Objective of the programme

• a)To create, strengthen and expand organized milk procurement network;
• b)To create and strengthen infrastructure for milk processing and value-added product manufacturing infrastructure in North Eastern Region (NER), Hilly Areas and Union Territories (UT)
• c)To create and strengthen infrastructure for improving quality of milk including village level cold chain & milk testing infrastructure
• d)To provide training and create awareness on Quality & Clean Milk Production

Procedure to avail benefits-

The States have to submit the DPR after recommendation of State Level Technical Management Committee. Project Sanctioning Committee (PSC) under the chairmanship of Secretary (DAHD) approved the project for admissible activities as per guidelines. Under the project as per prepare the State Cooperative Dairy Federations/Unions (for cooperatives), State Rural Livelihood Mission (for SHGs) and National Dairy Development Board (for MPCs and FPOs).

Duration of the programme/ scheme-

Comp A will be implemented throughout the country from 2021-22 to 2025-26 and will continue till 2027-28.

Nature/ scale of subsidy/amount (Funding pattern)-

75-25 for NER States, Hilly States & UTs and 50-50 for other States for Milk Procurement, Milk Chilling and Milk Processing and Value addition components, 70-30 for NER States, Hilly States & UTs and 50-50 for other States for Milk and Milk Product Testing Laboratories, Certification and Accreditation and 35- 65 for Research & Development and Establishment of Milk Producer Company components, 100% for training and planning & monitoring components.

Physical and financial targets of the programme-

• The NPDD Physical Cumulative Progress as on Dated 31.01.2026 Download (PDF 74.07 KB)
• The NPDD Financial Yearly Progress as on Dated 31.01.2026 Download (PDF 170.03 KB)

Objective of the programme:

To increase sales of milk and dairy products by increasing farmers’ access to organised market, upgrading dairy processing facilities and marketing infrastructure and enhancing the capacity of producer owned institutions, thereby contributing to increase in return to milk producers in the project area.

Procedure to avail benefits-

The project proposal of PIs/ PoIs duly recommended by appropriate Committee as per the Operational Guidelines of the scheme should be submitted to NDDB with a copy endorsed to DAHD for consideration.

Duration of the programme/ scheme-

2021-22 to 2025-26

Physical and financial targets of the programme-

Financial: The scheme is envisaged with a total Outlay of Rs. 1568.28 crore in the form of Loan of Rs.924.56 crore (JPY 14,978 million) by JICA and remaining amount of Rs.475.54 crore as Grant by Govt. of India and Participating Institutes' share of Rs. 168.18 crore.

Physical: The targets envisaged for Strengthening of processing and chilling infrastructure:

• (a) 4500 villages to be assisted
• (b) Creating 8.96 LLPD chilling capacity
• (c) Creating 7 LLPD processing capacity
• (d) Incremental procurement of 14.20 LLPD from 1.5 Lakh additional milk producers

Nature/ scale of subsidy /amount:

Funding Pattern followed for implementation of Component B of NPDD is as under:

• (a) Strengthening of processing infrastructure component and feed manufacturing Facilities will be funded as interest bearing loan (90% of the project cost as Loan and rest 10% as State Government/POI’s contribution).
• (b) Building for village level Producers’ institution and capital cost on BMC and AMCU/DPMCU shall be funded as 50% ODA loan and 50% Grant-in-aid,
• (c) The activities such as Productivity Enhancement, milk collection accessories, all milk testing equipment at village level, Dairy Cooperative Society (DCS) establishment will be funded as 90% grant-in-aid and 10% as State Government/POI’s contribution.
• (d) ICT and Marketing infrastructure shall be funded as 80% ODA Loan and 20% Grant-in-aid by Government of India.
• (e) Project Management & Learning shall be 100% Grant basis. 90% of the fund to be transferred to NDDB for conducting trainings, overseas exposure, concurrent evaluation, impact studies, appointment of auditors for audit of accounts etc. The rest 10% of the fund shall be retained at DAHD for creating and managing PCMC-cell at DAHD in the form of suitable budget provision under the appropriate head of scheme.