Subsidy up to Rs 50 lakh for entrepreneurs for animal feed, fodder production

It will also provide affordable, quality fodder households rearing livestock

The Indian government’s National Livestock Mission (NLM) is helping entrepreneurs take up activities in animal feed and fodder by providing a capital subsidy of up to 50% (limited to Rs 50 lakh) of the total project cost. The government estimates that it will generate employment for 7 lakh people and help 20 lakh households rearing livestock get affordable, quality and nutritious fodder locally.

Under its Sub-mission on Feed and Fodder Development, the NLM is aims towards strengthening of fodder seed chain to improve availability of certified fodder seed required for fodder production and encouraging entrepreneurs for establishment of fodder block/hay bailing/silage making units through incentivisation.

The scheme is being implemented through the state implementing agency of the state animal husbandry department, state livestock agency/state livestock board and Indian government’s department of animal husbandry and dairying (DAHD).



  • Development of entrepreneurship in the field of feed and fodder.
  • Promoting, developing and disseminating forage technologies through frontline technology demonstrations.
  • To make available quality fodder with affordable prices at the local level.
  • To encourage the fodder production by the local farmers for supplying to these entrepreneurs. Thus use the fodder as a cash crop.



  • The private entrepreneurs, farmer producer organisations (FPOs), farmer cooperative societies (FCOs), dairy cooperative societies, joint liability groups (JLGs), self-help groups (SHGs) and Section 8 companies will be incentivized for the value-addition such as hay/silage/total mixed ration (TMR)/fodder block and storage of fodder by providing 50% capital subsidy towards project cost to the beneficiary. This is for infrastructure development related to hay/silage at village level/fodder blocks making units for procuring machinery like bailer, block making machines, TMR machines/equipment, forage harvester/reaper, heavy duty power-operated chaff cutters and any other PHT equipment as per the requirement/need.
  • The entrepreneurs/eligible entities need to arrange the remaining amount through a bank loan or from a financial institution like National Cooperative Development Corporation (NCDC) or self-finance.
  • The eligible entities may also avail benefit under the Animal Husbandry Infrastructure Development Fund (AHIDF) for funding of the remaining amount of the project as per the scheme guidelines.



  • 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.



Individuals, farmer producer organisations (FPOs), farmer cooperative societies (FCOs), dairy cooperative societies, joint liability groups (JLGs), self-help groups (SHGs) and Section 8 companies.



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


To read in Punjabi and Hindi, click below.

ਪਸ਼ੂ ਖੁਰਾਕ ਅਤੇ ਚਾਰਾ ਉੱਦਮ ਮਿਸ਼ਨ

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