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F.NO.l-I/06-DP _:ii;
Government of India
Ministry of Agriculture
Department of Animal Husbandry, Dairying & Fisheries

Krishi Bhawan, New DfL!.hi-ll000l

Dated the 0 g'May, 2008.
OFFICE MEMORANDU~

Subject: Central Sector Plan Scheme -"DAIRY VENTURE C~ITAL FUND" implementation
during .11thPlan period -administrative approval for the year 2008-09

With reference to the OM No.l-I/2006-DP dated 27th April 2007, it is regarding the
issuance of Administrative approval of the Central Sector Plan Scheme- DAIRY VENTURE
CAPITAI- FUND" for the year 2008-09,

2. Objective of the scheme

To generate self employment and providing infrastructure mainly to the unorganized sector
for making improvement in the quality resulting in food safety and to help in bringing a significant
portion of unorganized sector in the ambit of organized sector that will result in increasing the
commercial viability of the activities,

3. Pattern of Assistance .
.Entrepreneur's contribution 10%" .
.
.Interest free Loan from revolving fund provided by GOI 50%
.Bank loan at interest applicable for agricultural activities 40%

Government of India will subsidize the interest component applicable for agricultural
,
activities to the extent of 50% only in case of regular/timely repayment of loan by the beneficiary,

4. The scheme will be implemented through National Bank for Agriculture and Rural
Development (NABARD), which will be the nodal agency for the scheme. The scheme has been
approved with the guidelines given in the para 6,
"'1'Y)t~-
Contd",2/
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5. The budget provision for the scheme during 2008-09 is Rs.40.00 crores (including Rs.4.00
crores for NE states)

6. The guidelines for the approval of the project under the schemeshall be as below:
i) The Government of India will release its share to NABARD, which will be maintained
by them as revolving fund. .

ii) The scheme will be extended to agricultural farmers/individual entrepreneurs and groups
of all sections of unorganized as well as organized sector.
-iii) The components, which can be funded under the scheme, are given below. However,
they may be funded individually or in combination.

SI.No. Component Maximum total project cost*

._(Rs. in lakh~ ,
1. Establishment of small dairy farms- Rs.3.00 lakhs per unit (upto ten animals)
Ten animal unit (buffaloes/cross breed -Any Non Operation Flood areas.
cows) for milk production -The total cost depends on the
infrastructural facilities required.
2. Purchase of milking machines / Rs.15.00 lakhs
milkotester / bulk milk cooling unit Milking Machine, Milk-o-tester
etc. Bulk Milk Cooling units (upto 2000 Its
c~aci!Yl
3. Purchase of dairy processing Rs.I0 lakhs per unit
equipment for manufacturing -Unit cost depends upon the quantum of
indigenous milk products. milk to be handled and the type of products
to be manufactured .
-The total cost depends' upon the
investment on civil structures, type and
source of machinery.
4. Establishment of dairy product Rs.20 lakhs per unit. .
transportation facilities including cold -Unit cost depends upon the quantum of
chain. milk/milk products to be transported /
j handled and the type of products to be
transported
-The total cost depends upon the
investment on type and source of transport
vehicle and machin~
5. Cold storage facilities for milk and Rs. 25 lakhs per unit
milk products. -Unit cost depends upon the quantum of
milk/milk products to be stored and the
.type of products to be stored
-While the cost depends upon the
investment on type and source of
machineryused.
f"r1I1\1\-z--
Contd...3/
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Distribution:
1. Principal Accounts Officer, Ministry of Agriculture, Department of Animal Husbandry and
Dairying, 16, Akbar Road Hutments, New Delhi-II 0011.
2. The Accountant General, Commerce, Works and Miscellaneous, AGCR Building, Near
ITO, New Delhi-I 10002.
3; Chief Controller of Accounts, Department of Agriculture and Cooperation, Krishi Bhavan,
New Delhi.
4. Advisor (.Agriculture), Planning Commission, Yojana Bhavan, New Delhi. ~~,
~ 5. Additional Secretary & Financial Advisor, Deptt. of Animal Husbandry & Dairying, Krishi

Bhavan, New Delhi

6. Chief General Manager, Technical Service Department, NABARD, C-24, 'G' Block,
Bandra-Kurla Complex, Bandra (East), Mumbai -400 051
~
7. Joint Secretary (Admn.), Room No.I99, Ministry of Rural Development, Krishi Bhawan,
New Delhi.
8. Joint Secretary (PF-II), Ministry of Finance, Department of Expenditure, North Block, New
Delhi.
9. Joint Secretary, Ministry of Finance, Department of Economic Affairs, Banking Operation
and Administration Division, Room No.6, 3rd Floor, Jeevan Deep Building, Parliament
Street, New Delhi.
10. Managing Directror, NDDB, P.B.No.40, Anand 388001.
11. AC (P) and DC (LH) .
.' .

Copy for information to: PPS to Secretary (AHD&F)/ PS to JS (A&DD)/ PA to DS. (DD).

/ nnlA
(M.R.Sharma)

, Under Secretary to Government of India