January 27, 2023
Riddhi Thakrar

Dairy Entrepreneurship Development Scheme (DEDS)

The Government of India has launched and financed a number of programmes under the National Bank for Agriculture and Rural Development (NABARD), amongst which is something the Dairy Entrepreneurship Development Scheme (DEDS) has a significant position. The government established the "Venture Capital Plan for Dairy and Poultry" to offer support for establishing small dairy farms as well as other elements in the dairy sector underneath the Division of Animal Husbandry, Dairy development and Fisheries (DAHD&F).

In 2010, the name of such Venture Capital Scheme for Dairy and Poultry was modified to Dairy Entrepreneurship Development Plan after taking into account feedback from farmers, state governments, and banks (DEDS).

So if you want to know more about this scheme then in this article you will get to know about it in detail along with some additional information.

The objectives of DEDS

The Dairy Entrepreneurship Development Scheme's goals are to create self-employment and improve infrastructure throughout India's dairy industry. The programme also intends to assist business owners in establishing a dairy farms farm, infrastructures for the production of safe milk, and incentives for heifer calves rearing for preservation and the creation of high-quality breeding stock.

In addition to providing subsidies to farmers and entrepreneurs, the programme aims to transform the unorganized dairy industry's structural makeup so that milk processing can begin at the village level. The programme also aims to improve technologies for managing milk on such a commercial level and add value to milk by processing it and creating milk-related products.

The eligibility criteria under DEDS

Farmers, solitary entrepreneurs, and organizations from both the organized and unorganized sectors. Self-help organizations, dairy co - operative societies, Producer organizations, milk organizations, milk governing bodies, and Panchayat Raj Institutions are just a few of the organized sector organizations that are eligible for the programme.

Additionally, only one family member will be qualified for the programme unless the other constructs a special entity with independent infrastructure that is at least 500 meters from the other unit.

Subsidy provisions under DEDS

The Dairy Entrepreneurship Development Scheme only offers subsidies to individuals who can secure bank loan approval for their project. The following financial institutions are authorized to finance the programme:

1. Business banks

2. Urban, rural, and regional banks

3. Cooperative state banks

4. State-owned banks for rural development and cooperative agriculture

5. Other institutions may be eligible for NABARD refinancing.

NABARD offers a back-ended financial assistance of 25% of the cost of the project for General Category farmers and 33.33% for SC/ST farmers for dairy projects that are bank loan supported. For loans beyond Rs. 1 lakh, the entrepreneurs are obligated to contribute 10% to the total project cost, with the remaining 80% being covered by bank loans.

Understanding the funding pattern under DEDS

Entrepreneurs must initially provide 10% of the full sum as margin money. The remaining payment will be given when the project is finished, and the total authorized money will be charged 5.1% interest. The numerous nationalized banks that NABARD has partnered with will distribute the monies following due diligence and eligibility approval by having an exclusive committee established by the banks.

Depending on the loan, which will be chosen completely by the banks, payment of the line of credit can be completed in 3 to 7 years with a time limit of 3 to 6 months.

Importance of DEDS

The following documentation must be submitted in order to apply for the DEDS programme through NABARD:

1. An affidavit demonstrating unemployment and a lack of financial institution defaults

2. if the loan balance exceeds Rs. 1 lakh, documents pertaining to the property that will be mortgaged.

3. a copy of your caste certificate and ration card

4. three current passport-sized photos of you

5. In the case of a mobile or mobile veterinary clinic, a degree certificate from BVSc&AH.

6. a photocopy of a driver's license, if the vehicle is a refrigerator.

Implementing the DEDS

The business owners can request the project amount from the bank with which they have a deposit. The bank will evaluate the project in accordance with their standards and, if appropriate, will approve a bank loan for the entire amount, except the margin. Depending on how the unit is doing, the loan balance is paid in installments.

After the initial loan payment has been made, the bank will submit an application to the NABARD regional office in question for the disbursement and approval of the subsidy.


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