14. Dairy Entrepreneurship Development Scheme

Objectives

• To encourage heifer calf rearing thereby improving the quality of animals
• To improve the infrastructure for processing of milk especially at the village level like mini dairy plant, Refrigerated milk tanker,
• To bring about up gradation of quality and technology to handle milk on a commercial scale like cold storage, milking machine, milk cooling unit.
• To generate self employment and provide infrastructure mainly for unorganized sector like milk parlour
• To promote setting up of modern dairy farms for production of clean milk

Eligibility

1. Farmers, individual entrepreneurs, NGOs, companies, groups of unorganized and organized sector etc. Groups of organized sector include self help groups, dairy cooperative societies, milk unions, milk federations etc.
2. An individual will be eligible to avail assistance for all the components under the scheme but only once for each component
3. More than one member of a family can be assisted under the scheme provided they set up separate units with separate infrastructure at different locations. The distance between the boundaries of two such farms should be at least 500m.

Purpose: Under the scheme, loans can be granted for purchase of brand new vehicles such as two wheelers mopeds, motor cycles, scooters, three wheelers, four wheelers, carriages, van, maxi cabs, jeep, car, lorry,truck etc, with accessories for supervising agricultural operation / management of farm/ estate and for transportation of agricultural produce/ inputs, labour etc.

Rate of Interest

Rs.50,000-2 Lacs	1.25% above Base Rate Eff. Rate-11.50
Above Rs.2 Lacs- 5 Lacs	2.25% above Base Rate, Eff. Rate – 12.50
Above 5 Lacs - 25 Lacs	3.25% above Base Rate, Eff. Rate – 13.50

Marging / Funding Pattern
Entrepreneur contribution ( margin)- 10 % of the outlay ( minimum)
Back ended capital subsidy - as indicated in the above table
Effective Bank Loan - Balance portion, Minimum of 40% of the outlay

Linkage with Credit: Assistance under the scheme would be purely credit linked and subject to sanction of the project by eligible financial institutions
Processing Charges: An upfront fee of 0.5% of the loan amount. Min- Rs.1000/- Max Rs. 10,000/- and (Min. Rs.500 for Two wheelers)
Repayment: Repayment Period will vary between 3- 7 years. Grace period may range from 3 to 6 months in case of dairy farms, to 3 years for calf rearing units (as per needs of individual projects).

Security:
a. Upto Rs.1 Lakh: Primary: Hypothecation of the assets created out of Bankfinance.
b. Above Rs.1 Lakh: In addition to the primary security, collateral security by mortgage of property or personal guarantee.
 
Time Limit for Completion of the Project
(a) Time limit for completion of the project (except for calf rearing units wheredisbursements are expected to continue till two years) would be as envisaged       under the project, subject to maximum of 9 months period from the date of disbursement of the first installment of loan which may be extended by a       further period of 3 months, if reasons for delay are considered justified by the branch.
(b) If the project is not completed within the stipulated period, benefit of subsidy shall not be available and advance subsidy placed with the branch, if any,       will have to be refunded forthwith to NABARD

Adjustment of Subsidy: The capital subsidy will be back ended with minimum lock-in period of 3 years.The capital subsidy will be adjusted against the last few installments of repayment of bank loan.