National Programme for Dairy Development restructured

Pashu Sandesh, 02 August 2023

Department of Animal Husbandry and Dairying, Government of India is implementing the “National Programme for Dairy Development (NPDD)” scheme across the country since Feb-2014 with the objective of creating/strengthening infrastructure for the production of quality milk, Procurement, Processing and Marketing of Milk and Milk products.

The scheme has been restructured/realigned in July 2021. The restructured NPDD Scheme will be implemented from 2021-22 to 2025-26 with a total outlay of Rs.1790 crore. The restructured scheme has two components:                 

Component'A focuses towards creating/strengthening infrastructure for quality milk testing equipment as well as primary chilling facilities.

Component'B' (Dairying through Cooperatives-DTC) provides financial assistance from Japan International Cooperation Agency (JICA) for the creation of necessary dairy infrastructure, providing market linkages for the produce in villages and strengthening capacity building of stake-holding institutions from village to State level.

Financial Progress:

Component A:

191 projects in 28 States and 2 Union territories have been approved with a total cost of Rs.3053.03 crore (Central Share Rs.2321.22 crore) from 2014-15 to 2022-23 (30.06.2023).  A total sum of Rs.1795.60 crore has been released for the implementation of these projects up to 18.07.2023. An amount of Rs. 1321.53 crore has been utilized under the approved projects.

Component B:

In total 22 projects have been approved with a total project cost of Rs 1130.64 Cr having a loan component of Rs705.54 Cr, grant component of Rs 329.70 Cr and Producer Institutions (PIs) share of Rs 95.37 Cr. A total grant of Rs 9.30 Cr has been released to National Dairy Development Board for further disbursement to PIs for the implementation of the projects.

The government of India (GoI) has approved the “Dairying through Cooperatives-Key to Sustainable Livelihood” project as Component B of the National Programme for Dairy Development (NPDD) scheme. The project will be implemented from 2021-22 to 2025-26 and will continue till 2027-28 with a total outlay of Rs. 1568.28 Crore comprising Rs.924.56 Crore as an Official Development Assistance(ODA) loan from Japan International Cooperation Agency (JICA), Rs.475.54 Crore as Government of India’s (GoI) contribution and Rs.168.18Croreas State/Participating Institution’s (PI) contribution.

The major objective of the project is to increase sales of milk and dairy products by increasing farmers' access to organized markets, upgrading dairy processing facilities and marketing infrastructure and enhancing the capacity of producers-owned institutions, thereby contributing to an increase in returns to milk producers in the project area”. The project is being implemented in 9 states namely Bihar, Uttar Pradesh, Punjab, Rajasthan, Madhya Pradesh, Andhra Pradesh, Telangana, Uttarakhand and West Bengal. The schemes support the establishment of Milk Processing Facilities and Manufacturing Facilities (milk & milk products and cattle feed).

Dairy Processing & Infrastructure Development Fund (DIDF) :

Dairy Processing & Infrastructure Development Fund (DIDF) was launched in December 2017 with the major objective of creating/strengthening Milk Processing, Value addition & chilling facilities for Dairy Co-operative, Multi-State Dairy Cooperative, Milk Producer Companies (MPC), NDDBs subsidiaries, Self Help Groups (SHGs) and      Farmer Producer Organisations (FPOs) registered under State Cooperative and Companies Act with total outlay of Rs.11,184 Crore (loan component of Rs.8,004 Crore).  DIDF is to be implemented from 2018-19 to 2022-23 and the repayment period is upto 2030-31with spillover to the first quarter of FY2031-32. Under the scheme, NABARD raises the fund from the market and disburses this loan to NDDB/NCDC which is then disbursed by them to End Borrowers. GoI provides a 2.5% interest subvention to NABARD apart from assisting the establishment of processing plants for milk and milk products, the scheme also assists Cattle feed/feed supplement plants.

4 projects with a total outlay of Rs.420.19 Cr (Loan-Rs.317.92Cr) have been approved by Department. Under the Entrepreneurship Development Programme of the National Livestock Mission (NLM) scheme, there is a provision for establishing animal feed and fodder processing units.