PDE page 2


  • Margin money – 10 % of the outlay ( minimum) by Entrepreneur
  • Back ended capital subsidy – 25 % or 33.33% as applicable by bank
  • Bank Loan – Balance portion, Minimum of 50% of the outlay

Assistance under the scheme would be purely credit linked and subject to sanction

of the project by eligible financial institutions. After the disbursement of first

installment of the loan, the bank shall apply to the Nodal Bank for sanction and release of subsidy.

  • Commercial Banks
  • Regional Rural Banks
  • State Cooperative Banks
  • State Cooperative Agriculture and Rural Development Banks, and

The entrepreneurs shall apply to the banks for sanction of the project. The subsidy

shall be released on first come first serve basis subject to availability of funds.

  • If the project is not completed within the stipulated period, benefit of subsidy

shall not be available and advance subsidy placed with the participating bank,

if any, will have to be refunded forthwith to Lead Bank.


The Joint Monitoring Committee (JMC) consisting of representatives of Lead Bank, concerned banks and Director of Animal Husbandry & Veterinary Services, Odisha under the chairmanship of Commissioner- cum- Secretary, F&ARD, Govt. of Odisha will review implementation of the scheme at regular intervals. The PSC will review the progress on quarterly basis. The participating banks should conduct periodic inspections of the units and give a feedback to the PSC on a consolidated basis. The units set up under the scheme will be field monitored on a sample basis by officials from the Directorate of Animal Husbandry & Veterinary Services, Odisha & their observations will be put up toJMC for discussion. The discretion to modify the unit cost is vested with anEmpowered Committee under the Chairmanship of Secretary, F&ARD, Govt. of Odisha.


1) The participating banks will adhere to the norms of appraising the projects regarding technical feasibility and commercial/financial viability.

2) All possible care will be taken to avoid duplication of projects under the scheme with similar projects implemented under DEDS by DAHD&F Govt. of India and such similar projects implemented by Directorate of AnimalHusbandry Govt. of Odisha.

3) The participating banks should ensure insurance of the assets created under the project, wherever required.

4) A signboard displaying “Assisted by Fisheries & Animal Resources Development Department, Govt. of Odisha” will be exhibited at the unit.

5) Pre and post completion inspection of the project shall be undertaken by the participating bank to verify physical, financial and operational progress as and when required.

6) The Fisheries & Animal Resources Development Department Govt. of

Odisha reserves the right to modify, add and delete any terms / conditions without assigning any reason.

7) The Fisheries & Animal Resources Development Department Govt. of Odisha interpretation of various terms will be final.

8) The Fisheries & Animal Resources Development Department Govt. of

Odisha reserves the right to recall any amount given under the scheme without assigning any reason thereof.

9) Pre and post inspection would be undertaken by the Fisheries & Animal Resources Development Department Govt. of Odisha /Lead Banks to find out the physical and financial progress as and when required.

10) Other operational instructions issued by the Fisheries & Animal Resources Development Department Govt. of Odisha / Lead Banks from time to time will be strictly followed.



  • Loan proposal from entrepreneur  Through VAS/AVAS  Bank
  • Bank (Appraises as per their norms, Sanctions the total outlay excluding

margin, disburse the 1st instilment) Lead Bank R.O through their HO for

release of subsidy.

  • Lead Bank R.OPSC (Scrutinizes, Sanctions & authorizes NABARD to

release funds)

  • Lead Bank R.O Bank HO Branch
  • Bank BranchRelease of rest of the loan amount to entrepreneurs

(On receipt of subsidy, the branch should credit the subsidy to the reserve fund of the borrower. A Utilization Certificate in the prescribed format shall be submitted to Lead Bank.)


  • Animals will be purchased by the beneficiaries from outside the districts and from other States wherever possible.


AH Department

  • The Deputy Director, Dairy Development, Directorate of AH & VS, Odisha will be the Nodal officer for implementation and monitoring of the scheme. He will prepare the District wise target and issue guidelines to all the CDVOs & different banks of the State about the programme and take necessary steps for implementation and follow up.
  • The Block wise & Bank wise target of the district will be prepared at the level of CDVOs on consultation with respective LDMs & AGM, Lead Bank of respective districts.
  • The CDVOs will release of advertisement for applications from interested farmers through local LIs, VASs & MPCS secretaries.
  • The VASs/ AVASs will receipt the applications from the interested farmers & submit the valid applications to the concerned Banks.
  • A consolidated list of applications will be submitted to CDVOs by the VASs.
  • The monitoring formats will be communicated to all the CDVOs from the Directorate.
  • The CDVOs will submit the monthly & Annual Reports to Directorate of AH&VS on regular basis.
  • Director AH & VS will review the progress every month.


  1. Popularization of the scheme at various level
  2. Build awareness among farmers through meetings, training etc.
  3. Distribute the ‘Common application format’ the perspective entrepreneurs.
  4. Guide the applicants to fill-up the application.
  5. Assist the entrepreneur to prepare techno-financial proposal for availing bank loan.
  6. Inform CDVOs on the number of entrepreneurs applying for the

scheme periodically.

  1. Liaise with bankers for sanctioning of loan.
  2. Provide guidance to the entrepreneur to procure the cows from

various markets within and outside State.

  1. Certify the age and general health condition of cows during


  1. Guide the entrepreneur on the measures to be taken while transporting the cows from place of purchase to the farms.
  2. Periodically guide the entrepreneur on vaccination, deworming,feeding and breathing of the cows.
  3. Liaise with local MPCS & Milk Unions for milk marketing.


  • To issue instructions (if not issued) & ensure receipt of scheme guidelines by all the branches.
  • Liaise with local veterinarians for preparation of the techno- financial project report
  • Identify, receive and sanction of projects
  • Release of 1st installment and then apply to Lead Bank for sanction of subsidy
  • Recover the loan amount as per repayment schedule
  • Periodic inspection of the units and provide feedback to JMC
  • Utilisation Certificate to be submitted
  • Insurance of assets to be ensured
  • Timely release of loan.
  • Carry out the Tri-partite agreement with entrepreneur & Milk Unions of OMFED where ever needed
  • Facilitate in proper selection of entrepreneur
  • Facilitate and ensure provision of backward & forward linkages for success of the project
  • Coordinate & help in recovery of bank’s dues
  • Forwarding the subsidy claims to the Lead Bank through their respective

Head offices.

  • Support the entrepreneurs on financial solvency of the dairy farm.

OMFED/Milk Union:-

  • OMFED will be requested to provide list of milk routes to all Regional Offices of Banks concerned
  • OMFED will be requested to communicate a letter to all General Managers of Milk Unions to authorize the Dairy Cooperative Societies to sign the Tripartite Agreement, in case the financing being made in MPCS areas.
  • Where ever Milk producing Societies have become defunct, financing should be taken up in a cluster manner so that the District Milk Union will revive the defunct societies to enhance milk procurement.

NABARD/Nodal Bank:-

  • Administer the Subsidy fund
  • Conduct PSC
  • Scrutinize the claims of banks and release the subsidy
  • Monitor the schemes financed on a regular basis and provide report to Fisheries & Animal Resources Development Department, Govt. Of Odisha.
  • To plan for improvement and expansion of the scheme for future based on the feedback.


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