28 Feb 2020

Dairy Processing and Infrastructure Development Fund (DIDF)Quick read

Source: PIB

The Cabinet Committee on Economic Affairs has given its approval for upward revision of interest subvention from “up to 2%” to “up to 2.5% p.a.” under the scheme Dairy Processing and Infrastructure Development Fund (DIDF)with the revised outlay of Rs 11184 Cr.

Key updates

  • The scheme envisages to have interest subvention component of Rs 1167 crore to be contributed by DAHD during the period of 2018-19 to 2030-31 with spillover to first quarter of the FY 2031-32. 
  • The scheme also has a loan component of Rs. 8004 crore to be contributed by NABARD. Rs. 2001 cr shall be contributed by Eligible End Borrowers and Rs. 12 cr would be jointly contributed by National Dairy Development Board (NDDB)/National Cooperative Development Corporation (NCDC).
  • Under Dairy Processing and Infrastructure Development Fund (DIDF) Government of India would provide Interest subvention up to 2.5% to NABARD from 2019-20 (with effect from 30.07.2019) to 2030-31 and in case there is any further increase in the cost of funds, it shall be borne by the end borrowers themselves.
  • The funding period (2017-18 to 2019-20) of the scheme is revised to 2018-19 to 2022-23 and the repayment period to be extended up to 2030-31 with spillover to first quarter of the FY 2031-32.

A Brief note on the scheme 

  • In order to accelerate Dairy Development in the country, in 2017, a new scheme Dairy Processing and Infrastructure Development Fund (DIDF) has been launched in December 2017 by this Department. 
  • The scheme aims to benefit 95 lakh milk producers in 50000 villages. 
  • Further, it will create employment directly or indirectly for skilled, semi-skilled and unskilled workers. 
  • Major activities covered under DIDF are:
    1. Modernizations creation of new milk processing facilities and 
    2. Manufacturing facilities for Value Added Products
    3. Milk Chilling Infrastructure
    4. Setting up of Electronic Adulteration testing kit
    5. Project Management & Learning


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