Government Subsidy For Milk Chilling Infrastructure (1)

Government Subsidy For Milk Chilling Infrastructure

The Government Subsidy For Milk Chilling Infrastructure envisages providing loan assistance to State Dairy Federations, District Milk Unions, Milk Producers Companies, Multi State Cooperatives and NDDB subsidiaries across the country who are termed as Eligible End Borrowers (EEBs). The funding period (2017-18 to 2019-20) of the scheme to be revised to 2018-19 to 2022-23 and the repayment period to be extended upto 2030-31 with spill over to first quarter of the FY 2031-32.

Objectives of the DIDF scheme:

  • To modernize the milk processing plants and machinery and to create additional infrastructure for processing more milk.

Implementing Agency and End Borrowers Government Subsidy For Milk Chilling Infrastructure :

Implemented by National Dairy Development Board (NDDB) and National Cooperative Development Corporation (NCDC)

End Borrowers: Milk Unions, State Dairy Federations, Multi-state Milk Cooperatives, Milk Producer Companies and NDDB subsidiaries.

Components of DIDF:

Milk processing, Chilling and Value added Products plants

Milk Chilling infrastructure

Electronic milk testing kit

New Components

  • Cattle feed/ feed supplement plants
  • Milk transportation system (Refer van/insulated tankers etc)
  • Marketing infrastructure (including e-market system, bulk vending system, Parlour, deep freezer, cold storage etc.
  • Commodity and Cattle feed go-downs
  • ICT infrastructure (e.g. block chain technology, servers, IT solutions, Near Real Time devices etc)
  • R&D (lab & equipment, new technology, innovations, product development etc)
  • Renewable energy infrastructure/ plants, trigen/ energy efficiency infrastructure
  • Pet bottle/packaging material manufacturing units for dairy purposes
  • Training centre (complete with civil and other necessary infrastructure)


Interest subvention [DAHD to NABARD]: 2.5% (with effect from 11.09.2020), Any increase in cost of funds, shall be borne by the Eligible End Borrowers (EEB).

NDDB has also been allowed to give loans to End Borrowers from its own resources

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