Lok Sabha Question No. 1180 (UNSTARRED), answered on 2018-12-18
Subject: Dairy Processing and Infrastructure Development Fund
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: G. HARI

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF ANIMAL HUSBANDRY, DAIRYING AND FISHERIES LOK SABHA UNSTARRED QUESTION NO.1180 TO BE ANSWERED ON 18 TH  DECEMBER, 2018

## DAIRY PROCESSING AND INFRASTRUCTURE DEVELOPMENT FUND

## 1180 SHRI G. HARI:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ षि और ककसान कल्याण मंत्री be pleased to state:

- a) whether  it  is  true  that  the  Government  has  launched  a  fund  titled  Dairy  Processing  and Infrastructure Development Fund;
- b) If so, the details thereof;
- c) whether the said fund would provide soft loans to modernise and raise the capacity of dairy cooperatives; and
- d) If so, the details thereof?

## ANSWER

## THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS' WELFARE (SHRIMATI KRISHNA RAJ)

(a) & (b):  Yes Madam, Department of Animal Husbandry, Dairying & Fisheries, Govt. Of India has  launched  Dairy  Processing  and  Infrastructure  Development  Fund  on  21-12-2017  with  a scheme outlay of Rs.10881 crore for implementation during 2017-18 to 2019-20. The details of the scheme are given at Annexure.

(c) & (d):  Under Dairy Processing and Infrastructure Development Fund, there is a provision for setting up of a corpus Rs.8004 crore with National Bank for Agriculture and Rural Development (NABARD)  to  provide  loans  to  modernise  milk  processing  capacity,  value  added  product processing facilities and raise the capacity of eligible dairy cooperatives as per the norms of the scheme.  The details of the components along with their outlays are given at Annexure.

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## Reply to LSQ No. 1180 due for answer on 18.12.2018

Annexure

## Dairy Processing & Infrastructure Development Fund (DIDF)

Consequent to the Union Budget 2017-18 announcement, DIDF has been set up as a corpus of Rs. 8004 crore with National Bank for Agriculture and Rural Development (NABARD). The Cabinet Committee on Economic Affairs (CCEA) in its meeting dated 12.09.2017 has approved the scheme. Out of Rs10881 crore of financial outlay for project components of DIDF, Rs. 8004 shall be loan from NABARD  to  National  Dairy  Development  Board  (NDDB)  /  National  Cooperative  Development Corporation (NCDC), Rs. 2001 crore shall be End Borrowers (EB) contribution, Rs. 12 crore would be NDDB/NCDC's share and Rs. 864 crore shall be contributed by Department of Animal Husbandry, Dairying and Fisheries (DADF) toward interest subvention.

- 2 The project  will  be  focus  on  building  an  efficient  milk  procurement  system  by  setting  up  of processing and chilling infrastructure & installation of electronic milk adulteration testing equipment at village level
3. The salient features of the scheme:
- I. 95 Lakh milk producers will be benefited by covering 50,000 villages.
- II. Establishment of 28000 Bulk Milk Coolers with 140 Lakh Litres per Day as additional milk chilling capacity.
- III. Providing 28000 Milk Testing Equipments to check adulteration in milk.
- IV. Creation of additional 210 Metric Ton per Day Milk Drying capacity.
- V. Modernisation, expansion and creation of Milk Processing  capacity  of  126  Lakh  Litres per Day.
- VI. Creation of Infrastructure of 59.78 lakh Litres per Day capacity for Value-Added Dairy products to ensure remunerative prices to milk producers.

## Component -wise Sources of funding:

|     |                                                                                                        | Financial Outlays (Rs. in Crore)                        | Financial Outlays (Rs. in Crore)                        | Financial Outlays (Rs. in Crore)                        | Financial Outlays (Rs. in Crore)                        | Financial Outlays (Rs. in Crore)   |
|-----|--------------------------------------------------------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|------------------------------------|
| No. | Component                                                                                              | NABARD Loan                                             | EBs' contribution                                       | NDDB's Contribution                                     | NCDC's Contribution                                     | Total Outlay                       |
| A   | Modernisation & creation of new - milk processing facilities and for Value Added Products (Fund share) | 5577 (80%)                                              | 1395 (20%)                                              | 0                                                       | 0                                                       | 6972                               |
| B   | Chilling Infrastructure                                                                                | 2063 (80%)                                              | 515 (20%)                                               | 0                                                       | 0                                                       | 2578                               |
| C   | Electronic Milk Adulteration Testing Equipment                                                         | 364 (80%)                                               | 91 (20%)                                                | 0                                                       | 0                                                       | 455                                |
| D   | Project Management & Learning                                                                          | 0                                                       | 0                                                       | 6 (50%)                                                 | 6 (50%)                                                 | 12                                 |
|     | Total                                                                                                  | 8004                                                    | 2001                                                    | 6                                                       | 6                                                       | 10017                              |
|     | Interest subvention from DAHD&F, GoI                                                                   | Interest subvention from DAHD&F, GoI                    | Interest subvention from DAHD&F, GoI                    | Interest subvention from DAHD&F, GoI                    | Interest subvention from DAHD&F, GoI                    | 864 (100%)                         |
|     | Total Project Cost including interest subvention amount                                                | Total Project Cost including interest subvention amount | Total Project Cost including interest subvention amount | Total Project Cost including interest subvention amount | Total Project Cost including interest subvention amount | 10881                              |

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