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Central Govtschemes

Dairy Processing and Infrastructure Development Fund (DIDF)

Concessional loans at 6.5% with interest subvention for modernising milk processing and chilling infrastructure.

About this scheme

DIDF was set up in 2017-18 with a corpus of about Rs 11,184 crore, administered by NABARD through the National Dairy Development Board and the National Cooperative Development Corporation. It finances milk processing plants, chilling infrastructure, electronic milk adulteration testing equipment, and manufacturing facilities for value-added dairy products. Loans carry an interest rate of 6.5% per annum, with the Department of Animal Husbandry and Dairying paying interest subvention to bridge the gap with the market rate. The repayment period is 10 years including a 2-year moratorium.

Benefits

  • Concessional loan at 6.5% per annum with government interest subvention
  • Repayment over 10 years including a two-year moratorium
  • Funding for milk processing, chilling and value-added product plants
  • Support for electronic milk adulteration testing machines
  • Higher and more stable milk procurement prices for member farmers

Who can apply

  • Milk Unions, State Dairy Federations and Multi-State Milk Cooperatives
  • Milk Producer Companies and NDDB subsidiaries
  • Farmer Producer Organisations in the dairy sector
  • End borrower must contribute the required margin money

Documents required

  • Registration certificate of the cooperative or producer company
  • Detailed Project Report with cost estimates
  • Audited financial statements for three years
  • Land ownership or lease documents
  • Board resolution approving the loan

How to apply

  • 1Submit the Detailed Project Report to NDDB or NCDC
  • 2Technical and financial appraisal by the implementing agency
  • 3Project approved and loan sanctioned by NABARD
  • 4Funds disbursed in tranches against project milestones
  • 5Interest subvention claimed by the implementing agency from DAHD

Important dates

Scheme period
Extended; check DAHD notification for the current window

Available in: All India

Visit the official portal