Eligibility Criteria for the Participating Agencies

Participating Agencies fulfilling the following eligibility criteria will be eligible to avail interest subvention under the scheme:

1. The beneficiary (Participating Agency) should have a sanctioned loan / facility for working capital borrowing (including cash credit facility) from any Scheduled Commercial Banks/ Regional Rural Banks / Cooperative Banks / Financial Institutions for meeting the working capital requirement during the operational period of the scheme.
2. Participating Agency must be regular in repayment of loans to Financing Institution and has to first repay the loan installments, to avail the benefits under the scheme.
3. Interest subvention shall be provided for the outstanding working capital loan between 1st April 2020 and 31st March 2021.
4. Interests subvention shall be provided on back ended basis every month by NDDB to the FI after verifying the claim.
5. Participating Agency should pay back the procurement price to farmers on a regular basis and should be able to submit proof of that.
6. The Participating Agency should agree to provide monthly reports with day-wise details on opening, addition, reduction and closing balance of conserved commodities and such milk processing / operations reports as required by NDDB.

Products covered: Four conserved commodities – Skimmed Milk Powder, Whole Milk Powder, White Butter and Ghee are covered under the scheme.