Objectives:
To provide financial assistance and guidance to Producers’ Owned Institutions (POIs) in the dairy cooperative sector, enabling them to evolve as strong, self-reliant and competitive business units, thereby contributing to increase in returns to milk producers.
The core functions of the Finance Group of NDDB are:
- To support Producers’ Owned Institutions (POI)s through Project Financing
- Financial Surveillance and Loan Recovery
- Co-ordination of Project Implementation and Monitoring
Details of on-going schemes or projects
Ø NDDB’s schemes:
NDDB provides financial assistance in the form of long-term loan and working capital loan to dairy cooperatives to meet their financial requirements for enhancing their productivity & efficiency, and promote overall growth of the dairy industry.
- Financial Assistance for infrastructure activities, skill development, trainings, extension activities and awareness programmes
A. Funding for infrastructure
Activities: Funding under the scheme is available for following activities:
- Modernisation/ Expansion/ Creation of milk processing infrastructure
- Installation of Bulk Milk Coolers at village level
- Creation of Marketing infrastructure
- Activities for improvement in operational efficiency
- Creation/expansion of Feed and feed supplement manufacturing infrastructure
- Infrastructure for manufacturing of dairy equipment, nutraceuticals/ biologicals/ vaccines etc.
- Biogas plants along with allied infrastructure
Pattern of assistance: The financial assistance under this scheme is provided by way of Interest bearing Loan (IBL), with maximum of 80% of project outlay as Loan from NDDB and Minimum 20% as Borrowers contribution.
Rate of interest: Floating rate of interest as communicated from time to time.
The rate of interest with effect from 01 January 2025 is 8.35% per annum.
Downloads
- Guidelines, eligibility criteria and lending terms & conditions
- Latest Circular – Rate of Interest (with effect from 1 January 2025)
B. Funding for training programmes
Activities: Funding under the scheme is available for following activities:
- Skill Development
- Manpower training and extension activities
- Awareness programmes for milk producers / consumers
Financial assistance for the training/ programmes will be provided to Cooperative Milk Unions/ Federations and Milk Producer Companies. The financial assistance will be on a case to case basis purely on merit.
Pattern of assistance: The financial assistance under this scheme is available by way of Grant, with a maximum of 50% of cost of approved training/ programme as Grant from NDDB.
Downloads
- Guidelines for funding for training and skill development
- Term Loan for urgent purchase of Dairy Equipment/ Machinery by Producers’ Owned Institutions
Activities: NDDB provides term loan to Producers’ Owned Institutions (POIs) to meet their urgent need to purchase equipment and machineries of the dairy, cattle feed or feed supplement plants, including civil works, required for their efficient operation, refurbishment, modernization and upgradation, etc.
Pattern of assistance: The financial assistance is available under the scheme with maximum Loan upto Rs. 10 Crore per eligible POI for a project. POI can avail loan upto 80% of the project cost.
Downloads
- Guidelines
- Working Capital Loan
Activities: NDDB provides Working Capital loan to Dairy Co-operatives (including Milk Unions / Federations / Producer Companies) to tide over its financial need when their capital is likely to get locked up in the form of inventory of milk products/ raw materials.
Pattern of assistance: The financial assistance is available based on the maximum 80% of the peak working capital requirement of the applicant.
Rate of interest: Interest will be charged at a floating rate of interest or at such rate as may be decided by NDDB from time to time on monthly rent basis.
The rate of interest is 8.00% p.a. with effect from 1st January 2025 on a floating basis.
Downloads
- Guidelines
- Application Format
- Latest Circular Rate of Interest with effect from 1 January 2025
4. Revitalising Promising Producers’ Owned Institutions
Activities: NDDB is implementing the scheme Revitalising Promising Producers’ Owned Institutions” with the objective “to support the promising Producers’ Owned Institutions to strengthen their overall business operations, so as to increase their market share and create self-sustaining institutions benefiting all concerned.”
Pattern of assistance: The financial assistance is available to POIs with maximum Grant-in-aid up to Rs. 3 Crore and maximum Interest Free Secured Loan up to Rs. 5 Crore.
Downloads
- Guidelines
Ø Government schemes:
NDDB as an Implementing Agency for following Government schemes helps in successful implementation of the schemes, through continuous monitoring and coordination between various stakeholders.
- Supporting Dairy Cooperatives and Farmer Producer Organizations engaged in dairy activities (SDCFPO)
Activities: SDCFPO is a scheme of Department of Animal Husbandry and Dairying (DAHD), Government of India, being implemented through NDDB, for availing interest subvention on working capital loans availed by eligible institutions.
Pattern of assistance: Under this component, interest subvention @2% per annum is provided on working capital loans borrowed for stock of conserved dairy commodities. For prompt and timely repayment, additional 2% interest subvention is payable at the end of the loan repayment period.
For further details of the scheme regarding components/activities, project area, project period, project outlay, eligible institutions, funding pattern, please refer:
Downloads
- Adminstratice_Approval_of_SDC_FPO_2024_25 and Guidelines
- Format for Application
- Format for Release Request
- Format for Interest Certificate
- Frequently Asked Questions (FAQ)
- “Dairying Through Cooperatives (DTC) – Component B of NPDD scheme
“Dairying Through Cooperatives (DTC) – component B of National Programme for Dairy Development (NPDD) scheme of Department of Animal Husbandry and Dairying (DAHD), Government of India, is being implemented through NDDB. The loan under the scheme is provided by the Japan International Cooperation Agency (JICA).
For further details of the scheme regarding components/activities, project area, project period, project outlay, eligible institutions, funding pattern, please refer: https://nddb.cityholdingtrade.co.uk/dairying-through-cooperatives-key-to-sustainable-livelihood/
- Animal Husbandry Infrastructure Development Fund (AHIDF)
Animal Husbandry Infrastructure Development Fund (AHIDF) is a scheme of the Department of Animal Husbandry and Dairying (DAHD), Government of India. The cooperatives are eligible borrowers and NDDB is an eligible financial institution under the scheme. Under the scheme, interest subvention of 3% p.a. is provided by Government of India to the eligible borrowers.
For further details of the scheme regarding components/activities, project area, eligibility criteria, eligible institutions, source of funding and other terms & conditions, please refer:
https://dahd.gov.in/schemes/programmes/ahidf