Dairy Infrastructure Development Fund (DIDF)
This profile has been independently compiled from official gazette notifications and verified web domains. Source Authority Link: dahd.nic.in Authority: Ministry of Fisheries, Animal Husbandry and Dairying • State/Region: Central Scheme (All India) • Last Audited: 09 Sep 2026
Quick AI Summary
Central government scheme providing subsidized loans through NABARD to dairy cooperatives for modern milk processing and value-addition infrastructure.
Detailed Summary
Scheme Overview
The Dairy Infrastructure Development Fund (DIDF) was established by the Government of India with a corpus of ₹10,881 crore to modernize the dairy processing sector. The fund is managed by the National Dairy Development Board (NDDB) and operated through the National Bank for Agriculture and Rural Development (NABARD). It aims to bridge the infrastructure gap in milk processing, chilling, and value-addition facilities across the country.
Key Components
- Processing Infrastructure: Setting up of new milk processing plants and modernization/expansion of existing plants.
- Chilling Infrastructure: Establishment of Bulk Milk Coolers (BMCs), Milk Chilling Centres, and Cold Storage facilities.
- Value Addition: Manufacturing facilities for milk powder, cheese, paneer, butter, ghee, and other value-added products.
- Quality Assurance: Setting up of milk testing laboratories and certification systems.
Financial Architecture
The scheme provides loan assistance up to 90% of the project cost for cooperative institutions. The interest rate to End Borrowers is fixed at 6.5% per annum. The interest subvention is provided by the Central Government to NABARD to enable this concessional rate. The repayment period is 10 years with a 2-year moratorium on principal repayment.
Key Benefits & Financial Assistance
| Comparison Criteria | Benefits |
|---|---|
| Key Benefits |
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Eligibility Criteria Profile
| Comparison Criteria | Eligibility |
|---|---|
| Occupation Status | Farmer |
| Domicile State | All India (Central Scheme) |
Application Process Guide
- The Milk Union/Federation prepares a Detailed Project Report (DPR) as per NDDB/NABARD format.
- The DPR is submitted to the concerned State Dairy Federation/NDDB Regional Office for preliminary scrutiny.
- NDDB conducts technical appraisal and financial viability assessment of the project.
- Upon technical clearance, NDDB forwards the proposal to NABARD with recommendations.
- NABARD sanctions the loan and enters into a Loan Agreement with the End Borrower.
- Funds are released in installments based on physical progress and utilization certificates.
- NDDB monitors project implementation; NABARD monitors financial progress.
Common FAQs regarding this Yojana
The rate of interest to the End Borrower (Milk Union/Federation) is fixed at 6.5% per annum for the entire loan tenure. The difference between NABARD's cost of funds and 6.5% is provided as interest subvention by the Government of India.
No. Under the original DIDF guidelines, only dairy cooperative institutions (Milk Unions, State Federations, Multi-State Cooperatives) registered under Cooperative Acts are eligible. Private entrepreneurs and Producer Companies are covered under the separate Animal Husbandry Infrastructure Development Fund (AHIDF).
There is no fixed upper ceiling per project; however, loan assistance is limited to 90% of the eligible project cost for cooperative institutions. The actual sanction depends on the Detailed Project Report appraisal, debt servicing capacity, and security offered.
The loan is repayable over a period of 10 years from the date of first disbursement, inclusive of a moratorium period of 2 years on repayment of principal. Interest is payable during the moratorium period as well.
The National Dairy Development Board (NDDB) is the designated agency for technical appraisal, financial viability assessment, and implementation monitoring of projects under DIDF.