Interest Subvention on working capital loans

The component of “Interest Subvention on working capital loans” with a total outlay of Rs. 203 crore for supporting the Producer Owned Institutions such as Milk Unions, Milk Federations, Farmer Owned/ Milk Producer Companies to overcome problems being faced due to COVID19 has been approved by Government of India for the year 2020-21. The above component has been included under the scheme “Supporting Dairy Cooperatives and Farmer Producer Organisations engaged in dairy activities (SDCFPO)”. The scheme is being implemented by Department of Animal Husbandry and Dairying (DAHD), Government of India through NDDB.

Under this component, interest subvention @2% per annum on secured/unsecured working capital loans shall be provided to the eligible organisations. For prompt and timely repayment, additional 2% interest subvention will be payable at the end of the loan repayment period.