Fodder block and silage making units

Establishment of fodder Block/Hay Bailing/Silage Making Units through incentivisation.

Jurisdiction of the Scheme -All over India

Fifty percent of total project cost with limit of Rs. 50 lakh  can be availed under scheme “Establishment of fodder Block/Hay Bailing/Silage Making Units through incentivisation”

Eligibility: Individuals/ Self Help Group (SHG)/Framers Producer organizations (FPO)/Farmers

Subsidy 50% of the total project cost with subsidy up to Rs. 50 lakh will be provided to the beneficiaries through State Implementing Agencies in two equal instalments as per scheme guidelines. The private entrepreneurs, SHG, FCOs JLG, FPOs, Dairy Cooperative societies, 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% percent capital subsidy towards project cost to the beneficiary 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 bank loan or from the financial institution like NCDC or self-finance. The Eligible Entities may also avail benefit under Animal Husbandry Infrastructure Development Fund (AHIDF) for funding of the remaining amount of the project as per the scheme guidelines.

In case of the self-financing project, the project needs to be appraised by the bank where the Entrepreneurs/ Eligible Entity has bank account. The first instalment of 50% subsidy will be provided into the lending bank by SIDBI where the beneficiary has account. The subsidy will be released only when the beneficiary has made expenditure of 25% cost for the project towards infrastructure and has been verified by the State Implementing Agency. Remaining amount of 50% subsidy will be provided y SIDBI after completion of the project and verified by State Implementing Agency.

Indicative list of components eligible for funding for silage making unit

 for entrepreneurs (Production capacity 2000-2400 MT per annum)

Sl. No. Item
01 Construction of shed and godown (2000 square ft) @ 200per.sq.ft for material
02 Bailing Unit (120-150 mt) – one no.
03 Harvester one no.
04 Power operated chaff cutter one no.
05 Installation cost of plant and machinery
06 Shed for machinery storage (60’x50’x20’)@200 per sq. ft
07 Tractor with Mounted Trolley- One number


Indicative list of components eligible for funding for fodder block making unit

for entrepreneurship  (30 MT/day)



Item Quantity
01 LD-HD Cutting with electric motor starter, panel board, V-belt, Pulleys etc. LD Low Density Materials (like paddy straws) 01 no.
02 HD-LD Mixer complete with Electric Motor, HD-High Density materials (concentrate Pre-mixes) 01 no.
03 Densified TMR block maker with electric motors starter, hydraulic oil, cooling system 02 no.
04 Platform electronic Weigh Scale 02 no.
05 Main control panel complete with tarter contractors, relays meter, conduits, and fittings, cable trays etc. 1 lot
06 Stitching machine double thread 02 sets
07 Molasses Storage tank (2 MT capacity) OH molasses tank (80 kgs)capacity 01 sets

The entrepreneur can register & apply at

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