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.   Modernisation/ 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/ biologicals/ vaccines etc.

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

Details of Financial Assistance

Borrower’s margin

Loan from NDDB

Rate of Interest (Floating)

Minimum 20%

Maximum 80%

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

Floating Interest Rate:

* With effect from 1st November 2020:  6.55% per annum.

Circular - Rate of interest with effect from 1st November 2020

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 per cent 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.

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