Dairy Processing and infrastructure Development Fund (DIDF)

Objectives of the DIDF

i. To modernize the milk processing plants and machinery and to create additional infrastructure for processing more milk. subsidy for milk processing plant

ii. create additional milk processing capacity for increased value addition by producing more dairy products.

iii. bring efficiency in dairy processing plants/producer owned and controlled dairy institutions, thereby enabling optimum value of milk to milk producer farmers and supply of quality milk to consumers.

Dairy Processing & Infrastructure Development Fund

has been set up with a corpus of Rs. 8,004 crore with National Bank for Agriculture and Rural Development (NABARD). the scheme which has the objective to provide subsidized loan @6.5% to capital stressed milk cooperatives for primarily replacing their decades old chilling and processing plants and addition of value added product plants. Out of Rs 10,881 crore of financial outlay for project components of DIDF, Rs 8,004 shall be loan from NABARD to NDDB/NCDC, Rs 2,001 crore shall be end borrowers contribution, Rs 12 crore would be NDDB/NCDC’s share and Rs 864 crore shall be contributed by DAHD toward interest subvention. The project focuses on building an efficient milk procurement system by setting up of processing and chilling infrastructure & installation of electronic milk adulteration testing equipment at village level.


i. Modernization & creation of new milk processing facilities

 ii. Manufacturing facilities for Value added Products

iii. Milk Chilling infrastructure iv. Setting up electronic milk testing equipment v. Project Management and Learning

vi. Any other activi related to the dairy sector targeted to contribute to the objectives of DIDF and decided by Government of lndia in consultation with the stakeholders.

Eligible Institutions

(i) NDDB and NCDC using the loans from the DIDF will lend to the following institutions r Co-operative Milk Unions . State Cooperative Dairy Federations . Multi State Milk Cooperatives o Milk Producer Companies . NDDB subsidiaries

(ii) Financial assistance under DIDF will be given to the end borrowers which are financially viable and willing to avail funds and also fulfill the eligibility criteria, as per Operation guidelines of DIDF.

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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