MANU/PIBU/1166/2017

Department/Board : Press Information Bureau

Date : 12.09.2017

Cabinet approves implementation of the scheme "Dairy Processing and Infrastructure Development Fund"

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi has approved a Dairy Processing & Infrastructure Development Fund" (DIDF) with an outlay of Rs 10,881 crore during the period from 2017-18 to 2028-29.

Consequent to the Union Budget 2017-18 announcement, Dairy Processing & Infrastructure Development Fund will be set up as a corpus of Rs 8004 crore with National Bank for Agriculture and Rural Development (NABARD), the Expenditure Finance Committee has given approval for;

Initiation and setting up of Dairy Processing and Infrastructure Development Fund (DIDF) at a total scheme outlay of Rs 10881 crore. Out of Rs 10881 crore of financial outlay for project components of DIDF, Rs 8004 crore shall be loan from NABARD to National Dairy Development Board (NDDB) and National Dairy Development Cooperation (NCDC), Rs 2001 crore shall be end borrowers contribution, Rs 12 crore would be NDDB/NCDC's share and Rs 864 crore shall be contributed by DADF towards interest subvention. NABARD shall disburse Rs 2004 Cr, Rs 3006 Cr and Rs 2994 Cr during the year 2017-18, 2018-19 and 2019-20 respectively.

Allocation of Rs 864 Crore for meeting interest subvention will be released to NABARD over a period of 12 years covering the entire loan repayment period from 2017-18 to 2028-29.

The major activities of DIDF:

The project will focus on building an efficient milk procurement system by setting up of chilling infrastructure & installation of electronic milk adulteration testing equipment, creation/modernization/expansion of processing infrastructure and manufacturing faculties for Value Added Products for the Milk Unions/ Milk Producer Companies.

Management of DIDF:

The project will be implemented by National Dairy Development Board (NDDB) and National Dairy Development Cooperation (NCDC) directly through the End Borrowers such as Milk Unions, State Dairy Federations, Multi-state Milk Cooperatives, Milk Producer Companies and NDDB subsidiaries meeting the eligibility criteria under the project. An Implementation and Monitoring Cell (IMC) located at NDDB, Anand, will manage the implementation and monitoring of day-to-day project activities.

The end borrowers will get the loan @ 6.5% per annum. The period of repayment will be 10 years with initial two years moratorium.