/expansion of Feed and feed supplement manufacturing infrastructure

       vi.   Infrastructure for manufacturing of dairy equipment, nutraceuticals/ biological/ vaccines etc.

The financial assistance will be by way of Interest Bearing Loan (IBL) as given in the table below: 

No.

Type of Borrower

Details of Financial Assistance

Borrower’s contribution

NDDB Loan

Rate of Interest (Floating)

1

Dairy Cooperatives and Producer Companies

Minimum 20%

Maximum 80%

Floating rate of interest* as communicated from time to time.

2

NDDB Subsidiary Companies

Minimum 20%

Maximum 80%

50 basis points higher than the rate applicable to Dairy Cooperatives.

*Floating Interest Rate:

Effective from 1st April 2016:  8.75% per annum.

Effective from 1st April 2017:  8.25% per annum.

Circular - rate of interest for infrastucture projects

B.   Funding for Training / Programmes:

         i.    Skill development

       ii.    Manpower training and extension activities

      iii.    Awareness programmes for milk producers as well as consumers

Financial assistance for the trainings/ programmes will be provided to Cooperative Milk Unions/ Federations and Milk Producer Companies. The financial assistance will be on case to case basis purely on merit. Funding will be in the form of grant Maximum of 50% of cost of approved training/programme.

Activities to be covered under each area of investment would be decided by NDDB, whose decision in the matter would be final.

PDFs