Lok Sabha Question No. 1753 (UNSTARRED), answered on 2019-07-02
Subject: Dairy Processing and Infrastructure Development Fund
Ministry: FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
Asked by: Hemant Tukaram Godse

## GOVERNMENT OF INDIA MINISTRY OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING DEPARTMENT OF ANIMAL HUSBANDRY AND DAIRYING

LOK SABHA

UNSTARRED QUESTION NO.1753 TO BE ANSWERED ON 2 ND  JULY, 2019

## DAIRY PROCESSING AND INFRASTRUCTURE DEVELOPMENT FUND

1753. SHRI HEMANT TUKARAM GODSE:

Will the Minister of FISHERIES, ANIMAL HUSBANDRY AND DAIRYING

मत्स्यपालन , पशुपालन और डेयरी 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  for  modernising  and  raising  the capacity of dairy cooperatives; and
- d) if so, the details thereof?

## ANSWER MINISTER OF STATE FOR FISHERIES, ANIMAL HUSBANDRY AND DAIRYING (DR. SANJEEV KUMAR BALYAN)

- (a) Yes,  Department  of  Animal  Husbandry  and  Dairying  (DAHD),  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.
- (b) The details of the scheme are given at Annexure.
- (c) 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  modernize  milk  processing  capacity, value  added  product  processing  facilities  and  raise  the  capacity  of  eligible  Dairy Cooperatives as per the norms of the scheme.
- (d) The details of the components along with their outlays are given at 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 (DAHD) 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:

| No.   | Component                                                                                              | 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)   |
|-------|--------------------------------------------------------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|------------------------------------|
|       |                                                                                                        | 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, GoI                                                                     | Interest subvention from DAHD, GoI                      | Interest subvention from DAHD, GoI                      | Interest subvention from DAHD, GoI                      | Interest subvention from DAHD, 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                              |