Dairy Entrepreneurship Development Scheme 2014

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A centrally sponsored scheme implemented through NABARD with an objective to promote setting up of modern dairy farms for the production of clean milk, encourage heifer calf rearing, bring structural changes in the unorganized sector and generate self-employment.

Dairy Entrepreneurship Development Scheme 2014


  • Farmers, individual entrepreneurs, NGOs, companies, pensioners, groups of.
  • unorganized and organized sector etc. including self-help groups, dairy cooperative societies, milk unions, milk federations, etc.
  • An individual will be eligible to avail assistance for all the components under the scheme but only once for each component.
  • More than one member of a family can be assisted under the scheme provided they set up separate units with separate infrastructure at different locations. The distance between the boundaries of two such farms should be at least 500m.

Funding pattern

  • Entrepreneur contribution ( margin) – 10 % of the outlay ( minimum)
  • Back ended capital subsidy –25% for general and 33% for SC/ST.
  • Effective Bank Loan – Balance portion, Minimum of 40% of the outlay.


  • The repayment period will depend on the nature of the activity and cash flow and will vary between 3- 7 years. Grace period 3 to 6 months in case of dairy farms and up to 3 years for calf rearing units.

How to apply

Approach the nearest Veterinary Assistant Surgeon, Block Veterinary Officer, or the Chief Animal Husbandry Officer of the concerned District along with:

  • Affidavit of being unemployed and not a defaulter of any bank or financial institutions.
  • Photocopy of Ration card/State Subject.
  • Land papers for a mortgage if the loan amount exceeds Rs.1.00 lacs.
  • Photocopy of category certificate if any.
  • Three passport size photographs.
  • Copy of driving license if the unit is a Refrigerated vehicle.
  • Degree certificate of BVSc&AH in case of Mobile/Stationery Vet. Clinic.

Components which can be funded:

  • Establishment of small dairy units with crossbreed cows/graded buffaloes up to 10 animals = Rs. 5.00 lac for 10 animals ( minimum unit size is 2 animals and Maximum 10 animals).
  • Rearing of heifer calves crossbreed/ graded buffaloes- up to 20 calves = Rs. 4.80 lac for 20 calf unit (minimum unit size 5 calves and Maximum 20 calves).
  • Vermicompost (to be considered with milch animals and not separately) = Rs. 20,000/-
  • Purchase of milking machines/ milk testers/ bulk milk cooling units ( up to 2000 liter capacity) = Rs: 18 lac
  • Purchase of dairy processing equipment for manufacturing of indigenous milk products = Rs: 12 lac
  • Establishment of dairy product transportation facilities and cold chain = Rs: 24 lac
  • Cold storage facilities for milk and milk products. = Rs: 30 lac
  • Establishment of private veterinary clinics = Rs: 2.4 lac for mobile clinics and Rs. 1.80 lac for the stationary clinic.
  • Dairy marketing outlet/dairy parlour = Rs: 56,000/-

Pratima Singh

Pratima is a content writer at Moneymint. As a Finance enthusiast, she loves sharing tips and tricks to help others navigate the financial sphere.