Business India

Cabinet approves plan to develop dairy sector

Cabinet approves plan to develop dairy sector

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Tuesday approved a Rs 10,881 crore fund, for the period 2017-18 to 2028-29, to develop the country’s dairy sector, benefitting 95 lakh farmers and generating nearly 2.5 lakh jobs.

The Dairy Processing & Infrastructure Development Fund (DIDF) will focus on building an efficient milk procurement system by setting up of chilling infrastructure and installation of electronic milk adulteration testing equipment and creation, modernization, expansion of processing infrastructure and manufacturing faculties for value added products for the milk unions and producers, said a cabinet communique.

“Out of Rs 10,881 crore of financial outlay for project components of DIDF, Rs 8,004 crore shall be loan from NABARD to National Dairy Development Board (NDDB) and National Dairy Development Cooperation (NCDC), Rs 2,001 crore shall be end borrowers contribution,” it said.

In addition, Rs 12 crore would be contributed by the NDDB and the NCDC while Rs 864 crore would come from the Dairy Department towards interest subvention.

Benefiting 95 lakh farmers in about 50,000 villages, the project is set to generate 40,000 direct and two lakh indirect employment opportunities for skilled, semi-skilled and unskilled manpower, the statement said.

“Direct employment opportunities for about 40,000 people will be created under the scheme through project activities like expansion & modernisation of existing milk processing facilities, setting up of new processing plants, establishment of manufacturing facilities for value added products and setting up of Bulk Milk Coolers (BMCs) at village level,” it added.

The benefits also include creating additional daily milk processing capacity of 126 lakh litres, daily milk drying capacity of 210 tonnes, daily chilling capacity of 140 lakh litres, setting up of of 28,000 BMCs along with electronic milk adulteration testing equipment and daily value added products manufacturing capacity of 59.78 lakh litre of milk equivalent.

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