Dairy Entrepreneurship development scheme

Dairy farming is an excellent opportunity for self-employment and income generation in India. In an attempt to further the interest and development of this field, the government has the perfect funding solution with the Dairy Entrepreneurship Development Scheme.


The Dairy Entrepreneurship Development Scheme offers financial assistance in the form of interest free loans (IFL) to the beneficiary.


The following table states the amount of subsidy offered for each component:

Serial No. Component Unit cost Pattern of assistance
No. of units Farmer category Subsidy outlay (%) Subsidy limit (₹)
1. Establishment of small dairy units with crossbred cows/ indigenous milk cows like Sahiwal, Red Sindhi, Gir, Rathietc / graded buffaloes up to 10 animals ₹5.00 lakh for maximum 10 animal unit – minimum unit size is two animals 10 animals Others 25.00 ₹1.25 lakh
SC/ST farmers 33.33 ₹1.67 lakh
2 animals Others 25.00 ₹25,000.00
SC/ST farmers 33.33 ₹33,300.00
2. Rearing of heifer calves – cross bred, indigenous descript milch breeds of cattle and of graded buffaloes – up to 20 calves ₹4.80 lakh for maximum 20 calf unit – minimum unit size of 5 calves 20 calves Others 25.00 ₹1.20 lakh
SC/ST farmers 33.33 ₹1.60 lakh
5 calves Others 25.00 ₹30,000.00
SC/ST farmers 33.33 ₹40,000.00
Farmer category Subsidy outlay (%) Maximum ceiling (₹)
3. Vermicompost (With milch animal unit. To be considered with milch animals and not separately) ₹20,000.00 Others 25.00 ₹5,000.00
SC/ST farmers 33.33 ₹6,700.00
4. Purchase of milking machines/milk testers/bulk milk cooling units (up to 2,000 litre capacity) ₹18.00 lakh Others 25.00 ₹4.50 lakh
SC/ST farmers 33.33 ₹6.00 lakh
5. Purchase of dairy processing equipment for manufacturing milk products ₹12.00 lakh Others 25.00 ₹3.00 lakh
SC/ST farmers 33.33 ₹4.00 lakh
6. Establishment of dairy product transportation facilities and cold chain ₹24.00 lakh Others 25.00 Rs,6.00 lakh
SC/ST farmers 33.33 ₹8.00 lakh
7. Cold storage facilities for milk and milk products ₹30.00 lakh Others 25.00 ₹7.50 lakh
SC/ST farmers 33.33 ₹10.00 lakh
8. Dairy marketing outlet / Dairy parlour ₹56,000.00 Others 25.00 ₹14,000.00
SC/ST farmers 33.33 ₹18,600.00
      Clinic Category Subsidy outlay Maximum ceiling (₹)
9. Establishment of private veterinary clinics Mobile clinic – ₹2.40 lakh and Stationary clinic – ₹1.80 lakh Mobile Others 25.00 ₹60,000.00
SC/ST farmers 33.33 ₹80,000.00
Stationery Others 25.00 ₹45,000.00
SC/ST farmers 33.33 ₹60,000.00

The funding pattern would be as follows –

  • Entrepreneur contribution – Minimum 10%of the outlay
  • Back ended subsidy – as mentioned in the above table
  • Effective bank loan – Balance portion, minimum 40% of the outlay

Eligibility Criteria:

What is the eligibility criteria for this scheme?

The eligibility criteria for this scheme is as follows:

  • Farmers, individual entrepreneurs, NGOs, companies, groups of the unorganised and organised sector (self-help groups, dairy cooperative societies, milk unions, milk federations etc.)
  • 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.


How can a beneficiary apply for this scheme?

The beneficiary needs to apply to the bank for sanctioning of the project.

List of eligible financial institutions where the beneficiary can apply for the subsidy is listed below:

  • Commercial Banks
  • Regional Rural Banks
  • State Cooperative Banks
  • State Cooperative Agriculture and Rural Development Banks
  • Such other institutions, which are eligible for refinance from NABARD

An individual can avail assistance for all the components under the scheme but can apply only once for    each component

For the application form, please click here.

For more information about this scheme, kindly click here.