Dairy Processing and Infrastructure Development Fund (DIDF)

Dairy Processing and Infrastructure Development Fund (DIDF) - Enhancing Dairy Sector Growth

DIDF in Brief:

• The Dairy Processing and Infrastructure Development Fund (DIDF) stands as a pioneering initiative by the Government of India to bolster the infrastructure of the dairy sector. Launched with the vision of modernizing and augmenting dairy processing facilities across the nation, DIDF aims to invigorate the dairy industry's growth trajectory. By providing financial assistance and incentives, DIDF seeks to empower dairy farmers, cooperatives, and entrepreneurs to leverage advanced processing technologies, thereby enhancing productivity and quality in the dairy sector. The Dairy Processing & Infrastructure Development Fund (DIDF) was established with a corpus of Rs. 8,004 crore in response to the Union Budget 2017-18 announcement. This fund, administered by the National Bank for Agriculture and Rural Development (NABARD), aims to provide subsidized loans at a rate of 6.5% to capital-stressed milk cooperatives. The primary goal is to facilitate the replacement of aging chilling and processing plants while also incorporating value-added product facilities.
• During a meeting dated 12.09.2017, the Cabinet Committee on Economic Affairs (CCEA) approved the scheme. The total financial outlay for project components of DIDF amounts to Rs. 10,881 crore. This includes Rs. 8,004 crore as a loan from NABARD to the National Dairy Development Board (NDDB) and the National Cooperative Development Corporation (NCDC). Additionally, Rs. 2,001 crore is expected from end borrowers as their contribution, with NDDB/NCDC providing Rs. 12 crore and the Department of Animal Husbandry and Dairying (DAHD) contributing Rs. 864 crore toward interest subvention.
• The project's focus is on enhancing milk procurement systems by establishing processing and chilling infrastructure and implementing electronic milk adulteration testing equipment at the village level.
• Eligible End Borrowers (EEBs) include State Dairy Federations, District Milk Unions, Milk Producers Companies, Multi-State Cooperatives, and NDDB subsidiaries nationwide.
• Originally slated for funding from 2017-18 to 2019-20, the scheme's timeline has been revised to span from 2018-19 to 2022-23. Furthermore, the repayment period has been extended to 2030-31, with provisions for spill-over into the first quarter of FY 2031-32.

Objectives of the Scheme:

The primary objectives of the DIDF scheme are multifaceted, aiming to address various critical aspects of the dairy industry:

1. Modernization and expansion of dairy processing infrastructure.
2. Enhancing the quality and safety standards of dairy products.
3. Augmenting the milk processing capacity to meet growing demands.
4. Encouraging investment in value-added dairy products to boost farmers' income.
5. Promoting the establishment of chilling infrastructure, particularly in remote areas, to minimize milk spoilage and wastage.
6. Stimulating private sector participation in dairy processing ventures.

Scheme Outlay:

• Total: Rs. 11,184 Crore
• Project Outlay: Rs. 10,005 Crore
• Loan: Rs. 8,004 Crore
• End Borrowers’ Contribution: Rs. 2,001 Crore
• NDDB & NCDC Contribution: Rs. 12 Crore
• Interest Subvention (Government of India): Rs. 1167 Crore

Scheme Area:

• The DIDF scheme operates across the entire territory of India, encompassing both urban and rural areas. It is designed to benefit dairy farmers, cooperatives, private entrepreneurs, and investors engaged in dairy processing activities.

Components of the Scheme:

DIDF comprises several key components aimed at fostering holistic growth within the dairy sector:

1. Financial Assistance: Providing subsidized loans and grants for the establishment of modern dairy processing units, chilling infrastructure, and procurement of equipment.
2. Technology Upgradation: Facilitating the adoption of advanced processing technologies and quality control measures to enhance product standards.
3. Capacity Building: Conducting training programs and workshops to impart technical skills and managerial expertise to stakeholders.
4. Market Linkages: Facilitating access to markets for dairy products, both domestic and international, to promote export opportunities.
5. Research and Development: Supporting research initiatives aimed at innovation and product diversification to meet evolving consumer preferences.

Eligible Institutions:

The following entities are eligible to avail benefits under the DIDF scheme:

1. Dairy Cooperatives registered under the Cooperative Societies Act.
2. Private dairy processing units.
3. Farmer Producer Organizations (FPOs) engaged in dairy activities.
4. Public sector undertakings involved in dairy processing.
5. Non-Governmental Organizations (NGOs) working in the dairy sector.

Source of Funding:

The DIDF scheme is funded through a combination of sources, including:

1. Budgetary allocations from the Government of India.
2. Loans and grants from financial institutions such as banks and development agencies.
3. Contributions from participating stakeholders, including cooperatives and private investors.
4. Revenue generated from repayment of loans and interest.

Eligibility Criteria:

To avail benefits under the DIDF scheme, applicants must meet the following eligibility criteria:

1. Possession of necessary licenses and permits required for dairy processing operations.
2. Compliance with quality and safety standards prescribed by regulatory authorities.
3. Submission of a viable project proposal outlining the scope, objectives, and financial requirements.
4. Adequate collateral or guarantee for loans, as per the discretion of lending institutions.
5. Commitment to utilizing funds for the intended purpose and adherence to project timelines.

Terms & Conditions:

Upon approval of the project proposal, beneficiaries are required to adhere to certain terms and conditions, including:

1. Timely repayment of loans and adherence to repayment schedules.
2. Maintenance of requisite documentation and records for audit and monitoring purposes.
3. Compliance with environmental regulations and sustainability norms.
4. Periodic reporting on the progress and performance of the project to designated authorities.
5. Utilization of funds exclusively for the designated purposes outlined in the project proposal.

Submission and Sanction of Proposals:

• Interested applicants can submit their project proposals to the designated implementing agency responsible for overseeing the DIDF scheme. Upon receipt, the proposals undergo thorough evaluation based on predefined criteria such as technical feasibility, financial viability, and potential impact. Upon successful evaluation, the proposals are sanctioned, and financial assistance is disbursed to the beneficiaries as per the approved terms and conditions.

Conclusion:

• In conclusion, the Dairy Processing and Infrastructure Development Fund (DIDF) stands as a transformative initiative aimed at revolutionizing the dairy sector in India. By providing critical financial assistance and incentives, DIDF endeavors to catalyze the modernization, expansion, and diversification of dairy processing infrastructure, ultimately empowering stakeholders and fostering sustainable growth across the dairy value chain.

Frequently Asked Questions:

What is the Dairy Processing and Infrastructure Development Fund (DIDF)?

• DIDF is a government-initiated scheme aimed at modernizing and enhancing the infrastructure of the dairy sector in India through financial assistance and incentives.

Who launched dairy Processing and Infrastructure Development Fund?

• The Dairy Processing and Infrastructure Development Fund (DIDF) was established by the Government of India at the National Bank for Agriculture and Rural Development (NABARD), allocating a fund of Rs 80.04 billion, to bolster the modernization of the dairy sector.

What are the objectives of the DIDF scheme?

• The primary objectives include modernizing dairy processing infrastructure, enhancing product quality and safety, expanding processing capacity, promoting value-added dairy products, and stimulating private sector participation.

Who can benefit from the DIDF scheme?

• Dairy cooperatives, private dairy processing units, Farmer Producer Organizations (FPOs), public sector undertakings, and NGOs engaged in dairy activities are eligible beneficiaries.

What components are included in the DIDF scheme?

• The scheme comprises financial assistance, technology upgradation, capacity building, market linkages, and research and development initiatives within the dairy sector.

What is the source of funding for the DIDF scheme?

• Funding is sourced from the Government of India's budgetary allocations, loans and grants from financial institutions, contributions from stakeholders, and revenue generated from loan repayments.

What are the eligibility criteria for availing benefits under the DIDF scheme?

• Applicants must possess necessary licenses, comply with quality standards, submit a viable project proposal, provide collateral for loans, and commit to utilizing funds for the intended purpose.

What are the terms and conditions associated with the DIDF scheme?

• Beneficiaries are required to repay loans on time, maintain documentation for audit purposes, comply with environmental regulations, report project progress periodically, and utilize funds as per the project proposal.

How can applicants submit proposals for the DIDF scheme?

• Interested parties can submit project proposals to the designated implementing agency responsible for overseeing the DIDF scheme for evaluation and approval.

How are proposals evaluated and sanctioned under the DIDF scheme?

• Proposals undergo evaluation based on criteria such as technical feasibility, financial viability, and potential impact. Upon successful evaluation, proposals are sanctioned, and financial assistance is disbursed to beneficiaries.

What is the expected impact of the DIDF scheme on the dairy sector?

• The scheme is expected to revolutionize the dairy sector by fostering modernization, expansion, and diversification of processing infrastructure, ultimately leading to sustainable growth and empowerment of stakeholders across the dairy value chain.

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