"Dairy Sahakar" Scheme

Context: Union Minister of Home Affairs and Corporation launched the "Dairy Sahakar" scheme at Anand, Gujarat, during the function organised by Amul for the celebration of the 75th Foundation Year of Amul. 
Objectives and Need 

• The livestock sector has a unique combination of being the backbone of rural livelihood. 
• The growth would have been a lot better if there were concerted efforts to harmonise programmes across the country to create an ecosystem that is conducive to the growth of the sector.
• It comes with the overall objectives of Doubling the farmers income and Atmanirbhar Bharat. With the Dairy Sahakar Scheme 2021, the central government wants to contain co-operatives in creating dairy infrastructure. 
• Therefore initiatives are being taken in this context.

About

• The Dairy Sahakar with a total investment of  Rs 5000 crore will be implemented by NCDC  under the Ministry of Cooperation to realize the vision, “from co-operation to prosperity".  

Under the scheme, financial support will be extended by NCDC to eligible cooperatives for activities such as

• Bovine development
• Milk procurement
• Processing
• Quality assurance
• Value addition
• Branding
• Packaging
• Marketing
• Transportation and storage of milk and milk products

Exports of dairy products within the overall objectives of "Doubling the farmer’s income" and "Atmanirbhar Bharat.  

• There will also be a convergence with various schemes of Government of India and/or of State Government/UT Administration/ Development agencies/ bilateral/multilateral assistance/ CSR mechanism is encouraged
• The scheme will supplement the existing efforts for strengthening the dairy sector in the country.

Key Objectives

• To realize the vision, “from cooperation to prosperity”.
• “Doubling the farmers income” and achieving the mission of “Atmanirbhar Bharat”.
• To assist provision of holistic animal husbandry and dairy sector development through dairy facilities by cooperative societies,
• To assist promotion of dairy facilities by cooperative societies.
• To assist cooperative societies meet the objectives of growth in dairy sector.
• To assist cooperative societies participate in the Dairy Sector Development Mission.

Activities Covered in NCDC Dairy Sahakar Yojana

• A) Infrastructure – This scheme would enable creation, modernization, expansion, repairs, renovation of dairy infrastructure covering all types as mentioned above.
• B) Margin money for raising working capital required for day-to-day operations in respect of those mentioned above.
• C) Working capital for day-to-day operations.

Eligibility Criteria for Dairy Sahakar Scheme

• Any Cooperative Society registered under any State/ Multi State Cooperative Societies Act in the country, with suitable provision in the bye-laws to undertake services related to dairy sector, shall be eligible for the financial assistance subject to fulfilment of guidelines under the scheme.
• NCDC assistance shall be provided either through the State Governments/ UT Administrations or directly to the cooperatives which fulfil NCDC Direct Funding guidelines. Dovetailing with other schemes or programmes of Government of India/ State Government/ Other funding Agency is permitted.

Project Cost: As per actual requirement.

• Loan Period of NCDC Dairy Sahakar Scheme.
• Period of loan will be for 8 years, including 1-2 years moratorium on repayment of principal, depending on the type of project and its ability to generate revenue.

Rate of Interest in Dairy Sahakar Yojana

• As per NCDC circular for interest rate as amended from time to time. As an incentive, NCDC will provide 1% less than applicable rate of interest on term loan for the project activities in case of borrower cooperative society where women members are in majority for the entire tenure of the loan only if timely repayments are made.

NCDC Role in Funding Cooperatives

• The National Cooperative Development Corporation (NCDC) is a statutory Corporation set up under an Act of Indian Parliament on 13 March 1963. Till date, NCDC has financed numerous cooperative initiatives aggregating Rs. 1.57 lakh crore. 
• Now the NCDC will focus on financing cooperatives which is a need of the hour in the time of Coronavirus.

Inspiration for Dairy Sahakar Scheme 2021: The inspiration for the Dairy Sahakar Scheme comes from what the successful cooperatives have done in dairy sector.