Dairy Venture Capital Fund (Doodh Ganga Yojna)

This scheme has been modified in September 2010 and named as “Dairy Entrepreneurship Development Scheme”. In this modified scheme, there is a provision of back ending subsidy instead of interest free loan.

Objectives of Scheme:-

1. To set up of modern dairy farms for production of clean milk.
2. To encourage heifer calf rearing for conservation and development of good breeding stock.
3. To bring structural changes in unorganized sector so hat initial processing of milk can be taken up at village level.
4. To upgrade traditional technology to handle milk on commercial scale
5. To generate self employment and provide infrastructure mainly for unorganized dairy sector.

Pattern of assistance:- 
Entrepreneur contribution (Margin)-10% of outlay (Minimum), back ended capital subsidy 25% of the outlay for general category and 33% for SC/ST farmers subject to component wise ceiling which will be adjusted against the last few installments of repayment of bank loan. Effective Bank Loan- Balance portion, minimum of 40% of outlay.

Implementing Agency
The scheme will be implemented through National Bank for Agriculture and Rural Development (NABARD), who will be the nodal agency for the scheme.

Eligibility
Farmers, Self Help groups, Non-Government Organizations, Cooperative societies, Companies, etc. An individual will be eligible to avail assistance for all components under the scheme but only once for each component. 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 500 m.

Components that can be financed, indicative unit cost and pattern of assistance are given below:-

Sr.No.	Component	Unit cost	Pattern of Assistance
i	Establishment of small dairy units with crossbred cows/indigenous descript milch cows like Sahiwal, Red Sindhi, Gir, Rathi etc/graded buffaloes up to 10 animals.	Rs. 5.00 Lakh for 10 animlas unit-minimum unit size is 2 animals with an upper limit of 10 animals	25% of the outlay (33.33% for SC/ST farmers,) as back ended capital subsidy subject to a ceiling of Rs. 1.25 lakh for a unit of 10 animals (Rs. 1.67 lakh for SC/ST farmers,). Maximum permissible capital subsidy is Rs. 25000 (Rs. 33,300 for SC/ST farmers) for a 2 animal unit. Subsidy shall be restricted on a prorate basis depending on the unit size.
ii	Rearing of heifer claves bred, indigenous descript milch breeds of cattle and of graded buffaloes- up to 20 claves	Rs 4.80 lakhs for 20 calf unit- minimum unit size of 5 claves with an upper limit of 20 calves	25% of the outlay (33.33% for SC/ST farmers,) as back ended capital subsidy subject to a ceiling of Rs. 1.20 lakh for a unit of 20 calves (Rs. 1.60 lakh for SC/ST farmers,). Maximum permissible capital subsidy is Rs. 30,000 (Rs. 40,000 for SC/ST farmers) for a 5 calf unit. Subsidy shall be restricted on a prorate basis depending on the unit size.
iii	Vermicompost with milch animal unit (to be considered with milch animlas/small dairy farm and not separately)	Rs. 20,000/-	25% of the outlay (33.33% for SC/ST farmers) as back ended capital subsidy subject to a ceiling of Rs. 5,000/- (Rs. 6700/- for SC/ST farmers).
iv	Purchase of milking machines/milk testers/bulk milk cooling units (upto 2000 lit capacity)	Rs. 18 lakh	25% of the outlay (33.33% for SC/ST farmers) as back ended capital subsidy subject to a ceiling of Rs. 4.50 lakh (Rs. 6.00 lakh for SC/ST farmers)
v	Purchase of dairy processing equipment for manufacture of indigenous milk products	Rs. 12 lakh	25% of the otlay (33.33% for SC/ST farmers) as back ended capital subsidy subject to a ceiling of Rs. 3.00 lakh (Rs. 4.00 lakh for SC/ST farmers)
vi	Establishment of dairy product transportation facilities and cold chain	Rs. 24 lakh	25% of the outlay (33.33% for SC/ST farmers) as back ended capital subsidy subject to a ceiling of Rs. 6.00 lakh (Rs. 8.00 lakh for SC/ST farmers).
vii	Cold storage facilities for milk and milk products	Rs. 30 lakh	25% of the outlay (33.33% for SC/ST farmers) as back ended capital subsidy subject to a ceiling of Rs. 7.50 lakh (Rs. 10.00 lakh for SC/ST farmers).
viii	Establishment of private veterinary clinics	Rs. 2.40 lakh for mobile clinic and Rs. 1.80 lakh for stationary clinic	25% of the outlay (33.33% for SC/ST farmers) as back ended capital subsidy subject to a ceiling of Rs. 60,000/- and Rs. 45,000/- (Rs. 80,000/- and Rs. 60,000/- for SC/ST farmers) respectively for mobile and stationary clinics.
ix	Dairy marketing outlet / Dairy parlour	Rs. 56,000/-	25% of the outlay (33.33% for SC/ST farmers) as back ended capital subsidy subject to a ceiling of Rs. 14,000/- (Rs. 18600/- for SC/ST farmers).

Due to paucity of funds this scheme had been kept in abeyance from June 2010 to May 2013. In the last week of May 2013 funds to the tune of Rs. 12 crore have been made available by GOI.

since inception of DEDS during Sept. 2010 to March 2013. NABARD has sanctioned 5137 No. of cases in which 23157 NO. of milch Cows/Buffaloes have been purchased and released for the tune of Rs. 27.29 crore as subsidy.