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Sector Schemes for Business Support
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In summary
The Dairy Entrepreneurship Development Scheme (DEDS) was introduced to encourage self-employment and investment in dairy farming, milk handling, processing, and marketing. The Government of India discontinued the scheme from 1 April 2020. Applicants should not rely on historical subsidy rates or apply through an outdated DEDS process.
- DEDS historically supported dairy units, calf rearing, milk-processing equipment, chilling, cold storage, transport, and dairy marketing outlets.
- It used bank-linked finance and back-ended capital subsidy for eligible projects.
- Current programmes, including the National Programme for Dairy Development (NPDD) and the Animal Husbandry Infrastructure Development Fund (AHIDF), have separate purposes and eligibility rules.
Before investing, verify the current scheme guidelines and prepare a project budget covering setup costs, operating expenses, and working capital.
What was the objective of the DEDS scheme?
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The objective of the DEDS scheme was to generate self-employment and strengthen dairy infrastructure in India. The programme supported eligible investment in milk production, procurement, preservation, transportation, processing, and marketing. It also aimed to encourage heifer-calf rearing, village-level milk-processing facilities, value-added dairy products, and modern dairy farms.
The Government of India implemented DEDS through the National Bank for Agriculture and Rural Development (NABARD) from September 2010 to March 2020. The scheme was discontinued from April 2020.
Is the DEDS scheme still available?
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No. The Government of India discontinued the Dairy Entrepreneurship Development Scheme from 1 April 2020. New applicants cannot rely on DEDS as an active subsidy programme.
Historical DEDS materials describe subsidy rates, component ceilings, and eligibility categories that applied while the scheme operated. These details should not be used to estimate current government assistance. Check the latest official guidelines for programmes that currently cover your proposed activity.
What activities did the DEDS scheme cover?
During its operation, DEDS covered a range of dairy-related investments. These examples describe its historical scope, not a current list of subsidised activities:
- Small dairy units using eligible cows or buffaloes.
- Heifer-calf rearing units.
- Vermicompost units integrated with dairy animals.
- Milking machines, milk testers, and bulk milk cooling units.
- Equipment for processing indigenous milk products.
- Cold-chain, dairy-product transportation, and cold-storage facilities.
- Private mobile or stationary veterinary clinics.
- Dairy marketing outlets and parlours.
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Who was eligible under the former DEDS scheme?
The former DEDS framework covered eligible individuals and organisations involved in dairy-related activities. Applicant categories included individual farmers, entrepreneurs, non-governmental organisations, Panchayati Raj institutions, self-help groups, dairy cooperative societies, milk unions, and milk federations, subject to component-specific conditions.
These historical categories do not establish eligibility for current government support. Applicants should confirm the current criteria of the relevant programme and financing institution before preparing a proposal.
Which current schemes can dairy businesses explore?
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Dairy businesses can review current government programmes that support dairy infrastructure, organised milk procurement, processing, or eligible working-capital needs. These programmes are not direct replacements for every former DEDS component.
National Programme for Dairy Development (NPDD)
NPDD supports organised milk procurement, milk-quality testing, chilling and processing infrastructure, and value-added dairy production through eligible projects. The Department of Animal Husbandry and Dairying publishes the programme’s current guidelines and approved project information. Access is through eligible institutions and project routes, not a universal individual subsidy application.
Animal Husbandry Infrastructure Development Fund (AHIDF)
AHIDF has supported eligible investment in dairy processing and value addition, animal-feed plants, and specified animal-husbandry infrastructure. Eligibility, financing terms, and programme availability depend on current official guidelines. Confirm the latest status and application route before including AHIDF support in a business plan.
Kisan Credit Card (KCC) working-capital support
Eligible dairy and animal-husbandry farmers may be able to access working-capital finance through the Kisan Credit Card facility, subject to applicable rules and bank assessment. Ask the bank about eligible expenses, documentation, limits, and repayment terms.
National Livestock Mission
The National Livestock Mission supports specified livestock and fodder-related entrepreneurship activities under its current guidelines. It does not automatically cover every activity that DEDS once supported. Check whether the proposed project and applicant category qualify.
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What documents may be required for dairy-business funding?
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The required documents depend on the current scheme, financing institution, applicant type, and proposed project. A bank or implementing agency may request:
- Identity and address proof, PAN, and photographs.
- Bank statements and relevant income or financial records.
- A project report with the proposed activity, estimated costs, and cash-flow projections.
- Land ownership documents or a valid lease arrangement, where required.
- Quotations for animals, equipment, construction, or processing machinery.
- Business registration or constitution documents, where applicable.
Confirm the exact checklist with the bank or implementing agency. Do not assume that the former DEDS document list or application route applies to current programmes.
How should you plan a dairy-business budget?
Estimate one-time setup costs separately from monthly operating expenses. Your budget should reflect the scale of the dairy unit, local prices, animal health requirements, and how you will sell milk or processed products.
- Setup costs: animals, shed construction or renovation, equipment, water and electricity, and waste-management facilities.
- Recurring expenses: feed, veterinary care, labour, utilities, insurance, transport, and maintenance.
- Working capital: funds to cover routine expenses while you establish reliable sales and payment cycles.
- Contingency: a reserve for animal-health issues, feed-price changes, equipment repairs, and delayed customer payments.
Build a cash-flow forecast using realistic assumptions for milk yield, sale price, feed consumption, animal health, and collection-payment timing. Assess net cash flow after operating expenses and loan repayments rather than relying on gross milk revenue.
Which banks provided loans under the DEDS scheme?
Historically, the NABARD dairy loan under the DEDS scheme was delivered through eligible financing banks, with NABARD administering the scheme and providing refinance support. DEDS is discontinued, so these bank categories do not mean that a new DEDS loan or subsidy is currently available.
| Bank type | Description |
| Scheduled commercial banks | Commercial banks that participated in eligible agricultural and allied-sector lending under the former scheme. |
| Regional Rural Banks (RRBs) | Rural-focused banks that provided eligible lending through their branch networks. |
| State Cooperative Banks | State-level cooperative banking institutions that supported eligible cooperative and rural credit activity. |
| District Central Cooperative Banks | District-level cooperative banks that provided rural and agricultural credit. |
| State Cooperative Agriculture and Rural Development Banks | Cooperative institutions focused on longer-term agricultural and rural development finance. |
| Primary Urban Cooperative Banks | Eligible urban cooperative banks included in the historical NABARD refinance framework. |
A dairy entrepreneur considering the DEDS today should instead confirm current funding options with an eligible bank and explore whether a Bajaj Finance Business Loan suits broader business expenses, subject to the eligibility criteria and approval.
How can financing support a dairy business?
A dairy business may need funds for milk-chilling or processing equipment, feed inventory, packaging, transport, facility upgrades, or expansion. Bajaj Finance Business Loan offers eligible applicants funding from Rs. 2 lakh to Rs. 80 lakh, with repayment tenures from 12 months to 96 months. The loan is collateral-free.
Applicants can choose from Term Loan, Flexi Dropline Loan, and Flexi Hybrid Loan options, each with different withdrawal and repayment features. This is a commercial financing option, not a DEDS subsidy, and does not guarantee eligibility for government assistance.
What are the eligibility criteria and documents required for a Bajaj Finance Business Loan?
The business loan eligibility criteria include Indian citizenship, self-employed status, a business vintage of at least 3 years, a CIBIL score of 650 or higher, and an age of 21 to 80 years, subject to the applicable age limit at loan maturity and product terms.
Required documents include:
- KYC documents - Aadhaar/passport/voter’s ID/driving license
- PAN card
- Proof of business ownership
- Additional financial documents
How to apply for a Bajaj FInance Business Loan?
- Click the 'Check Loan Offer' button to open the online application form.
- Enter basic details, including Name, PAN, Date of Birth, PIN Code, and Business details, and click 'CONTINUE'.
- Complete banking verification and continue.
- View your offer details, select the loan type — Term Loan, Flexi Dropline Loan, or Flexi Hybrid Loan — and choose the repayment tenure.
- Review the details and submit the business loan application.
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Frequently Asked Questions
Overview
When was the Dairy Entrepreneurship Development Scheme launched?
The Dairy Entrepreneurship Development Scheme (DEDS) was launched in India in 2010 to promote entrepreneurship in the dairy sector.
What was the Dairy Entrepreneurship Development Scheme?
The DEDS scheme was a government initiative launched in 2010, with NABARD as the nodal agency, offering capital subsidies for eligible dairy ventures. The Dairy Entrepreneurship Development Scheme (DEDS) supported activities such as dairy farming and milk processing, with a 25% capital subsidy for eligible beneficiaries. The scheme has since been discontinued.
Which ministry was responsible for the Dairy Entrepreneurship Development Scheme?
The Dairy Entrepreneurship Development Scheme (DEDS) was under the purview of the Ministry of Animal Husbandry, Dairying, and Fisheries in India. This ministry oversaw the implementation and management of various schemes and programs aimed at promoting the growth and development of the livestock and fisheries sectors in the country.
Which industries were eligible for the Dairy Entrepreneurship Development Scheme?
The Dairy Entrepreneurship Development Scheme (DEDS) extended eligibility to various industries within the dairy sector, including dairy farming, procurement of high-yielding animals, infrastructure development, equipment acquisition, and milk processing. These industries contributed to promoting entrepreneurship and enhancing productivity and efficiency in India's dairy sector, thus supporting the scheme's objectives of boosting dairy production and farmer incomes.
Which banks provided loans under the DEDS scheme?
Loans under the former DEDS scheme were channelled through NABARD via six categories of eligible financial institutions, including commercial banks, Regional Rural Banks (RRBs), state cooperative banks, district cooperative banks, state cooperative agricultural and rural development banks, and other eligible institutions. If you are researching which banks provide loans under the dairy scheme, note that DEDS has been discontinued. For alternative funding, explore a business loan from Bajaj Finance.
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