DIDF scheme to play a major role in achieving our collective dream of building New India: Dilip Rath

Anand, 18 January 2018: Shri Dilip Rath, Chairman, National Dairy Development Board (NDDB) inaugurated a workshop on ‘Dairy Processing & Infrastructure Development Fund (DIDF)’ Scheme at Dr Kurien Auditorium, NDDB, Anand on 18 January 2018. Shri Rath also launched a web page on DIDF scheme depicting details of the scheme. The workshop was organised to sensitise stakeholders on various aspects of DIDF scheme. Secretaries (AH/DD) of state governments, MDs of milk federations, CEOs of milk unions/producer companies, officials of NABARD and NDDB/NDDB subsidiaries attended the workshop. 

In his inaugural address, Shri Rath said, “As we are moving towards celebrating 75 years of Independence in 2021-22, we have to work shoulder to shoulder in a mission mode to achieve our collective dream of building New India. Some of the means to achieve this dream is through doubling farmers’ income, promoting digital India, increasing coverage of producer-owned organisations, having state of art processing facilities with the cooperatives, making available quality milk to consumers and enhancing production & sales of value added milk products. DIDF scheme will definitely play a major role in achieving these goals. Meeting these objectives will require concerted and coordinated efforts from all the stakeholders present here.” 

Chairman, NDDB said that in the Union Budget 2017-18, the Government of India has announced creation of Dairy Processing & Infrastructure Development Fund (DIDF) to support dairy cooperatives for modernisation and creation of additional processing infrastructure. The major objectives of this fund is to build an efficient milk procurement system by setting up of chilling infrastructure & installation of electronic milk adulteration testing equipment, creation, modernization & expansion of milk processing infrastructure and manufacturing facilities for value added products. The fund has been approved with a total outlay of Rs 10,881 crore during the period from 2017-18 to 2028-29. Out of the total outlay, Rs. 8,004 crore will be setup as a corpus with National Bank for Agriculture and Rural Development (NABARD). 

While the amount will be passed as a loan to NDDB and National Cooperative Development Cooperation (NCDC), Rs 2,001 Cr shall be end borrowers contribution, Rs 12 Cr will be NDDB/NCDC’s share and Rs 864 Cr shall be contributed by DADF towards interest subvention. The amount for interest subvention will be released to NABARD by DADF over a period of 12 years covering the entire loan repayment period from 2017-18 to 2028-29. This will enable End Borrowers to avail loan at a concessional interest rate of 6.5% per annum and invest this money towards upgrading existing infrastructure or create new ones. NDDB as one of the implementing agency will implement the scheme through milk cooperatives and producer companies. 

The dairy cooperatives as well as producer companies were requested to prepare project proposals for availing the loan assistance from DIDF scheme. The workshop provided a platform for discussions on various components of scheme, implementation arrangement, eligibility criteria, terms & conditions, process for DPR preparation and submission/approval under the scheme. Concerns of the stakeholders were also addressed.