Subsidy up to Rs 50 lakh is given to boost entrepreneurs in small ruminant sector
To foster entrepreneurial skills and generate employment by expanding the scope of animal husbandry, the Indian government’s National Livestock Mission (NLM) is running a scheme for breed development of livestock and poultry. This includes helping entrepreneurs take up sheep and goat farming on a commercial scale by providing a subsidy of up to 50% of the capital cost (limited to Rs 50 lakh).
Under its Sub-Mission on Breed Development of Livestock and Poultry, the NLM aims to develop the entrepreneur to create forward and backward linkages for the produce available in the unorganised sector and link it with the organised sector.
The scheme was implemented across India in the 2021-22 financial year. The scheme is being implemented through the state implementing agency of the state animal husbandry department and Indian government’s department of animal husbandry and dairying (DAHD).
OBJECTIVES OF THE SCHEME
- To develop entrepreneurs in the small ruminant sector.
- To develop a sustainable business model on sheep and goats.
- To incentivize individuals, farmer producer organisations (FPOs), farmer cooperative organisations (FCOs), joint liability groups (JLGs), self-help groups (SHGs) and Section 8 companies for development of integrated rural sheep-goat production system.
- Conversion of the small ruminant sector from unorganised sector to organised sector through promotion of entrepreneurship & investment and creation of forward & backward linkages
- Spreading awareness about scientific rearing practices, nutrition and disease prevention etc.
- Promotion of stall-feeding model of sheep and goat rearing.
SALIENT FEATURES OF THE SCHEME
- Creation of entrepreneurs through one-time capital subsidy to individuals, farmer producer organisations (FPOs), farmer cooperative organisations (FCOs), joint liability groups (JLGs), self-help groups (SHGs) and Section 8 companies.
- The entrepreneurs/eligible entities can establish sheep and goat breeding units with minimum 500 females and 25 males. The sheep and goat unit to be established with the high-genetic variety used for producing goat milk, meat and fine wool quality.
- The central government will provide up to 50% back-ended subsidy for the capital cost of the project.
- The entrepreneurs/eligible entities need to arrange the remaining amount through bank loan or from the financial institution or self-financing.
PATTERN OF ASSISTANCE
- A total of 50% capital subsidy (limited to Rs 50 lakh) in two instalments. The subsidy is provided in two equal instalments.
- The first instalment is released upfront to the scheduled bank or financial institutions like the National Cooperative Development Corporation (NCDC) by the Small Industries Development Bank of India (SIDBI) to be credited to the entrepreneur/eligible entities’ account after the bank or financial institution releases first instalment of loan to the beneficiary and its confirmation by state implementing agency (SIA). Beneficiaries will be eligible for release of the second instalment by the SIDBI after completion of the project and certification by the SIA.
- In case of the self-financing project, the project needs to be appraised by the bank where the entrepreneurs/eligible entity have an account. The first instalment of 50% subsidy is provided into the lending bank by the SIDBI where the beneficiary has an account.
- The subsidy is released only when the beneficiary has made an expenditure of 25% cost for the project towards infrastructure and has been verified by the SIA. Remaining amount of 50% subsidy will be provided by the SIDBI after completion of the project and verification by the SIA.
- The entrepreneurs/eligible entities, interested in taking benefit under the entrepreneurship project in self-financing mode, need to provide bank guarantee from the scheduled bank valid for three years for the remaining cost of the project beyond the subsidy. This bank guarantee is provided in the name of the Indian government’s department of animal husbandry and dairying (DAHD).
- The original bank guarantee is to be kept in the safe custody of the SIA. Also, a copy of the bank guarantee and a declaration form need to be uploaded in the online portal at the submission of the application or to be attached with the application.
- No subsidy is provided for working capital, personal vehicle, purchase of land, cost for rent and lease of land.
ELIGIBLE ENTITIES
Individuals, farmer producer organisations (FPOs), farmer cooperative organisations (FCOs), joint liability groups (JLGs), self-help groups (SHGs) and Section 8 companies.
IMPLEMENTING AGENCIES
The state implementing agency of the state animal husbandry department and Indian government’s department of animal husbandry and dairying (DAHD).
FOLLOW UP OF THE PROJECT
The SIA will follow up the project for a period of two years after completion with regards to its operation.
Complete details about the scheme are available on website https://nlm.udyamimitra.in
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