On September 12,2017, Cabinet Committee on Economic Affairs(CCEA) approved a “Dairy Processing & Infrastructure Development Fund” (DIDF) with an outlay of Rs10,881 crore during the period from 2017-18 to 2028-29.This fund will give new impetus to the dairy industry and to people relying on it.The project will be implemented by National Dairy Development Board (NDDB) and National Dairy Development Cooperation (NCDC).
The objective of the fund : –
i)Building an efficient milk procurement system by setting up of cold storage infrastructure.
ii)Installation of electronic milk adulteration testing equipment.iii)Creation/modernization/expansion of processing infrastructure and manufacturing faculties for Value Added Products for the Milk Unions/ Milk Producer Companies.
The stakeholders share: –
i)Rs 8004 crore shall be loan from NABARD to National Dairy Development Board (NDDB) and National Dairy Development Cooperation (NCDC),
ii)Rs 2001 crore shall be end borrowers contribution,
iii)Rs 12 crore would be NDDB/NCDC‘s share
iv)Rs 864 crore shall be contributed by DADF towards interest subvention. (Interest subvention in Indian context means the subsidygiven helps the loan borrower in not having to pay the total interest on a loan amount. Therefore, the government pays part of the interest amount for the borrower, thereby lessening the borrower’s overall repayment burden)
v)The end borrowers will get the loan @ 6.5% per annum. The period of repayment will be 10 years with initial two years moratorium. The respective State Government will be the guarantor of loan repayment.
The Fund’s Potential : –
i)95,00,000 farmers in about 50,000 villages would be benefitted.
ii)It will generate direct and indirect employment opportunities for skilled, semi-skilled and unskilled manpower thereby utilising India’s demographic dividend
iii) The net worth and profit of milk co-operatives will rise.