NABARD revises norms for Doodh Ganga Project in Himachal

By: Ravinder Makhaik

Shimla: Having revised the central governments Venture Capital Fund (VCFS) scheme for dairy, other than the name even the norms have been changed for the new Dairy Entrepreneurship Development Schemes (DEDS), starting from September.

Instead of partial interest free loans, capital subsidy to be provided

AD Ratnoo, Chief General Manager of National Bank for Agriculture and Rural Development (NABARD) said the in place of a interest free loan upto 50 % under the VCF scheme , the revised DEDS scheme would provide the beneficiary a 25 % back end capital subsidy on the total project cost. For scheduled caste and scheduled tribe beneficiaries it would be 33.33 % capital subsidy.

While the entrepreneur would have to contribute a minimum of only 10 % of the outlay, the remaining portion would be a loan from the bank, he said.

The central government’s VCF scheme now named Dairy Entrepreneurship Development Schemes is being implemented in the state by NABARD, in collaboration with Himachal Pradesh government.

Components that can be financed under the new schemes are establishment of small dairy units that have upto 10 animals, rearing of heifer calves, vermin-compost (with milch animal units), purchase of milking machines, bulk milk cooling units, purchase of dairy processing equipment for manufacture of indigenous milk products, establishment of dairy products, transportation facilities and cold chain, cold storage facilities for milk and milk products, establishment of private veterinary clinics and dairy marketing parlours.

Assistance under the scheme would be purely credit linked and subject to sanction of the project by banks.
The Doodh Ganga Project launched Himachal Pradesh government in the 2009 was supported under the Venture Capital Fund Scheme so far.

The revised “Dairy Entrepreneurship Development Schemes (DEDS)” will change the pattern of assistance under Doodh Ganga Project.

The central government has made an overall budget provision of Rs. 32.40 crore for 2010-11 for the scheme said Ratnoo.